41% fewer mortgage products under the tree for homebuyers this Christmas

The latest mortgage market analysis by specialist property lending experts, Octane Capital, has revealed that those looking to scour the market for a mortgage this Christmas will be facing a considerably lower level of choice, with the number of products currently available sitting 41% below the level seen this time last year. 

Octane Capital analysed the level of mortgage products available in the current market and how this compares to historic levels. 

The 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, the analysis by Octane Capital 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. 

But while this may seem like a notable reduction in choice, the analysis by Octane Capital also shows that the level of products available 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. 

CEO 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.”