The number of available mortgage deals has shot up by 24% in the past year, according to new research.
The latest data from Moneyfacts shows that the number of mortgage products has increased by 849 in the last year to 4,460 – the highest number since March 2008.
Charlotte Nelson, finance expert at Moneyfacts, said that the boom in the number of deals was largely due to the amount of competition in the market.
“Lenders are currently faced with borrowers who lack the motivation to switch from their standard variable rate, meaning providers could potentially lose a sizeable chunk of their mortgage book very quickly,” she said.
“This uncertainty means providers now have to remain on top of their game to ensure they look attractive when borrowers start to consider remortgaging.”
Only a few months ago it looked as if the era of record low rates could be over, but recent cuts by a number of lenders suggests competition in the mortgage market is heating up again.
Last week, HSBC cut the interest rate on its five-year fix by 0.10% to 1.69% – the lowest currently on the market.
In April, Yorkshire Building Society reignited the mortgage price war with the lowest interest rate ever available in the UK at 0.89%.
This follows the launch in March of its lowest ever two-year fix at 0.99%.
“Providers today do not only need to be price sensitive, but also offer borrowers a variety of features, to allow the customer to almost be able to tailor the mortgage to suit their needs. Given the multiple scenarios lenders now cater for, it is little wonder the market has seen product numbers shoot up,” said Nelson.
“While the boost in product numbers can only be seen as a good thing, the more choice borrowers have, the more confusing it can be, so it is more important than ever that they seek advice to ensure they get the best deal for them,” she added.
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