"Since April 2009, when the number of products on the mortgage market hit an all-time low of 1,209, the residential mortgage market has seen product numbers grow substantially."
With the number of live deals increasing by 53 from last month, August marks the 15th month in a row in which product numbers have increased.
The total number of mortgage products has risen from 3,814 in August 2016 to 4,657 today.
Numbers have been boosted by several lenders entering the three-year fixed rate market, which saw the number of deals increase by 48 products to 439.
Charlotte Nelson, Finance Expert at Moneyfacts, said: “This month’s boost to product numbers represents 15 months of consecutive increases in residential mortgages and sees the number of deals pass the 4,500 mark. Since April 2009, when the number of products on the mortgage market hit an all-time low of 1,209, the residential mortgage market has seen product numbers grow substantially. In fact, the number of deals on the market has increased by 61% in just five years.
“The talk of an impending base rate rise means that borrowers are starting to look at their options to protect themselves from a potential rise in monthly repayments. Since a five-year fixed rate can be too long for some, a three-year deal can bridge the gap for those wary of fixing for longer. Providers, knowing this, are tapping into this previously underdeveloped market.
“With the average three-year fixed rate standing at 2.54% in August, borrowers will need to decide whether the extra year’s security is worth a 0.31% premium compared to the average two-year rate of 2.23%."
