Increase in 3-year fixed mortgages

The number of 3-year fixed mortgage products available from lenders has been rising over the last few months as borrowers coming to the end of their mortgage deal continue to try and navigate their next steps.

The number of 3-year fixed products on the market has increased by 100% since June.

According to Defaqto, the UK’s most trusted source of financial product and market intelligence, the number of fixed rate mortgage products available on the market today is over 2,500.

Number of mortgage products between June and September 2023

Date	House Purchase	First Time Buyer	Remortgage	TOTAL
05/06/2023	625	671	740	2036
03/07/2023	566	594	725	1885
07/08/2023	685	711	806	2202
04/09/2023	729	781	903	2413
28/09/2023	775	827	957	2559

**These figures are based on the best fixed rates widely available on a loan of £150,000 (excludes any restricted products).

The number of 3-year fixed mortgages meanwhile has risen from 196 in June to 337 today (28 September) - an increase of 100%.

Number of 2-year, 3-year and 5-year fixed mortgages available

Date	2 Year-fixed	3 Year-fixed	5 Year-fixed
05/06/2023	811	196	1029
03/07/2023	724	264	897
07/08/2023	830	325	1047
04/09/2023	913	337	1163
28/09/2023	966	393	1200

Katie Brain, Consumer Banking Expert at Defaqto, said: “Some borrowers might be viewing a 3-year fixed term mortgage as the balance they need in order to still get a slightly preferential rate but without the same level of commitment as longer deals. With such volatility in the market place it’s still extremely difficult for people to predict what would serve them best but having increased options from lenders is positive for homeowners.”

Mortgage Best Buys

In further positive news for borrowers, we’re continuing to see more fixed rates drop below 5% with 12 lenders now offering rates below this:

Bank of Ireland (NI)

Bank of Ireland4Intermediaries

Danske Bank

HSBC

Monmouthshire Building Society

Nationwide Building Society

NatWest

NatWest Int Sols

Royal Bank of Scotland

Santander

Virgin Money

Yorkshire Building Society

This follows the Defaqto mortgage best buys released today (28 September) which includes another three products under 5%.

Today’s Mortgage Best Buys from Defaqto

House Purchase

Term	LTV	Provider	Product	Initial Rate Payable	Fees Payable
2 Year	65%	Virgin Money	2yr 5.74% Fixed LTV 65%	5.74%	£0
	75%	Virgin Money	2yr 5.74% Fixed LTV 75%	5.74%	£0
	80%	NatWest	2yr 5.42% Fixed LTV 80%	5.42%	£1,495
	85%	MPowered Mortgages	2yr 6.07% Fixed LTV 85%	6.07%	£0
	90%	MPowered Mortgages	2yr 6.17% Fixed LTV 90%	6.17%	£0
	95%	Nationwide Building Society	Flex 2yr 6.60% Fixed LTV 95%	6.60%	£0
3 Year	60%	Nationwide Building Society	Flex 3yr 5.65% Fixed LTV 60%	5.65%	£0
	75%	MPowered Mortgages	3yr 5.49% Fixed LTV 75%	5.49%	£999
	80%	Vernon	3yr 5.50% Fixed LTV 80%	5.50%	£0
	85%	MPowered Mortgages	3yr 5.58% Fixed LTV 85%	5.58%	£999
	90%	MPowered Mortgages	3yr 5.78% Fixed LTV 90%	5.78%	£999
	95%	Generation Home	3yr 6.38% Fixed LTV 95%	6.38%	£0
5 Year	65%	Virgin Money	5yr 4.82% Fixed LTV 65%	4.82%	£1,295
	75%	Virgin Money	5yr 4.82% Fixed LTV 75%	4.82%	£1,295
	80%	NatWest	5yr 5.12% Fixed LTV 80%	5.12%	£995
	85%	Virgin Money	5yr 5.09% Fixed LTV 85%	5.09%	£1,295
	90%	NatWest	5yr 5.14% Fixed LTV 90%	5.14%	£1,495
	95%	HSBC	5yr 5.79% Fixed LTV 95%	5.79%	£0

Remortgage

Term	LTV	Provider	Product	Initial Rate Payable	Fees Payable
2 Year	60%	NatWest	2yr 5.30% Fixed LTV 60%	5.30%	£1,495
	75%	First Direct	2yr 5.74% Fixed LTV 75%	5.74%	£490
	80%	MPowered Mortgages	2yr 6.02% Fixed LTV 80%	6.02%	£0
	85%	MPowered Mortgages	2yr 6.07% Fixed LTV 85%	6.07%	£0
	90%	MPowered Mortgages	2yr 6.27% Fixed LTV 90%	6.27%	£0
	95%	Nottingham Building Society	2yr 6.58% Fixed LTV 95%	6.58%	£499
3 Year	65%	MPowered Mortgages	3yr 5.69% Fixed LTV 65%	5.69%	£0
	75%	MPowered Mortgages	3yr 5.50% Fixed LTV 75%	5.50%	£999
	80%	Vernon	3yr 5.50% Fixed LTV 80%	5.50%	£0
	85%	MPowered Mortgages	3yr 5.65% Fixed LTV 85%	5.65%	£999
	90%	Generation Home	3yr 6.07% Fixed LTV 90%	6.07%	£0
	95%	Generation Home	3yr 6.38% Fixed LTV 95%	6.38%	£0
5 Year	60%	First Direct	5yr 5.08% Fixed LTV 60%	5.08%	£490
	75%	Yorkshire Building Society	Flexi 5yr 4.99% Fixed LTV 75%	4.99%	£1,495
	80%	First Direct	5yr 5.29% Fixed LTV 80% Direct	5.29%	£490
	85%	Leeds Building Society	5yr 5.35% Fixed LTV 85%	5.35%	£0
	90%	Skipton Building Society	5yr 5.46% Fixed LTV 90%	5.46%	£0
	95%	Generation Home	5yr 5.85% Fixed LTV 95%	5.85%	£0