Sharp drop in mortgage products as average rates hit seven-year high

There has been a significant fall in the volume of mortgage products offered to borrowers as lenders pulled more than 500 deals, and average rates hit seven-year high, new research shows.

There were 518 fewer mortgage products available at the start of March compared to the beginning of February, according to Moneyfacts.

Overall average two- and five-year fixed rates for all LTVs have increased for the fifth consecutive month, rising by 0.21% and 0.17% respectively.

At 2.65%, the two-year average is the highest recorded since November 2015 (2.67%), and the five-year equivalent of 2.88% is the highest seen since April 2019 (2.88%).

Moneyfacts said this was the biggest monthly fall in availability since May 2020, when 626 products were pulled as a result of uncertainty and disruption caused by the pandemic.

This left 4,838 deals for borrowers to choose from, 384 fewer than were on offer in March 2020.

Many lenders have merely responded to increases in the Bank of England’s base rate by removing individual products from the market, while others have suspended lending for particular deposit sizes.

Read the full article on Property Industry Eye | MARCH 9, 2022 | MARC DA SILVA