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Mortgage choice falls as deals are pulled from sale

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Rachel Springall, Press Officer
Rachel Springall, Press Officer / Finance Expert 01603 476210 Email Rachel
30/05/2023

Mortgage choice falls as deals are pulled from sale

Borrowers comparing mortgage options may notice lenders have pulled deals from sale. The latest analysis from Moneyfactscompare.co.uk reveals the reduction in product choice across both the residential and buy-to-let sector and the impact on average mortgage rates.

Mortgage choice falls as deals are pulled from sale

Borrowers comparing mortgage options may notice lenders have pulled deals from sale. The latest analysis from Moneyfactscompare.co.uk reveals the reduction in product choice across both the residential and buy-to-let sector and the impact on average mortgage rates.

  • Within the residential mortgage sector: Bank of Ireland UK, Bath Building Society, Furness Building Society, Newcastle Building Society, Halifax, Hinckley & Rugby Building Society, Kensington, LendInvest, Marsden Building Society, MPowered Mortgages, Principality Building Society, Scottish Building Society and Vernon Building Society pulled selected fixed mortgage products over the past few days. Aldermore, Foundation Home Loans and Tipton & Coseley Building Society have pulled their entire fixed rate range.
  • Since the start of last week, the number of mortgages has fallen from 5,385 deals to 5,012.
  • The average rate on a two- and five-year fixed mortgage has risen to 5.38% and 5.05% respectively since the start of May 2023.

 

  • Within the residential mortgage sector: Bank of Ireland UK, Bath Building Society, Furness Building Society, Newcastle Building Society, Halifax, Hinckley & Rugby Building Society, Kensington, LendInvest, Marsden Building Society, MPowered Mortgages, Principality Building Society, Scottish Building Society and Vernon Building Society pulled selected fixed mortgage products over the past few days. Aldermore, Foundation Home Loans and Tipton & Coseley Building Society have pulled their entire fixed rate range.
  • Since the start of last week, the number of mortgages has fallen from 5,385 deals to 5,012.
  • The average rate on a two- and five-year fixed mortgage has risen to 5.38% and 5.05% respectively since the start of May 2023.

 

Mortgage market analysis

 

May-22

Oct-22

May-23

22-May-23

Today

Average two-year fixed mortgage

3.03%

5.43%

5.26%

5.34%

5.38%

Average five-year fixed mortgage

3.17%

5.23%

4.97%

5.01%

5.05%

Fixed and variable rate products - Total product count - all LTVs

5,087

2,258

5,264

5,385

5,012

Data shown is as at the first available day of the month, unless stated otherwise.

Source: Moneyfactscompare.co.uk

 

Mortgage market analysis

 

May-22

Oct-22

May-23

22-May-23

Today

Average two-year fixed mortgage

3.03%

5.43%

5.26%

5.34%

5.38%

Average five-year fixed mortgage

3.17%

5.23%

4.97%

5.01%

5.05%

Fixed and variable rate products - Total product count - all LTVs

5,087

2,258

5,264

5,385

5,012

Data shown is as at the first available day of the month, unless stated otherwise.

Source: Moneyfactscompare.co.uk

 

Rachel Springall, Finance Expert at Moneyfactscompare.co.uk, said:

“Borrowers searching for a new deal may well be concerned about the latest developments in the mortgage market. Over the past few days, we have seen a few lenders withdraw selected fixed products, with some pulling out of the market, at least temporarily. Product choice has started to fall, and as may be expected, average fixed mortgage rates are on the rise. This volatility is down to the concerns surrounding future interest rate hikes, and lenders are reassessing their propositions. Consumers looking to refinance will find rates around 5% on average for a fixed deal, compared to around 3% a year ago. It is vital borrowers seek advice to assess the situation and to find a mortgage that suits their circumstances.”

Meanwhile, the buy-to-let market has also seen lenders pull fixed deals, and average rates are on the rise.

  • Within the buy-to-let mortgage sector: Precise Mortgages, Kensington, Kent Reliance and Marsden Building Society have pulled selected fixed mortgage products over the past few days. Aldermore, Bank of Ireland UK, CHL Mortgages, Fleet Mortgages, Foundation Home Loans and The Mortgage Lender have pulled their entire fixed rate range.
  • Since the start of last week, the number of buy-to-let mortgages has fallen from 2,748 deals to 2,343. The average rate on a two- and five-year fixed buy-to-let mortgage has risen to 5.61% and 5.52% respectively since the start of May 2023.

 

Rachel Springall, Finance Expert at Moneyfactscompare.co.uk, said:

“Borrowers searching for a new deal may well be concerned about the latest developments in the mortgage market. Over the past few days, we have seen a few lenders withdraw selected fixed products, with some pulling out of the market, at least temporarily. Product choice has started to fall, and as may be expected, average fixed mortgage rates are on the rise. This volatility is down to the concerns surrounding future interest rate hikes, and lenders are reassessing their propositions. Consumers looking to refinance will find rates around 5% on average for a fixed deal, compared to around 3% a year ago. It is vital borrowers seek advice to assess the situation and to find a mortgage that suits their circumstances.”

Meanwhile, the buy-to-let market has also seen lenders pull fixed deals, and average rates are on the rise.

