Mortgage availability up by more than 50%

Figures published by Moneyfacts shows that mortgage availability soared by 53%, suggesting that lenders are confident that demand for homes will remain strong in the coming months.

The data shows that the number of mortgages for residential property at the beginning of May had climbed for a seventh consecutive month to 3,927.

This represented a 53% year-on-year rise, taking the number of mortgage products on the market to its highest total since March last year.

At the start of May 2021, the number of Loan to Value (LTV) products on the market had almost tripled year-on-year from just 41 available deals to 112 at the beginning of May this year.

According to the statistics, the average ‘shelf line’ of a mortgage deal increased by 32 days, which could potentially be another indicator of stability in the residential property market.

Commenting on the surge in mortgage availability, Vikki Jefferies, proposition director at Primis Mortgage Network, told FT Advisor: “There is clearly great momentum from lenders to return to the high LTV space – not forgetting those who have signed up to the government’s 95 per cent mortgage guarantee scheme – which is good news for first-time buyers and younger borrowers who are looking for low deposit mortgages.”

HSBC UK were among the lenders refreshing its mortgage range, making rate cuts across all its LTV products. The bank cut it rates by up to 0.30%, making it cheaper for people to get onto or move up the property ladder.

In March 2021, HSBC reported its busiest ever month for mortgage applications.

If you are thinking about taking advantage of the surge in mortgage products and rate cuts, you might be interested in purchasing a property at auction. Check out the lots we have confirmed for our next property auction.