The firm identified a “worrying trend” of mortgages becoming more expensive of late, noting the example of the price of an average two-year fixed rate at 75% loan-to-value, which has jumped from 2% six months ago to 2.33% today.

Defaqto also highlighted the fall in the overall number of products available.

Back in January homebuyers had 2,477 products from which to choose, but that has plunged by 55% since then, leaving just 1,099 products on the market today. And it suggested that first-time buyers are the subset of homebuyers who are being most adversely affected by the trend.

Katie Brain, banking expert at Defaqto noted that the escalating levels of demand for home loans means that lenders are in a more attractive position, and do not need to offer the “incredibly low rates” seen earlier this year, adding: “This could be the beginning of an upward trend in mortgage rates, as we are seeing rates creep up across the board.”

“For anyone looking to get a mortgage right now, it is a particularly difficult time as the market is constantly changing with some deals only available for a few days at a time. It is worth remembering that interest rates are still at historically low levels.

“Although rates may have been cheaper a few months ago, they are still much lower than they were two years ago.  It is best to be prepared and to seek independent financial advice to get the right product for your personal circumstances.”