The latest research carried out by Moneyfacts has found that the amount of time on average that mortgage products stay on the market has fallen to a record low.
This research found that, on average, products are staying available to borrowers for 17 days at the moment. That is the shortest period of time on record, with the previous low having been hit during June 2022. What it means in practice is that mortgage advisors are under more pressure than ever at the moment to identify suitable products and complete applications while they remain available.
Furthermore, Moneyfacts is also pointing out that the short lifespan of products is coinciding with frequent rate rises. Its research shows that the average rates on fixed five-year mortgages have gone up for 10 successive months and currently stand at 4.08%. That is the first time they have been higher than 4% in eight years.
Fixed two-year mortgage rates have also risen for the past 10 months in succession, leaving them on 3.95% right now. That is the highest such rate recorded by Moneyfacts since early in 2013.
Speaking to Mortgage Strategy, Eleanor Williams from Moneyfacts said that shopping around was the best bet for borrowers, but added:
“Not only are their now fewer deals for borrowers to choose from, but the average shelf life for mortgage deals has plummeted to a new low of just 17 days this month.”
Advisors with CeMAP training are more vital than ever in this landscape of rising rates and narrowing product options.