There has been a rise in the number of mortgages available to borrowers, particularly those with smaller deposits.
Research from data firm Moneyfacts highlights the total number of mortgage rates available to consumers increased between April and May, up from 3,842 to 3,927.
The number of mortgages available to borrowers with a 5% deposit saw the biggest increase, up by 78 month-on-month, from just 34 deals in April to 112 in May. Those with a 10% deposit also have more choice, with the number of rates available rising by 41, up from 440 to 481.
Aaron Strutt, product director at Trinity Financial, says: “Over the last six months the number of mortgages available to borrowers has increased significantly. The stamp duty holiday and the government’s 5% deposit guarantee scheme have really boosted the market.
“Some of the biggest lenders are still offering their cheapest ever rates, and it is possible to secure two-year fixes around 1% and five-year fixes at 1.35%. The arrangement fees are generally priced at £999, and borrowers have to option to make overpayments. There are also some great seven and ten-year fixes."
If you are looking for the cheapest mortgages, you will need to have a 35% or 40% deposit, but rates are very competitively priced if you have a 15% or 20% deposit. According to Moneyfacts, there is 710 rates to choose from if you have a 20% deposit.
What is the average mortgage rate?
The average two-year fixed rate on mortgage deals fell slightly between April and May, down from 2.58% to 2.57%. The average five-year fix has recently increased slightly from 2.77% to 2.79%.
Call Trinity Financial on 020 7016 0790 to find out how much you can borrow and the best rates, or book a mortgage consultation