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Thriving choice for borrowers with small deposits

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Moneyfacts UK Mortgage Trends Treasury Report data reveals a thriving choice of mortgage options. Mortgages available at 95% loan-to-value stand at the highest point since before the fiscal announcement of September 2022.

  • The number of deals at 95% loan-to-value (LTV) has risen to its highest point (254) since before the fiscal announcement (274 deals at the start of September 2022). The number of options at 90% LTV rose month-on-month and stands at its highest count (709) since February 2022 (735).
  • Product choice overall rose month-on-month, for a fourth consecutive month, to 5,678 options, the highest level of availability in over 15 years. The last time there were more deals available was March 2008 (6,192 products).
  • The average shelf-life of a mortgage product rose to 20 days, which is its highest since June 2023 (22 days). This has now increased for four consecutive months from a low of 12 days in July, which was the shortest average shelf-life on Moneyfacts’ records.
  • Average fixed mortgage rates across all LTV tiers on two- and five-year fixed rate deals fell for a third consecutive month.
  • The overall average two- and five-year fixed rates fell between the start of October and the start of November, to 6.29% and 5.86% respectively. The average two-year fixed rate stands at 0.43% higher than the average five-year equivalent, a narrower gap than the 0.50% difference last month.
  • The average ‘revert to’ rate or Standard Variable Rate (SVR) rose once more. At 8.19%, this rate is at the highest level on Moneyfacts’ electronic records (starting July 2007).
  • The average two-year tracker variable mortgage rate fell month-on-month to stand at 6.15%.
Mortgage market analysis
Fixed and variable rate productsTotal product count – all LTVs5,1563,1175,2645,4955,678
Product count – 95% LTV316141212252254
Product count – 90% LTV667398675648709
Product count – 60% LTV587340676585619
All productsShelf-life (days)2717251620
All LTVsAverage two-year fixed rate2.29%6.47%5.26%6.47%6.29%
Average five-year fixed rate2.59%6.32%4.97%5.97%5.86%
95% LTVAverage two-year fixed rate3.22%6.59%5.94%6.74%6.55%
Average five-year fixed rate3.51%6.35%5.28%6.08%5.93%
90% LTVAverage two-year fixed rate2.54%6.45%5.50%6.39%6.25%
Average five-year fixed rate3.02%6.24%5.08%5.78%5.91%
60% LTVAverage two-year fixed rate1.49%6.28%4.83%6.16%5.94%
Average five-year fixed rate1.71%6.08%4.57%5.65%5.47%
All LTVsStandard Variable Rate (SVR)4.41%5.86%7.37%8.18%8.19%
All LTVsAverage two-year tracker rate2.03%3.69%5.07%6.17%6.15%
Data shown is as at the first available day of the month, unless stated otherwise. 
Source: Moneyfacts Treasury Reports

Rachel Springall, Finance Expert at Moneyfacts, said: 

“The growing choice of mortgage options demonstrates a buoyant period for the market as the year end edges closer. Borrowers with a limited deposit or equity of just 5% may be pleased to find more choice of deals in this sector. The number of deals at 95% loan-to-value (LTV) has risen to its highest point since before the fiscal announcement of September 2022, with 254 deals compared to 274 at that time, which plummeted a month later to 132 options. However, if borrowers can stretch their budget by another 5%, they will find more than 700 options at 90% LTV, which is its highest count since February 2022 (735).


Reduced volatility in the market from lenders during October was prevalent, with the average shelf-life of deals rising to 20 days on average, up from 16 days a month previously – edging further away from the record low of 12 days that was recorded in July 2023. These are promising signs that the market is settling and could result in more time for borrowers to take advantage of new offers. However, there is no telling how long this may last, as there are growing expectations for fixed rates to fall further, and this could impact the shelf-life of competitively priced deals. Lenders will need to carefully balance their pricing and consider any end-of-year targets they expect to hit.

Fixed rates on average have now dropped for the third consecutive month and both the average two- and five-year fixed rates stand at their lowest points since June 2023. Year-on-year, the market has seen substantial recovery when it comes to choice, but there is still more room for improvement for those borrowers waiting for fixed rates to fall further before they secure a new deal. It is imperative borrowers approach their lender for support if they are struggling to keep up with repayments and seek independent advice to go through all the options available to them.”

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