Mortgage deal numbers hit six-month high

Mortgage availability has hit a six-month high, with data from Moneyfacts showing that the number of residential mortgages on the market surged to 4,341 at the start of February. Data shows that the total has since climbed by a further 150 to hit 4,491. This marks a high not seen since August, with September’s controversial mini-Budget having unsettled markets and seen the withdrawal of many deals. While the average rate for a two-year fixed-rate mortgage surged from 4.7% to a peak of 6.65% in October, some lenders are now offering fixed-rate mortgages at rates lower than the 4% Bank Rate. On February 10, the average two-year fixed rate dropped to 5.36%. The average five-year fix has fallen from 6.51% in October to 5.08%. But many first-time buyers will not benefit from the price war. Falling prices mean lenders are holding back from re-entering the market for those with small deposits, who are most at risk of getting into negative equity. 

The Sunday Telegraph (12/02/2023)