The mortgage market faces a notable drop in product availability, as detailed in the latest Moneyfacts report.
- The number of mortgage products has decreased significantly, reaching just 6,402 options, the lowest in over a year.
- The average shelf-life of mortgage products has shortened to 17 days, down from 21 days last month.
- The average two-year fixed rate experienced a slight dip, whereas the five-year rate saw a minor increase.
- Borrowers need to act swiftly amidst the market’s volatility and changing rates, as emphasised by financial expert Rachel Springall.
The Moneyfacts Mortgage Trends Treasury Report reveals a significant decline in mortgage product choices, now standing at 6,402, marking the largest drop in over a year. This change signifies a major shift in the mortgage landscape, necessitating prompt action from prospective borrowers.
The life span of a mortgage product has also been affected, decreasing to an average of 17 days from 21 days. Such a reduction highlights the necessity for borrowers to act quickly to secure favourable deals before options expire.
In terms of interest rates, the average for a two-year fixed mortgage slightly decreased by 0.01% to 5.39%. In contrast, the five-year fixed rate inched up by 0.02% to 5.09%, indicating a shift in long-term borrowing trends. Additionally, the two-year tracker variable mortgage rose to 5.71%, while the Standard Variable Rate (SVR) declined to 7.95%.
Finance expert Rachel Springall points out the pressing need for borrowers to move swiftly in the current fluctuating market. ‘These moves make it essential for prospective borrowers to act quickly to secure a new deal,’ she advises, especially for those transitioning from cheaper rates. The anticipation of a fall in the Bank of England’s base rate introduces further uncertainties.
Springall also notes the rising swap rates following the Budget, prompting lenders to potentially increase fixed rates. This highlights the critical role lenders play in supporting borrowers amidst mortgage affordability issues, and the importance of securing new deals proactively.
The current mortgage market environment calls for timely action from borrowers amidst fluctuating product options and rates.
