BTL investors and first-time buyers gain the most, research shows
Homebuyers now have access to a wider range of mortgage products, with increased competition among lenders potentially leading to more favourable borrowing conditions, new research from mortgage adviser Alexander Hall has found.
The analysis examined mortgage product availability across different segments of the market, comparing figures from the Autumn Budget to current levels, as well as year-over-year changes. The findings indicate that borrowers across all categories have seen an increase in choice.
Buy-to-let investors have experienced the most significant rise, with 2,220 products now available — an increase of 12.9% compared to last year and 7.9% since the Autumn Statement in October.
First-time buyers have also seen a notable improvement, with an estimated 694 mortgage products currently on the market. This represents a 2.7% increase since the Autumn Budget and an 11% rise compared to a year ago.
Home movers have benefitted from a 4.8% increase in mortgage product availability since the October Budget, while those seeking to remortgage have seen options expand by 4.7% over the same period.
Stephanie Daley (pictured), director of partnerships at Alexander Hall, acknowledged that while mortgage rates remain elevated, the increase in product availability offers a positive development for borrowers.
“While Bank of England rates have started to reduce, we’re yet to see any notable improvement with respect to mortgage rates and, in fact, our previous research shows that the average mortgage rate is currently around 8% higher than it was a year ago,” she said.
However, Daley noted that lenders are introducing new solutions, particularly for first-time buyers.
“Over the past few months, we have seen Halifax launch their FTB boost and Nationwide improve their helping hand proposition, which now also includes home movers,” she said. “Plus, lenders such as Skipton and Accord are offering creative solutions for lower deposit options.
“Given there are more products available, this means that lenders will be facing increased competition and so they may be more inclined to lower rates in order to win business.”
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