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Mortgage lenders show confidence

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There are now more mortgage deals available than since the start of the Coronavirus pandemic began impacting the UK economy last March, MoneyFacts has reported.

Its latest UK Mortgage Trends Treasury Report, found that there are currently 3,215 mortgage deals available, the highest number yet since March. Then there were 5,222 deals in the market.

The biggest rise in deals over the last few months is in 90 per cent loan to value deals.

While average mortgage interest rates have risen across all LTVs, the average for two and five year 90 per cent LTV fixed mortgages fell month-on-month from 3.65 per cent and 3.79 per cent in January to 3.56 per cent and 3.72 per cent in February respectively.

 ‘Those with 10 per cent deposit or equity might be especially pleased to note that this tier has, for a second month, seen the largest uplift in availability. With products at this level often favoured by first-time buyers and traditionally being seen as higher risk for providers, willingness to extend lending in this risk bracket could be an indication that lenders have confidence in the sector, despite ongoing, wider economic uncertainty’, said Moneyfacts’ Eleanor Williams.

‘This is echoed by the average two and five year fixed rates at 90 per cent LTV seeing the largest fall of all the lending tiers, reducing by 0.09 per cent and 0.07 per cent’.