A new mortgage market analysis by Octane Capital claims that the number of mortgage products available have dropped 41%, compared to the usual levels during this time of year.
The level of mortgage products available in the current market was analysed and then compared to previous levels. In total, there are an estimated 5,398 different mortgage products currently available to the nation’s homebuyers.
The findings show that those looking to remortgage have the least choice, as this sits at roughly 2,302. First-time buyers have around 2,631 choices to pick from while home movers have 2,569 to select from.
Fewer choices during the festive season
Remortgage products have had a -37% reduction in choice while home movers have seen the level of products available reduce by 31% and 29% respectively.
Despite this being a significant reduction, the level of products available is still up by 18% compared to this time two years ago. At that stage the covid-19 pandemic was in full effect, having a notable impact on all the housing market
Octane Capital highlight that first-time buyers are still benefiting from a 45% increase in product choice compared to 2020. Home movers were identified as better off by 38% and remortgages 20% more than they were two years ago.
Chief executive office of Octane Capital, Jonathan Samuels, commented: “Much has been made about the reduction in available mortgage products in the last month or so and a high degree of market uncertainty has spurred many lenders to reduce their range until such time that the fog has lifted.”
“As a result, there continues to be substantially less choice for the nation’s homebuyers who may be searching the market this Christmas. However, the shelves aren’t as barren as the figures may suggest and there remains a good deal more products currently available when compared to 2020.”
“At the same time, those lenders who have reduced their range have largely done so with a strategic reset in mind. Now that rates have started to once again reduce and confidence is returning to the sector, we can expect an uplift in product availability come the new year.”
“So for those who aren’t able to find the right mortgage this side of Christmas, it’s worth sitting tight for a few more weeks, as chances are, you’ll have better luck in January.”
