The latest research from Moneyfacts has revealed that the average length of time mortgage products stay on the market has dropped to a record low.
This research revealed that, on average, products remain available to borrowers for 17 days at present. This is the shortest period on record, with the previous low having been reached in June 2022. This means in practice that mortgage advisers are under more pressure than ever at the moment to identify suitable products and fulfill the requests while they remain available. .
Additionally, Moneyfacts also points out that the short lifespan of the products coincides with frequent rate hikes. His research shows that average five-year fixed mortgage rates have risen for 10 consecutive months and currently stand at 4.08%. This is the first time that they have exceeded 4% in eight years.
Two-year fixed mortgage rates have also risen for the past 10 consecutive months, leaving them at 3.95% at this time. This is the highest rate recorded by Moneyfacts since the beginning of 2013.
Speaking to Mortgage Strategy, Eleanor Williams of Moneyfacts said shopping around was the best bet for borrowers, but added:
“Not only do borrowers now have fewer choices to choose from, but the average mortgage shelf life has dropped to a new low of just 17 days this month.”
CeMAP-trained advisors are more essential than ever in this landscape of rising prices and shrinking product options.