Recent figures published by various lenders have indicated that the number of mortgage products on the UK market has reached around 2,500 for the first time since May 2009. This is due partly to one of the biggest lenders, Halifax, offering new rates to existing mortgage-holders.

The increase has been for the third month running, and although the progress is good news for potential mortgage-holders looking for the best deals, the figure remains a long way below the 30,000 different mortgages that were available before the credit crunch hit in August 2007. Nevertheless, the direction of travel remains an encouraging one.

The picture is not so rosy when it comes to remortgages though. Many lenders are staying away from the remortgages market and many analysts believe that this state of affairs will remain in place until at least next year. The reason for this is that mortgage companies are mainly focusing on lending for initial property purchases, partly because the UK government has put in place targets for them to hit requiring such loans to be made.

The other main reason for the hiatus in the remortgages market is the tendency of existing homeowners to sit tight and reap the benefits of low interest rates for as long as they remain advantageous. As these homeowners approach the end of their fixed-term mortgage deals, they are clearly tempted to remain with their lenders reversion rates, as these are tied to the base rate of interest.

The Council of Mortgage Lenders (CML) has confirmed this analysis, revealing that during January 2010 the number of approved remortgages fell by 6 per cent compared to the previous month making a total of 39 per cent year-on-year. The CML said that the mortgage market currently resembles the one that was in place at the beginning of the previous decade, rather than the bullish market of the late 2000s.

Anyone considering remortgages at all is looking forward to 2011, when interest rates are likely to rise. However, there have been claims from banking giant Santander that more than 880,000 UK homeowners currently on fixed rate or tracker mortgages may be seeking remortgages within the next six months, based on its Remo Index.

According to the research, many people who are approaching the end of their deals within this period are unlikely to choose a new tracker mortgage because of fears that interest rates will rise.