UK markets close in 7 hours 46 minutes
  • FTSE 100

    7,097.80
    +21.63 (+0.31%)
     
  • FTSE 250

    22,601.19
    +109.83 (+0.49%)
     
  • AIM

    1,255.13
    +2.44 (+0.19%)
     
  • GBP/EUR

    1.1532
    +0.0022 (+0.19%)
     
  • GBP/USD

    1.3923
    +0.0030 (+0.22%)
     
  • BTC-GBP

    40,222.65
    -798.20 (-1.95%)
     
  • CMC Crypto 200

    1,461.84
    -9.57 (-0.65%)
     
  • S&P 500

    4,201.62
    +34.03 (+0.82%)
     
  • DOW

    34,548.53
    +318.19 (+0.93%)
     
  • CRUDE OIL

    64.83
    +0.12 (+0.19%)
     
  • GOLD FUTURES

    1,819.30
    +3.60 (+0.20%)
     
  • NIKKEI 225

    29,357.82
    +26.45 (+0.09%)
     
  • HANG SENG

    28,566.45
    -71.01 (-0.25%)
     
  • DAX

    15,321.00
    +124.26 (+0.82%)
     
  • CAC 40

    6,365.45
    +8.36 (+0.13%)
     

Choice of mortgages ‘now three-quarters of what it was in March 2020’

Vicky Shaw, PA Personal Finance Correspondent
·2-min read

The choice of mortgages has recovered to around three-quarters of the levels seen before the coronavirus pandemic took its toll on the market, analysis has found.

The recent reappearance of some low-deposit deals has helped to boost the selection of products, according to financial information website Moneyfacts.co.uk.

In the early days of the crisis last year, many low deposit deals in particular vanished as lenders’ fears around “riskier” mortgages grew.

But Eleanor Williams, a finance expert at Moneyfacts, said 29 more 5% deposit mortgages had become available over the past month, taking the total number of deals in this bracket to 34.

A new Government-backed 5% deposit mortgage scheme is set to launch later this month.

Moneyfacts found that the choice of mortgage products across the market generally now stands at 74% of what it was before the coronavirus crisis had a significant impact on the market.

There are now 3,842 “live” deals to choose from, marking the widest level of choice since there were 5,222 products back in March 2020.

However, borrowers may need to watch out for the fees that come with products.

Moneyfacts said that, among deals with fees attached, the average fee now stands at £1,053 – marking the highest amount since November 2012, when it was £1,107.

And adding a note of caution to those with a 5% deposit, Ms Williams said: “Borrowers may wish to note that the average two-year fixed rate at 95% LTV (loan-to-value) is currently 4.47%, a full 1% above the corresponding rate this time last year, while the average five-year equivalent at 4.32% is 0.42% higher year-on-year.

“Due to this, some may elect to wait until more providers and products are available to them.”