Research by Moneyfacts showed that the number of different mortgage deals available had soared to 1624 from 1209 in April, but this still remains some way short of the 15,599 on offer in July 2007.

The largest product increase has been seen in two-year fixed-rate mortgages, with the number of deals jumping from 250 in April to 405 now. The availability of three-year fixed rates has also increased by more than a fifth, but the expansion of the longer-term fixed-rate market has occurred at a more pedestrian rate, with just 38 more products available than in April.

Michelle Slade, spokeswoman for Moneyfacts, said: “In such uncertain times, borrowers and lenders alike seem to prefer shorter-term deals, which can be changed relatively quickly if market conditions alter dramatically. Borrowers’ love affair with shorter-term deals means lenders benefit from the increased frequency with which arrangement fees become payable.”