The number of mortgage products available within the market has undergone a steep drop in comparison to the same period in 2022, new Octane Capital research has revealed.
This research indicates that a drop of 41% in the available choice of products has occurred compared with the end of 2021. There are currently around 5,398 mortgage products on offer to borrowers within the UK market. It is those looking to buy their first home that have the widest choice right now, as there are 2,631 products catering to them. For movers there are 2,569, while for people who want to remortgage their homes, the number is 2,302.
The drop in product numbers is a clear indicator that the economy as a whole is in a worse condition than at this time last year. Remortgage product numbers have experienced the sharpest year-on-year drop-off, by 37%. Products for first-time homebuyers have fallen by 29% and for home movers it is 31%.
Looking at the longer-term picture things are not quite as bleak as they may immediately seem though. The research by Octane Capital shows that product numbers remain 18% above what they were at the end of 2020.
Its CEO Jonathan Samuels told Financial Reporter that:
“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.”
Those with CeMAP training will be watching for that, as wider product choice makes it easier for them to assist their clients.
