Mortgage availability has increased for a third consecutive month, with product choice rising by 45 deals to 7,177 options.
The market continued its recovery from the severe withdrawals caused by unsettled markets due to the conflict in the Middle East.
But there are still 307 fewer deals compared to the start of March 2026.
Mortgage product churn continued throughout June, the average shelf-life of a deal now stands at 14 days, one day fewer than the month prior.
Rachel Springall, Finance Expert at Moneyfacts, says: “Mortgage product choice recovery from the steep drops seen back in April may have slowed, with an uplift of 45 options since the beginning of June, but it is the combined total of 976 deals returning since the start of May that calls for celebration.
“This equates to around three-quarters (76%) of mortgage deals coming back of the 1,283 products withdrawn in April.
“Stability appeared to be a recurring theme during June, with the average shelf-life of a deal recorded at 14 days, from 15 days the month before.
“This is a much more acceptable timeframe compared to the record low of eight days recorded at the start of April.
“Borrowers with just a small deposit or equity of 10% may be pleased to know that further recovery of product choice at 90% LTV has surpassed 900 options for the first time since the start of March 2026.
“However, there is still room for improvement across the higher LTV terms, particularly for borrowers who can only amass a 5% deposit; these deals make up just 8% of the core market (5,848).”
Government data shows fixed mortgage rates have recorded their biggest monthly reductions since October 2024.
Fixed mortgage rates dropped for a consecutive month, citing the biggest monthly reductions since October 2024, with the average two- and five-year fixed rates falling by 0.16% and 0.11% respectively, with both reaching 5.52%, their lowest points since the start of March 2026.
The downward trend edges the rates away from inversion, where the two-year average rate has been priced higher than the five-year rate for three consecutive months (April to June).
The average five-year fixed rate at 95% loan-to-value (LTV) has dipped below 6% for the first time since March 2026.
Ian Harris, NAEA Propertymark President at Propertymark, comments: “Any fall in mortgage rates should help boost flexibility for both buyers and sellers, and it could perhaps be a sign that the UK housing market is overcoming what may be the worst of the mortgage rate rises witnessed in recent years.
“However, with inflation figures due next week, all eyes will likely turn to the Bank of England and its next base rate decision at the end of the month. There has been speculation that we may see a rate rise over the coming months, which could shift sentiment among lenders as the year progresses.
“Also, the appointment of a new Prime Minister could create uncertainty among buyers and sellers due to potential changes in housing policy going forward.
“So, while today’s news is welcome, it is important to consider the wider economic picture and the many different scenarios that could play out over the coming weeks and months.”
