Moneyfacts research of the residential mortgage market reveals 398 changes to mortgage product rates during the month of July.
But Moneyfacts said those in the 90%+ LTV bracket are not the ones getting the best value from recent rate cuts.
The combination of new fixed rate mortgages on the market has brought the average fixed rate down 0.04%, from 4.78% to 4.74%.
The 5-year fixed rate mortgage has been most affected by the rate cuts taking that average down by 0.09% from 4.84% to 4.75%.
The increase in activity comes at a time when mortgage lending is under scrutiny from the Bank of England which is looking for lending commitments following its announced Funding for Lending scheme.
The scheme opens in August and will allow some banks to borrow up to 5% of their existing loan books for a 0.25% fee for a period of up to four years.
Of the 398 rate changes (113 variable and 285 fixed rates) 205 were rate reductions (39 variable and 166 fixed rates).
At face value this seems like good news but Moneyfacts said it is still the less risky big deposit mortgages that are set to benefit most.
Sylvia Waycot, spokeswoman for Moneyfacts.co.uk, said: “Industry experts and consumers alike will have been hoping to see the first-time buyer market rejuvenated by the BoE Funding for Lending scheme but current evidence suggests that those in the 90%+ LTV bracket are not the ones getting the best value from the recent rate cuts.
“Mortgage lenders were already lending to the more favoured, less risky higher deposit market so unless there is a big downward shift in rates in the higher loan to value market the Bank of England funding scheme will be a lost opportunity.”
