In July 2007 there were 28,413 mortgage products available, which fell to 2,177 in July 2009.
However, there has been an improvement in the last year with the total number of mortgage products growing 42 per cent since July 2009. The number of products on the market has broken the 3,000 barrier for the first time since July 2009, with the total number currently sitting at 3,100.
The most significant growth has been in five-year fixed products, which have increased ten-fold since June 2009.
Moneysupermarket.com mortgage manager Hannah-Mercedes Skenfield says: “The financial crisis really hit the mortgage market hard with the number of products falling by a massive 92 per cent. After a period of uncertainty in the market, in 2010 we have started to see confidence return, and although we are still a long way off the highs of 2007, it is encouraging for consumers that banks and building societies are starting to return to the market.
“Over the past couple of months we have also started to see some relaxation in the number of products for borrowers with small deposits, with a number of lenders reintroducing products offering 85 and 90 per cent mortgages. Good news particularly for first time buyers.
“I expect the upward trend in the number of products to continue so if you are looking for a mortgage, now is a good time as there is more choice.”