"One notable difference month-on-month has been a return to the stability in the shelf life of a mortgage deal, which has doubled to 30 days, up from 15 days."
- Rachel Springall, finance expert at Moneyfacts
The availability of deals at 95% LTV has risen to its highest level in over two years, the latest Moneyfacts data shows.
The number of deals at the 95% LTV tier rose to 361, now at its highest point since May 2022.
Product choice overall rose month-on-month, to 6,658 options, its highest level since February 2008.
However, June also marks the fifth consecutive month of rate rises across two and five-year fixed mortgages, though the increases were modest, up by 0.02% and 0.03% respectively.
The average two and five-year fixed rates rose between the start of June and the start of July, to 5.95% and 5.53%. These rates remain slightly lower compared to December 2023, although the average two-year fixed rate is slightly higher compared to January 2024.
The average two-year tracker variable mortgage remained at 5.94% and the average standard variable rate (SVR) fell to 8.17%, just shy of the highest recorded (8.19%) during November and December 2023.
The average shelf-life of a mortgage product rose to 30 days, up from 15 days a month prior. The lowest shelf-life average on Moneyfacts records was 13 days in July 2023.
Rachel Springall, finance expert at Moneyfacts, said: “Borrowers who have a limited deposit may be pleased to see a rise in the number of mortgages available at 95% loan-to-value this month, reaching a two-year high. There are now 361 options available, the highest count since May 2022, when there were 369 deals. There is lots of room for growth in this area of the market, as it currently represents just 5% of all deals available to borrowers across fixed and variable mortgages. Overall product availability continued to rise, spreading a positive sentiment on mortgage choice for another consecutive month, its highest point in 16 years.
“The overall average two and five-year fixed mortgage rates rose for a fifth consecutive month may come as disappointing news to borrowers. However, one positive aspect to take away from activity during June is that the rises were modest. One notable difference month-on-month has been a return to the stability in the shelf life of a mortgage deal, which has doubled to 30 days, up from 15 days. Lenders have been repricing their deals in response to volatile swap rates, which calmed during June. If swap rates reach a turning point to drop then there will be an expectation for fixed mortgage rates to come down, but this may be a slow and steady process to have a huge impact on overall average rates."
