More than 200 mortgage products came to market this month, while average mortgage rates fell for the fifth month in a row, data from Moneyfacts has revealed.
The research, Moneyfacts UK Mortgage Trends Treasury Report, found there were 5,899 fixed and variable rate mortgage products at the start of January 2024.
This was an increase on the 5,694 products that were reported for the beginning of December 2023.
Moneyfacts finance expert, Rachel Springall, pointed out this was the biggest rise since September 2023, “which was an extremely busy period for lenders”.
The latest figures also represented a significant year-on-year increase, with the reported number of products in January 2023 standing at 3,643.
Springall added this increase in choice, coupled with cheaper mortgage rates, were “promising signs” for those looking to refinance this year.
However, she cautioned those coming off either a two or five-year fixed mortgage will be paying around 3 per cent more on their mortgage when they lock into a similar term.
“Despite this, it would be cheaper than reverting to a standard variable rate, which charge over 8 per cent on average,” she added.
Mortgage rates
Moneyfacts found average mortgage rates on the overall two and five-year fixed rate deals fell for the fifth consecutive month.
Springall described this in positive terms, stating: “The consecutive reductions to the overall average two- and five-year fixed mortgage rates will be of great relief for borrowers looking to refinance this year.”
It was found the overall average two and five-year fixed rates fell between the start of December and the start of January, to 5.93 per cent and 5.55 per cent respectively.
The last time these were below 6 per cent was in June 2023.
Moneyfacts's research also found an increase for mortgage product shelf-life, rising to 21 days at the start of the year.
This was an increase on both a monthly and yearly basis, with December 2023 recording a shelf life of 17 and January 2023 recording a shelf life of 15.
tom.dunstan@ft.com
What's your view?
Have your say in the comments section below or email us: ftadviser.newsdesk@ft.com
