While it is positive that lenders are passing competitive rates onto consumers, buyers will need significant deposits, typically of around 40%.
With 86 deals with an interest rate of 0.9% or lower available in the market, the mortgage price was is "really heating up," according to Miles Robinson, head of mortgages at Trussle.
The number of lenders offering mortgage products at under 1% has increased from one to 12 between March and July this year.
Robinson said: "This is great news for buyers, as they have the opportunity to guarantee record low interest on their mortgage payments for up to five years, offering them certainty and stability."
However, while it is positive that lenders are passing competitive rates onto consumers, Robinson noted that buyers will need significant deposits, typically of around 40%.
Trussle also noted that 2-year fixed rates are the most popular mortgage term type and the majority of demand is from remortgage customers, making up 74% of leads.
Only 2% of Trussle leads were looking for these types of mortgages in July 2021, and most leads looking for sub-1% products had loan-to-values (LTVs) of between 50% and 60%.
Robinson added: "Those who can only afford high LTV products, like first-time buyers, are still missing out on the lowest interest rates available.
"This is creating a real disparity in fairness across the market where those with the least capital are unable to take advantage of interest rates below 1%.
"We hope to see more low interest fixed term products become available.
"But, we urge lenders to ensure that all buyers have the opportunity to access the most competitive rates.”
