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January Saw the Greatest Mortgage Choice for 11 Months Posted: 24th February 2021

In January, borrowers had the highest number of mortgages to choose from since March 2020 according to figures released by Moneyfacts. In a further sign that the mortgage market is stabilising, the number of days for which individual mortgages are available before lenders withdraw them rose from 28 days in January to 40 days.

There was a raft of new deals available with 3,215 mortgages to choose from, including fixed rate and tracker mortgages – the highest number in nearly a year, when the first national lockdown was implemented across the UK when there were 5,222 mortgages available. This number is continuing to rise as we head towards spring.

Since October 2020, the number of mortgages available has increased by 42%. This is the largest four-monthly rise in choice since in 13 years.
When we went into a national lockdown in March 2020, mortgage choice fell dramatically as the property market closed to all those except people currently moving, and lenders withdrew their mortgages while they assessed the risks of lending during the pandemic.

First time buyers

First time buyers with small deposits were hit the hardest with 90% of mortgages for those with a 10% deposit were withdrawn between March and the end of June. The good news is that choice is once again improving, especially for those with small deposits. Lenders are less risk averse and stable interest rates have increased competition in the mortgage market.

For first time buyers with a 10% deposit the number of deals available quadroupled during the last four months, and interest rates have fallen. A two-year fixed rate loan for someone borrowing 90% of their home’s value dropped 0.09% in January, while the cost of a five-year fixed rate deal dropped 0.07%.

For those with a 5% deposit, choice remains very limited with just five deals available in January.

Existing homeowners

Things are also looking up for home-movers and people looking to remortgage their property. The number of available deals has significantly increased, with nearly 500 different mortgages available for people borrowing 60% of their home’s value in January. In addition, the cost of a mortgage has reduced for people with large equity stakes of at least 40% in their home.

Interest rates for a two-year fixed rate mortgage for home movers fell 0.05%, while rates on five-year fixed rate deals fell 0.07%.

Whatever your reason for moving; whether it's for extra space, to downsize or you may simply have found your dream home, Nicol can help. Our knowledge of the local property market helps us develop a marketing plan that's right for you and your property.
We want our clients to be delighted with the service we provide. Listening to your needs and understanding your requirements is our starting point. To find out more about our approach to selling homes, download our comprehensive Guide to Selling your Property here.
If you are planning on selling your home, contact Nicol Estate Agents today for an appraisal of your property. Our Managing Director Douglas Nicol and Sales Manager Daniel Cohen carry out hundreds of market appraisals every year, giving them an intimate and unparalleled knowledge of the property market in Glasgow, from city centre apartments to family homes and building plots. We will talk to you about the property market in your area, compare sales evidence, local demand for similar properties, outline our tailored marketing plan and provide details of our sales support strategy right through to completion.