The number of mortgage product choice has fallen by over half since the start of March, while average rates have also dropped significantly, shows new data from Moneyfacts.

The number of mortgage products across the whole of the market stood at 5,222 in March this year. By May it had dropped to 2,566.

The most startling drop in product numbers lie at the high LTVs. For example, 95 per cent LTV five-year fixed rate product choice fell from 142 to 11 – or 92 per cent – and 95 per cent LTV two-year fixed rate product numbers dropped from 137 to 11, which is a 92 per cent fall.

At 75 per cent LTV, product numbers have fallen by around 30 per cent.

Alongside this dip in product numbers is a corresponding dip in average rates.

Across all LTVs, the average two-year fixed rate dropped from 2.43 per cent to 2.09 per cent within the same time frame, and the five-year fixed rate from 2.74 per cent to 2.35 per cent – a decrease of 0.34 per cent and 0.39 per cent, respectively.

Within the two-year fixed rates, 75 per cent LTV rates dropped from 2.29 per cent to 1.97 per cent –a 0.32 per cent difference, and the average 90 per cent LTV rate from 2.57 per cent to 2.40 per cent – a 0.17 per cent change.

At 95 per cent LTV, rates increased from 3.26 per cent to 3.36 per cent.

This pattern repeats at five-year fixed rates: at 75 per cent LTV there was a drop of 0.36 per cent (from 2.56 per cent to 2.20 per cent) and at 90 per cent LTV a drop of 0.26 per cent (from 2.91 per cent to 2.65 per cent). At 95 per cent, the average rate moved up from 3.58 per cent to 3.62 per cent.

Moneyfacts finance expert Eleanor Williams says: “This recent, precipitous fall in product numbers can in part be attributed to lenders initially needing to focus operational resource on supporting their existing customers and managing the volume of mortgage payment holiday requests rather than looking to take on further new business.

“It is also likely that this fall is as a result of government guidance around delaying house purchasing and the social distancing measures in place effecting the ability of surveyors to provide valuations, and indeed on estate agents and potential buyers alike having difficulty in attending viewings.

“We are now beginning to see lenders relaunching products within their ranges, and some providers have eased the LTV caps they put in place early in the crisis. Mortgage lenders are still open for business and, for those eligible, rates are low.

“Therefore, those wanting to begin the process of remortgaging, or indeed purchasing, should speak to their lender or an independent, qualified adviser, in order to lock into a low rate now, or lay the groundwork to put themselves in a strong position to move forwards when the market rebounds.”