A recent analysis of the market undertaken by the financial information company Moneyfacts has shown that since the beginning of March – and no doubt fuelled by the COVID-19 pandemic – the UK’s lenders have withdrawn just under 2,700 mortgage deals and products. In effect, reducing the choice of products to borrowers by nearly a half.
Data taken at the beginning of August has shown there were only just in excess of 2,500 products available – marking a drop in choice of around 2,700 products since the same time 5 months earlier. In addition to the reduction in available products, interest rates have also began to slowly rise with an increase 0.09% since July on both 2 year and 5 year fixed rates, as the LTV ratio increases – therefore so too does the interest rate.
All is not doom and gloom however, as compared to the same month last year rates are still comparitively low, with the average LTV at 0.41% lower than August of 2019.
Notably this month, the Bank of England decided to keep the base rate at 0.1% as banks had begun increasing rates on higher loan to value deals.
It seems that until the economic situation improves or becomes more clear that we are unlikely to see any strong bounce back in the mortgage sector and the range of products available. With the interest rates remaining so low it is advisable that those looking for a new, better deal on their mortgage act now before rates begin to climb once more.
Call our dedicated team of Remortgage Advisers, who will be able to take you through the available options, on 01249 474952.