Act quickly if you want to secure the best deal

Latest data from Rightmove reveals that the number of potential buyers contacting estate agents about properties since 1 August was 19% higher than the same period in 2023. By contrast, buyer demand was only 11% higher in July than the previous year.

Meanwhile the number of homeowners putting their property on the market also grew by 5% compared to last year.

With over 6,500 mortgage products to choose from for those that need help with finance using a mortgage broker is essential if you want to act quickly and be able to secure the best deal.

On that front both 2 and 5-year fixed rate products remain the most popular deals to choose from. 

Average 2 and 5-year fixed mortgage rates have been falling month-on-month by 0.18% and 0.15% respectively, halting five months of consecutive rises latest data from Moneyfacts reveals.

The overall average 2 and 5-year fixed rates fell between the start of July and the start of August, to 5.77% and 5.38% respectively with the average 2-year fixed rate some 0.39% higher than the 5-year equivalent – a trend that has been in play since October 2022.

Meanwhile the average 2-year tracker variable mortgage has risen slightly to 5.95% and the average ‘revert to’ rate or Standard Variable Rate (SVR) has fallen to 8.16%, slightly less than the highest recorded (8.19%) during November and December 2023.

Mortgage volatility has been rampant over the summer months with a swathe of lenders re-pricing due to falling swap rates and expectations of a further cut in interest rates in September following the last rate cut of 0.25%. That cut was the first in over four years and while pundits remain split on the next course of direction conditions do look favourable for further downwards action.

Rachel Springall, Finance Expert at Moneyfacts, says: “The rise and fall of product choice was significant during July; the total count peaked at 6,949 on 19 July before falling to 6,621 just four days later.

“Choice slowly rose in the coming days to sit at 6,657 on 1 August, just one product shy of July’s total product count (6,658).

“The only increases in availability were seen in the lower 60% and 75% loan-to-value (LTV) brackets in August. At the other end of the LTV spectrum, in contrast to a prior rise in choice between June and July, the number of mortgages available at 95% LTV fell slightly by the start of August.

“However, the biggest month-on-month drop within any LTV bracket was at 80% LTV, which fell by 53 products, dropping to the lowest level since March 2024. This may come as disappointing news to borrowers with a limited deposit or equity, but choice could well bounce back in the coming months as lenders reassess their approach to lending at these higher LTV brackets.”

And she adds: “It is essential that borrowers move quickly to acquire a new deal if they are looking to refinance this year or buy a property for the first time.

“Seeking advice from an independent broker is wise, particularly to keep abreast of the churn in products.

“The average Standard Variable Rate (SVR) is around 8% so the incentive to switch deals either to a fixed or tracker mortgage is clear. A variety of lenders priced their lowest rate deals even lower still over the past few weeks, leading to the return of sub-4% fixed rates towards the end of July, but borrowers must look beyond the initial rate and assess any mortgage based on the overall true cost.”