The lifespan of a mortgage on the market has dramatically decreased, now almost half of what it was just a month ago, Moneyfacts reports.
As of early June, mortgages are being withdrawn after an average of 15 days, plummeting from 28 days at the beginning of May, according to the financial information service.
This June statistic marks the shortest average duration noted by Moneyfacts since March, with the record low being 12 days in July 2023.
These figures are based on data collected on the first day of each month.
Despite the reduced availability period, there’s been a surge in the number of mortgage products available, reaching a peak not seen in over 16 years.
At the start of June, Moneyfacts recorded 6,629 mortgage options, a number not witnessed since February 2008 when 6,760 deals were available.
Finance expert Rachel Springall from Moneyfacts commented: “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 uplift in rates, there was another rise in the overall product availability of residential mortgages, standing at its highest point in 16 years.”
“As lenders reviewed their ranges, which included repricing, launches and withdrawals, the moves led to the average shelf-life of a mortgage plummeting to 15 days, down from 28 days at the start of May.”
“Year-on-year the overall availability of mortgages has risen by 1,662 deals, and within that pool of products, there are 156 more at 90% loan-to-value (LTV) and 124 more at 95 percent LTV.”
“These rises are good news for borrowers who may be struggling to build a big enough deposit to secure a new deal.”
Moneyfacts also released figures showing the average two-year homeowner mortgage rate on the market on Monday is 5.96 percent, having edged up from 5.95 percent on Friday last week.
The last time the average two-year fix was at six percent or above was on December 7, when the figure was 6.01 percent.
Average two-year fixes were as high as 6.85 percent in early August last year.
The average five-year fixed residential mortgage rate on Monday is 5.52 percent, which is unchanged from Friday.
Ms Springall continued: “Consumers concerned about rising 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.”
“However, there may well be some borrowers sitting on the fence, hoping the market gets a base rate cut this year, but they could still grab a lower rate deal than if they were to sit on their SVR (standard variable rate) without fixing, such as with a tracker deal.”