Average “shelf-life” of UK mortgage halved in a month

mortgage

At the start of June, the average mortgage spent just 15 days on the market, down from 28 days at the start of May, according to Moneyfacts

The average “shelf-life” of a UK mortgage has almost halved in a month, according to new data, as lenders raise rates on home loans.

According to financial information website Moneyfacts, at the start of June, the average mortgage spent just 15 days on the market, down from 28 days at the start of May.

The June figure marks the shortest shelf-life logged since March. The lowest figure on Moneyfacts’ records is 12 days in July 2023.

While mortgages are typically spending less time on the market, the number of products to choose from soared over the month to its highest in more than 16 years.

Moneyfacts logged 6,629 product choices at the start of June, the highest number since February 2008 with 6,760 deals.

Rachel Springall, finance expert at Moneyfacts, said: Lenders spent the first few weeks of May repricing, in reaction to a volatile swap rate market, but the latter end of the month was more subdued, around the time the government announced there would be a general election in July.

She added: Despite the small rise in rates, there was another rise in the overall product availability of residential mortgages, standing at its highest point in 16 years.

Mortgage rates are influenced by SONIA swap rates, which reflect what lenders think will happen to interest rates in the future. The BoE is not expected to reduce interest rates until August or September, with markets lowering their bets since the start of the year.

Moneyfacts added that the overall average two and five-year fixed mortgage rates increased between the start of May and the start of June, to 5.93% and 5.50% respectively. The last time the average two-year rate was 6% or above was on 7 December.

Springall said: Consumers concerned about increasing rates would be wise to seek advice from an independent broker to see if they can lock into a deal early, as some will let borrowers do this from three to six months in advance.

Disclaimer: The opinions expressed by our writers are their own and do not represent the views of Getting Money Wise. The information provided on Getting Money Wise is intended for informational purposes only. Getting Money Wise is not liable for any financial losses incurred. Conduct your own research by contacting financial experts before making any investment decisions.

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