Alexander Hall analysed the current mortgage market by reviewing product availability, average rates and how conditions compare with December last year

The latest research from award-winning mortgage adviser Alexander Hall shows that this Christmas is shaping up to be a more positive one for homebuyers, despite the Autumn Budget failing to introduce any direct affordability measures.

Alexander Hall analysed the current mortgage market by reviewing product availability, average rates and how conditions compare with December last year. The findings show improvements across all borrower types, with greater choice and lower borrowing costs now available.

Mortgage product availability has increased across the market, with the most significant uplift seen in buy-to-let. Despite ongoing regulatory changes, including the introduction of the Renters’ Rights Act, the number of buy-to-let mortgage products is up 68% compared with last Christmas.

First-time buyers have seen product availability increase by 23% year on year, while remortgagers and home movers have recorded smaller increases of 5% and 3% respectively.

First-time buyers are benefiting from rates that are around 0.6% lower than last year, while average rates for home movers and remortgagers have dropped by 0.42% and 0.34% respectively.

Alexander Hall also examined what these changes mean in practice for a typical buyer purchasing at the current average UK house price of £272,998.

Although house prices have increased by 1.3% over the past year, requiring a marginally higher 15% deposit of £40,950 compared with £40,414 last December, lower rates mean monthly costs are still materially lower.

Richard Merrett, managing director of Alexander Hall, said: While the Autumn Budget may have disappointed buyers hoping for direct support, the reality is that market conditions this Christmas are considerably more favourable than they were a year ago.

We’ve seen a steady expansion in mortgage product availability and a meaningful reduction in rates across every major borrower group and, for the average homebuyer, this translates into lower monthly repayments and greater flexibility when choosing a mortgage, he said.