The total number of mortgage products on Twenty7Tec’s system stood at 7,356 on 30 September, down from 15,196 on 1 October last year, a decrease of 51.6%.
Mortgage products available on Twenty7Tec’s system peaked in April reaching 18,542.
In the days following Chancellor Kwasi Kwarteng’s tax-cutting statement on Friday, a range of large and small lenders have pulled all or part of their residential and buy-to-let loans.
Moneyfacts revealed that on Tuesday this week a record 935 home loans were withdrawn from the market, more than double the previous highest fall of 462 products on 1 April 2020 at the start of the pandemic lockdowns.
Halifax Intermediaries said by the end of Tuesday all products in its homebuyer range that charge a fee – including shared equity and green products – will be removed.
Kensington removed most of its residential and BTL options and Keystone pulled all of its product offerings as a temporary measure.
BM Solutions withdrew its buy-to-let (BTL) and let-to-buy mortgages that charge a fee, Clydesdale Bank took a selection of new business deals off the market, West One pulled its entire fixed-rate BTL catalogue, and The Nottingham for Intermediaries repriced a number of its offerings.
However, on 27 September, Twenty7Tec said it handled 101,620 queries for the first time on its platform, a 14.3% increase on the previous day.
Twenty7Tec director of customer relationships Nathan Reilly says the increase was driven by the remortgage market, which accounted for 54.6% of the market, well above its 45% long-term average.
He comments: “The drop in product availability is likely to be a short-term measure as lenders reassess the market, economic situation and any operational challenges that could arise if they return before their peers.”
“Positively, we’re already seen that a number of lenders have completed this assessment and are lining up gradual returns. This is likely to result in an increase in products next week.”
Moneyfacts finance expert Rachel Springall explains: “Borrowers would be wise to keep calm over the current volatility in the mortgage market and seek advice from an independent broker. Various lenders have been very vocal that their decision to withdraw products is a temporary measure, amid the uncertainty over interest rates.”
Indeed, some lenders have already relaunched previously withdrawn products.
For example, earlier this week, Clydesdale Bank withdrew all its products for new customers, but today the lender has reintroduced its £1m plus 65% LTV to 85% LTV two-year fixed rates from 5.10%.
The lender also announced that all its fixed products in its product transfer range will see new rates increased, starting from 4.49%.
Meanwhile, Kensington withdrew all its products – excluding the flexi fixed for term 60% LTV, 75% LTV and 85% LTV products – at the close of business on 29 September but has also announced that is it planning to relaunch products with new pricing from today, 30 September.
Coreco managing director Andrew Montlake adds: “It was re-assuring to see lenders start to return to the market after the briefest of sojourns from some lenders. Yes, the products are substantially higher than they were, but the fact they are returning, with more set to in the coming week, shows that this is a short-term pricing issue rather than a long-term funding issue.”
“There are still a couple of lenders who are yet to sort themselves out, but they will do in time, and we appreciate all those lenders who have stuck with brokers, honoured their pipeline and communicated well in exceptionally difficult times.”
