Good news is they just have to wait a few more weeks for better luck in January
Expect fewer options in the mortgage market by Christmas time this year.
The latest analysis by specialist lender Octane Capital has revealed that the number of products currently available is 41% below the level seen this time last year, with this number anticipated to further dwindle towards the end of the year.
The lender’s research shows that there are an estimated 5,398 different mortgage products currently available to the nation’s homebuyers, with first-time buyers (2,631) and home movers (2,569) enjoying slightly more choice than those looking to remortgage (2,302).
However, historical data comparison shows that there is considerably less choice for homebuyers on the hunt this festive season when compared to this time last year.
The total number of products available has reduced by 41% year on year, with those looking to remortgage being hit with the biggest reduction in choice (-37%), although home movers and first-time buyers have seen the level of products available reduce by 31% and 29% respectively.
Still, the level of products available today is still up by 18% when compared to this time two years ago at the height of the pandemic market boom. In fact, first-time buyers are still benefiting from a 45% increase in product choice versus 2020, with home movers (+38%) and remortgagers (+20%) also better off than they were two years ago.
“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,” Jonathan Samuels (pictured), chief executive at Octane Capital, commented. “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.”
Samuels pointed out that 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,” he said. “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.”