  • Within the buy-to-let mortgage sector: Precise Mortgages, Kensington, Kent Reliance and Marsden Building Society have pulled selected fixed mortgage products over the past few days. Aldermore, Bank of Ireland UK, CHL Mortgages, Fleet Mortgages, Foundation Home Loans and The Mortgage Lender have pulled their entire fixed rate range.
  • Since the start of last week, the number of buy-to-let mortgages has fallen from 2,748 deals to 2,343. The average rate on a two- and five-year fixed buy-to-let mortgage has risen to 5.61% and 5.52% respectively since the start of May 2023.

 

Buy-to-let market analysis

 

May-22

Oct-22

May-23

22-May-23

Today

Average two-year fixed BTL mortgage

3.41%

5.57%

5.56%

5.58%

5.61%

Average five-year fixed BTL mortgage

3.56%

6.05%

5.52%

5.55%

5.52%

Fixed and variable rate BTL products - Total product count - all LTVs

3,374

988

2,715

2,748

2,343

Data shown is as at the first available day of the month, unless stated otherwise.

Source: Moneyfactscompare.co.uk

 

Buy-to-let market analysis

 

May-22

Oct-22

May-23

22-May-23

Today

Average two-year fixed BTL mortgage

3.41%

5.57%

5.56%

5.58%

5.61%

Average five-year fixed BTL mortgage

3.56%

6.05%

5.52%

5.55%

5.52%

Fixed and variable rate BTL products - Total product count - all LTVs

3,374

988

2,715

2,748

2,343

Data shown is as at the first available day of the month, unless stated otherwise.

Source: Moneyfactscompare.co.uk

 

Rachel Springall, Finance Expert at Moneyfactscompare.co.uk, said:

“Landlords will be disappointed to see a drop in product choice and that average fixed rates are on the rise. The volatility surrounding interest rates towards the tail end of 2022 started to improve, but as it stands, average rates are expected to keep climbing because of the ongoing concerns over future interest rate hikes. Buy-to-let product choice dropped below 1,000 deals in October last year, in the aftermath of the fiscal announcement, so it will be a concerning echo of that period if choice plummets to such a low again. Interest rates are only part of the decision-making process when entering a buy-to-let investment, so it is always wise to seek advice to ensure it is the right time to commit to a deal.”

Rachel Springall, Finance Expert at Moneyfactscompare.co.uk, said:

“Landlords will be disappointed to see a drop in product choice and that average fixed rates are on the rise. The volatility surrounding interest rates towards the tail end of 2022 started to improve, but as it stands, average rates are expected to keep climbing because of the ongoing concerns over future interest rate hikes. Buy-to-let product choice dropped below 1,000 deals in October last year, in the aftermath of the fiscal announcement, so it will be a concerning echo of that period if choice plummets to such a low again. Interest rates are only part of the decision-making process when entering a buy-to-let investment, so it is always wise to seek advice to ensure it is the right time to commit to a deal.”

Notes to editors

Pioneering financial comparison technology for over 35 years.

Moneyfacts Group plc is the UK’s leading provider of retail financial product data. Used by virtually every bank and building society in the UK, and supplied to the Bank of England, Financial Conduct Authority, Financial Ombudsman Service, HM Treasury, Prudential Regulatory Authority and UK Finance.

Our expert research team monitors the thousands of mortgages, savings, credit card, personal loan, business banking, life, pension and investment products in the UK.

Moneyfactscompare.co.uk is the financial product price comparison site, launched as Moneyfacts.co.uk in 2000 and rebranded to Moneyfactscompare.co.uk in 2023, which helps consumers compare thousands of financial products, including credit cards, savings, mortgages and many more. Unlike other comparison sites, Moneyfactscompare.co.uk shows whole of market data regardless of commercial bias, showing consumers a true picture of the best products based on the criteria they select.

We hope you find this press release insightful. We would appreciate a link back to Moneyfactscompare.co.uk if you decide to source this information.

For more information about us please see our key facts.

Broadcast

Our broadcast suite enables our finance experts to appear in-vision for television, and we regularly comment live on national and regional radio.

To arrange an interview for radio or television, please contact our press department. We have an in-house broadcast room.

 

Notes to editors

Pioneering financial comparison technology for over 35 years.

Moneyfacts Group plc is the UK’s leading provider of retail financial product data. Used by virtually every bank and building society in the UK, and supplied to the Bank of England, Financial Conduct Authority, Financial Ombudsman Service, HM Treasury, Prudential Regulatory Authority and UK Finance.

Our expert research team monitors the thousands of mortgages, savings, credit card, personal loan, business banking, life, pension and investment products in the UK.

Moneyfactscompare.co.uk is the financial product price comparison site, launched as Moneyfacts.co.uk in 2000 and rebranded to Moneyfactscompare.co.uk in 2023, which helps consumers compare thousands of financial products, including credit cards, savings, mortgages and many more. Unlike other comparison sites, Moneyfactscompare.co.uk shows whole of market data regardless of commercial bias, showing consumers a true picture of the best products based on the criteria they select.

We hope you find this press release insightful. We would appreciate a link back to Moneyfactscompare.co.uk if you decide to source this information.

For more information about us please see our key facts.

Broadcast

Our broadcast suite enables our finance experts to appear in-vision for television, and we regularly comment live on national and regional radio.

To arrange an interview for radio or television, please contact our press department. We have an in-house broadcast room.

 

Contact Us If you're looking for extra comment, a chart or more information, then please give us a call. We are always more than happy to help.
Rachel Springall Press Officer / Finance Expert
Caitlyn Eastell Apprentice Press & PR Assistant