Mortgage product choice dropped for the second month in a row in March, while average rates continued to tick up, fresh Moneyfacts data shows.

The total number of fixed and variable rate products available on the market went from 5,356 in February to 4,838 this month.

And the average two-year fix across all LTVs jumped from 2.44% to 2.65%, while the average five-year fix across all LTVs rose from 2.71% to 2.88%.

Additionally, the average standard variable (SVR) rate grew by 15 basis points this month, to 4.61%. This is the largest single monthly rise for this rate on record, “with many providers not yet having amended theirs following the first back-to-back base rate rises since June 2004.”

This means that the average two-year fix is 1.96% below the average SVR rate.

“The two-year average is now the highest it has been in over six years (Nov 2015 was at 2.67%) and at 2.88%, the five-year equivalent was last this high in April 2019, at 2.88%,” says Moneyfacts finance expert Eleanor Williams.

She continues: “The level of product choice took a nose-dive this month, reducing by 518 deals. This is the biggest monthly drop in mortgage availability since May 2020, [when the number fell by] 626 during the mass product withdrawals recorded in the early stages of the pandemic.”

Williams warns: “While factors beyond lenders’ control are uncertain, as the cost of living crisis continues and economic conditions are volatile, to mitigate the risk of default, it could be that providers may tighten their lending belts even further moving forwards.”