The property market is currently presenting a challenging landscape for first-time buyers, with a 3.4% reduction in the availability of mortgage products over the last quarter, Octane Capital reports.
In contrast, the buy-to-let sector is experiencing a growth spurt, with an 8.8% increase in product offerings for landlords during the same period.
This trend highlights a widening gap in mortgage product accessibility, with first-time buyers now having only 595 options, representing just 7% of the total market. This marks the largest decrease in availability across all mortgage types.
Meanwhile, home movers have also seen a slight decrease in their options, with a 1% drop, though they still have access to around 3,000 products. Remortgaging individuals are faring better, with a 1% increase in available products, making up 37% of the market.
Landlords, on the other hand, have seen a significant boost in their choices, with 1,889 buy-to-let mortgage products now available, reflecting the sector’s resilience and growth potential.
Jonathan Samuels, CEO of Octane Capital, said: “Generally speaking, there has been a growing level of buyer confidence since the Bank of England held the base rate for a third consecutive time in December.
“That said, while the general expectation is that interest rates will fall this year, many lenders are continuing to tread with caution and this is why we’ve seen a reduction in the number of mortgage products available to both first-time buyers and home movers.
“This is because those looking to buy for the first time, or borrow more to move further up the ladder, are often more susceptible to the potential affordability issues caused by higher mortgage rates.
“However, this reduction in product availability hasn’t been seen across the entire sector and buy-to-let investors, in particular, are currently benefiting from an increased level of choice when borrowing.”
