The number of first-time buyer mortgage products has fallen by more than a quarter since the end of Q1 2023, research from Barrows and Forrester reveals.

The estate and lettings agent analysed UK mortgage interest rates and product availability across multiple industry sources.

The research covers four mortgage categories – buy-to-let (BTL), remortgage, first-time buyer (FTB), and moving home.

Of the four, interest rates for BTL mortgages have increased most since the end of Q1, rising by 0.81% to 4.5%.

The cost of remortgage products has increased by 0.24% to 4.03%, while FTB and remortgage rates have risen by 0.23% and 0.03% respectively.

However, the number of products available to first timers has seen the biggest reduction of any category.

Barrows and Forrester says there are currently an estimated 412 first-time buyer products on the market, a 25.6% reduction since the end of Q1.

The most products are currently available for moving home mortgages (2,270) despite recording a 15.9% decline since the end of Q1.

Meanwhile, the number of remortgage products stand at 2,207 despite recording the biggest drop of 16.2% compared to last quarter.

Barrows and Forrester managing director James Forrester says the findings show buyers face ‘a variety of different challenges’ in today’s market.

“For example, first-time buyers are going to be severely restricted by the small number of products available to them which will prevent many from securing a mortgage,” he says.

“Lenders appear much more comfortable providing variety for those who already have a foot on the ladder, but even they are having to deal with cost increases and a significantly reduced selection of products.”

He warned things could get even harder for buyers, but adds the current situation isn’t as severe as the market turmoil experienced in the 90s and more recently, 2007.

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