Moneyfacts’ UK Mortgage Trends Treasury Report found that there are now 361 mortgage deals available at 95% LTV, the highest figure since May 2022 (369 deals).
Product choice has also risen overall month-on-month, with 6,658 mortgage deals available, the highest level since February 2008 (6,760).
Moneyfacts found that the average mortgage rate has risen overall, but only slightly. Two- and five-year fixed rate deals were up by 0.02% and 0.03% respectively over the past month. This marks the fifth consecutive month of rises, but these rates remain slightly lower compared to December 2023.
The overall average two- and five-year fixed rates rose between the start of June and the start of July, to 5.95% and 5.53% respectively. The average two-year fixed rate is 0.42% higher than the five-year equivalent.
The average ‘revert to’ rate or standard variable rate (SVR) fell to 8.17%, just shy of the highest recorded (8.19%) during November and December 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% LTV 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.
“The concerns surrounding mortgage affordability among borrowers remains and the government will no doubt be under the spotlight to see what plans may be set in motion to support homebuyers and those looking to get onto the property ladder.”
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