The number of available mortgage products currently on the market is sitting 41% below the level seen this time last year, analysis by Octane Capital has shown.

According to the research, there are an estimated 5,398 different mortgage products currently available to UK homebuyers, with first-time buyers (2,631) and home movers (2,569) enjoying slightly more choice than those looking to remortgage (2,302).

However, the analysis by Octane Capital revealed there is considerably less choice for homebuyers on the hunt in the lead up to Christmas when compared to this time last year.

The specialist property lender looked at the level of mortgage products available in the current market and how this compares to historic levels. The findings revealed that the total number of products has reduced by 41% year-on-year, with those looking to remortgage being hit with the biggest reduction in product choice (-37%).

Home movers and first-time buyers have seen the level of products available reduce by 31% and 29% respectively.

Despite this year-on-year drop, Octane Capital’s analysis also revealed that the level of products available is still up by 18% when compared to this time two years ago at the height of the market boom amid the pandemic. First-time buyers are still benefiting from a 45% increase in product choice compared to 2020, while home movers (+38%) and those looking to remortgage (+20%) are also better off than they were two years ago.

Commenting on the findings, Octane Capital CEO, Jonathan Samuels, said: “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.”

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