"The good news is that since the base rate has been held at 5.25%, a greater degree of stability has returned to the mortgage sector and the wider property market"
- Jonathan Samuels - Octane Capital
CEO of Octane Capital, Jonathan Samuels, says that the growing level of mortgage product availability in recent months suggests that confidence is growing across the sector, with this confidence only likely to strengthen as an interest rate cut looms.
Octane Capital tracks the number of mortgage products available across the sector and how this level of availability differs by buyer segment.
The latest figures show that during the second quarter of this year, mortgage product availability has climbed across the board, as the sector has continued to find its feet following a freeze on the base rate in September of last year.
First-time buyers have benefited from the greatest increase in choice, with a 7.7% increase in the number of mortgage products available between March and June of this year.
Current product availability also sits some 12% higher than it did at the end of last year (Dec 23), however, first-time buyer products still only account for 7.1% of all mortgage products available in the current market.
Buy-to-let landlords have also seen a considerable increase in mortgage product availability, with a 6.2% increase in the last three months, also up 2.5% since December. As a result, buy-to-let mortgage products now account for a fifth of all products in the current market.
Home movers (5.6%) and remortgagers (3.2%) have also benefited from a quarterly uplift in product availability, with both segments of the market also seeing substantially more choice versus the end of last year, with respective increases of 10.8% and 9%.
CEO of Octane Capital, Jonathan Samuels, commented: “We’re yet to see interest rates fall despite inflation now seemingly under control, but given the prolonged period of economic uncertainty that has enveloped the nation and the Bank of England’s cautious approach in managing it, it’s no surprise that it’s been deemed too early to cut rates.
"The good news is that since the base rate has been held at 5.25%, a greater degree of stability has returned to the mortgage sector and the wider property market.
"As a result, lenders have been increasing the number of products available to all buyer segments and this greater level of choice not only benefits buyers, but demonstrates confidence in the market.
"With a rate cut on the horizon, it’s shaping up to be a far stronger year for the property sector and we’ve already seen signs of a return to form emerging since the start of the year.”
