Homebuyers are benefiting from a surge in mortgage product availability, with increased competition among lenders potentially paving the way for lower borrowing costs, latest research from Alexander Hall reveals.

The study examined the estimated number of mortgage products available across different market segments and tracked changes both since the Autumn Budget and over the past year.

The findings suggest that mortgage seekers now have significantly more options, a development that could drive lenders to adjust their pricing strategies in the months ahead.

BUY-TO-LET BOOST

Buy-to-let investors have seen the most substantial increase in mortgage product availability, with 2,220 products currently on offer – up 12.9% annually and 7.9% since the Autumn Statement in October.

First-time buyers have also experienced a notable expansion in choice, with 694 products now available, representing a 2.7% increase since the Autumn Budget and an 11% rise year-on-year.

Home movers have not been left behind, with mortgage product availability climbing 4.8% since the Autumn Budget, while those looking to remortgage have benefited from a 4.7% increase in options.

Despite the Bank of England beginning to lower interest rates, mortgage rates remain stubbornly high, with average rates still around 8% higher than a year ago.

NOTABLE IMPROVEMENT

Stephanie Daley (main picture), director of partnerships at Alexander Hall, said: “Whilst Bank of England rates have started to reduce, we’re yet to see any notable improvement with respect to mortgage rates. However, the good news for homebuyers is that mortgage product availability has improved and there is now a greater degree of choice, with more options available to them even in the few short months since the Autumn Budget.”

First-time buyers, in particular, are benefiting not only from increased product numbers but also from more lenders offering higher income multiples to address affordability challenges.

Halifax’s First-time Buyer Boost and Nationwide’s expanded Helping Hand proposition, which now includes home movers, are among the initiatives easing entry onto the housing ladder.

CREATIVE SOLUTIONS

Meanwhile, lenders such as Skipton and Accord are providing creative solutions for lower deposit options, ensuring that prospective buyers have more avenues to homeownership than they might have previously considered.

The surge in product availability has sparked speculation that heightened competition among lenders could lead to a reduction in mortgage rates.

Daley added: “With more products available, lenders will be facing increased competition and may be more inclined to lower rates in order to win business. This highlights the importance of getting a whole-of-market view before deciding on a mortgage and consulting a well-renowned mortgage adviser to ensure the best deal.”