The shelf life of mortgage products reaches an all-time high

The average time a mortgage product will stay on the market is currently 17 days, according to Moneyfacts.

This is a new high, shorter than the previous low which was only reached in June this year.

At the same time, Moneyfacts warns that the average rate for a five-year period has now risen for the tenth consecutive month, reaching 4.08% – thus exceeding 4% for the first time since October 2014.

And the average rate for a two-year fix also rose for the tenth month in a row, and at 3.95%, this is the highest rate Moneyfacts has seen since February 2013, when the rate was 4. 09%.

In addition, the average standard variable rate (SVR) also rose to a recent high of 5.17% – the highest since December 2008, when it stood at 5.68%.

Moneyfacts finance expert Eleanor Williams comments: “Following a statement from the Financial Conduct Authority last week urging eligible borrowers to consider their mortgage options and switch to a more cost effective deal in order to save money in Wherever possible, Moneyfacts data shows that those considering a new mortgage may wish to act quickly to achieve this.

“Mortgage availability has fallen again this month, admittedly reducing at a less dramatic pace than last month. August began with 4,407 mortgages in supply, 149 less than at the beginning of July, which means that the level of choice for borrowers has fallen again.

Not only are there now fewer offers for borrowers to choose from, but the average shelf life of mortgage offers has dropped to a new low of just 17 days this month.

This reflects the speed at which providers update their offers, but also means that those looking for a new mortgage have the shortest time we have ever recorded trying to secure their chosen deal.

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