Over Double the Availability than in October 2022

In the fast-paced world of real estate and finance, the landscape of mortgage options is constantly evolving. As of September 2023, there has been a remarkable surge in the number of mortgage products available in the market, marking a significant shift from the conditions observed in October 2022. In this blog post, we will explore the latest trends in the mortgage market, highlighting the increase in product availability, changes in mortgage deal durations, and shifts in fixed rates.

Rising Mortgage Product Availability

To put things into perspective, let’s begin with the numbers. The number of mortgage products available in the current market stands at an impressive 5,338. This figure is not only the highest it has been since February 2022 but also represents more than double the availability observed in October 2022. This surge in product offerings signifies a positive trend for homebuyers and homeowners, providing them with a wider array of options to choose from.

Stabilisation of Mortgage Deal Durations

Another noteworthy development is the stabilization of the average shelf life of a mortgage deal. After hitting lows of just 12 days in July, the average duration that a mortgage deal remains on the market has now increased to 15 days. This shift suggests that mortgage products are staying available for a slightly longer duration, allowing borrowers more time to consider their options and make informed decisions.

Falling Fixed Mortgage Rates

Now, let’s turn our attention to the heart of the matter—mortgage rates. Both the average two-year and five-year fixed rates have been on a downward trajectory since the beginning of August. As of the latest data, the average two-year fixed rate now stands at 6.66%, while the average five-year fixed rate is at 6.08%. These rate reductions provide an opportunity for borrowers to secure more affordable financing for their homes.

Lender Activity and Market Dynamics

Behind these shifts in the mortgage market lies the proactive role of lenders. Financial institutions have been cutting fixed rates and launching new mortgage deals to stimulate business activity. This dynamic approach benefits consumers by offering competitive rates and a variety of mortgage products tailored to different needs.

So surprisingly the mortgage market in September 2023 is witnessing a significant expansion in product availability, reflecting an optimistic outlook for prospective homebuyers and those seeking to refinance. The stability in the duration of mortgage deals and the downward trend in fixed rates further enhance the attractiveness of the current market.

For those in the market for a mortgage, now may be an opportune time to explore the plethora of options, lock in favourable rates, and make informed financial decisions. As always, it’s advisable to work closely with a qualified mortgage advisor to navigate the ever-changing landscape of mortgage choices.

Source: Data provided by #Dataloft, Moneyfacts, as of 18th September 2023