Events such as the national Covid lockdown and the Autumn Budget 2022, proved that product choice can overcome market turmoil, Moneyfacts data reveals.
Mortgage product choice more than halved between 1 March 2020 and 1 May 2020, plummeting from 5,222 deals to just 2,566.
The nationwide lockdown, which started on 23 March 2020, had an “unprecedented impact on product choice for borrowers”, according to Moneyfacts.
Data also found that between 1 September 2022 and 1 October 2022, the mortgage market noted its biggest monthly drop of product choice since the pandemic.
During this time, there was a drop of 1,632 deals, down from 3,890 to 2,258.
However, the latest figures show that as of 1 April 2025, there are 6,870 mortgages on the market.
Moneyfacts finance expert Rachel Springall says: “There is an abundance of choice for mortgage borrowers, and there is a big expectation for lenders to do more to stimulate UK growth.”
“The positive recovery in mortgage choice comes after a dramatic five years of ups and downs. Mortgage product choice nosedived after the UK entered lockdown in March 2020, with over 2,000 deals lost, more than halving the number of residential mortgages on sale between the start of March and May 2020.”
“Lenders sought to support their existing customers amid the crisis, such as those unable to work or furloughed. On the other hand, lenders reined in their intentions to lend out to new buyers, such as first-time buyers with small deposits as they reassessed their level of risk, but as a result it took five years for the quantity of deals at 95% loan-to-value to recover. “
“Overall, it took several months for overall product choice to breach 5,000 options, (November 2021 – 5,156).”
“As time marched on, both the UK and the mortgage market started to get back to business, and the Bank of England base rate eventually rose from its record low of 0.10% to 0.25% in December 2021.”
“Several base rate increases followed as inflation started to rise at a worrying pace, but no-one was prepared for market turmoil soon to come.”
“During the latter part of 2022, product choice saw another damaging monthly fall, of 1,632 deals between September and October 2022, which came as the fiscal announcement, or ‘mini-Budget’, was delivered on 23 September 2022.”
“Six months later, choice breached 5,000 deals and the number of deals at 95% loan-to-value breached 200.”
“The market today for borrowers with limited deposits has improved, and despite the end of Stamp Duty Land Tax (SDLT) relief last month, lenders have been working hard to entice new business, with some even offering cashback in the thousands to support buyers.”
“Affordability remains a key issue for buyers, so saving for a large deposit can still feel like an uphill struggle, so choosing the right savings account is essential.”
