Number of residential mortgage products rises above 5,000 for the first time since May 2022

The number of residential mortgage products has risen above 5,000 for the first time since May 2022. This is according to the latest Moneyfacts UK Mortgage Trends Treasury Report. 

Moneyfacts data shows that mortgage product choice rose month-on-month to 5,146 options, breaching 5,000 for the first time since May 2022 (5,087) and the highest count since February 2022 (5,356).

There has been a rise in the number of mortgages available to borrowers with a 40% deposit, following an increase of 45 to 702. While there are now 806 products available to borrowers with a 15% deposit. 

What has happened to the average fixed rate?

The average two and five-year fixed rates rose between the start of March and the start of April to 5.35% and 5.05%, respectively. The average two-year fixed rate stands at 0.30% higher than the average five-year equivalent.

The average two-year tracker variable mortgage rate rose by 0.18% month on month and breached 5% for the first time in 14 years (December 2008 – 5.41%) to sit at 5.02%.

Aaron Strutt, product director at Trinity Financial, says: "It is good news that there are more mortgage products to choose from. During the 'mini budget' many of the lenders either increased their rates or pulled out of the market. 

"If you are looking for a mortgage there are lots of banks and building societies keen to attract borrowers."

Average standard variable rate costs remain high

Moneyfacts says the average 'revert to' rate or standard variable rate has continued to climb. At 7.30%, this rate is now the highest rate since February 2008 (7.31%).

Many borrowers are paying their lender's standard variable rates at the moment when they could switch to a cheaper mortgage. There is a wide choice of lenders offering mortgages without early repayment charges.