The housing market is showing signs of renewed confidence, with a significant increase in the variety of mortgage products available, even before the anticipated interest rate cuts.
According to Jonathan Samuels, Chief Executive of Octane Capital, the second quarter of this year saw a notable 7.7% rise in mortgage options for first-time buyers. This increase reflects growing lender confidence in the housing sector.
Buy-to-let landlords have also benefited from the expanding mortgage market, with a 6.2% rise in product availability over the past three months and a 2.5% increase since December. Currently, buy-to-let mortgages represent 20% of all mortgage products on the market.
Home movers and remortgagers have similarly enjoyed a boost in mortgage options, with quarterly increases of 5.6% and 3.2%, respectively. Compared to the end of last year, home movers have seen a 10.8% rise in available products, while remortgagers have experienced a 9% increase.
“We’re yet to see interest rates fall despite inflation now seemingly under control,” said Samuels. “Given the prolonged period of economic uncertainty and the Bank of England’s cautious approach, it’s no surprise that it’s been deemed too early to cut rates.”
“The good news is that since the base rate has been held at 5.25%, a greater degree of stability has returned to the mortgage sector and the wider property market. As a result, lenders have been increasing the number of products available to all buyer segments. This greater level of choice not only benefits buyers but also demonstrates confidence in the market,” Samuels added.
This growing array of mortgage products suggests that lenders are optimistic about the future of the housing market, providing more options and opportunities for buyers across various segments.
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