The number of remortgage products at 90% LTV has dropped from 189 in March to just 34, research from Defaqto has revealed.
The financial services expert suggested the fall means that borrowers will have fewer options to choose from and may find that lenders are more picky about applicants meeting their criteria.
Defaqto reported that estate agents had seen a 70% uplift in enquiries the day after the freeze on the property market was lifted, although with the mortgage market shrinking during lockdown, Defaqto also suggested property hunters may have to work twice as hard to find a mortgage as they will to find a home.
While there are fewer mortgage products available now than before lockdown, Defaqto still described rates as “very good”. The group’s research showed that with the base interest rate falling in March, the best 5-year fixed deal is now just 1.99% compared to 2.28% three years ago.
The number of fixed products available for remortgage customers has also shrunk from 1003 in March to 657, which Defaqto said would mean borrowers have less choice and may need to work harder to satisfy lenders’ criteria – but may also be able to save hundreds of pounds a month by doing so.
Defaqto banking expert, Katie Brain, commented: “For those looking to get on the housing ladder, this could offer a rare opportunity to get a home at a good price and get cheap finance on it too. While buyers and sellers will need to follow government guidelines to ensure viewings are done safely, this could be a real opportunity for some.
“For homeowners looking to cut costs, this could be a good time to remortgage. The range of products available has shrunk but the rates are at an all-time low, which could translate to some serious savings for those looking to fix.
“We are still in such uncertain times and anyone looking to apply for a mortgage should speak to a financial adviser who can assess their needs and recommend an appropriate product.”
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