Average Shelf Life of a Mortgage Reduces by Almost Half
![Average shelf life of a mortgage reduces by almost half Average shelf life of a mortgage reduces by almost half](/images/2024/06/jpg/average-shelf-life-of-a-mortgage-reduces-by-half--720.jpg)
The mortgage landscape is shifting rapidly, and the latest Moneyfacts report highlights a significant change: the average shelf-life of a mortgage has plummeted to just 15 days, down from 28 days last month. This swift turnover is driven by mortgage lenders frequently adjusting rates, a trend that has become increasingly common in recent times.
Rising Fixed Rates
It's a tough pill to swallow for many mortgage borrowers as both two- and five-year fixed rates have risen. As of early June, the average rates stand at:
- Two-year fixed rate: 5.93%
- Five-year fixed rate: 5.50%
The gap between these rates is now 0.43%, the widest it has been since October 2023. This widening gap indicates a significant shift in lender strategies and market expectations.
Tracker Rates and Market Reactions
Interestingly, the average two-year tracker variable mortgage saw a slight decrease, now at 5.94%. This movement suggests some variability and opportunities within the mortgage market, despite the general trend of rising fixed rates.
In the first few weeks of May, lenders were quick to reprice their rates in response to the volatile swap markets. However, this flurry of activity slowed somewhat towards the end of the month following the announcement of the general election, introducing a period of relative calm.
Increased Mortgage Availability
On a brighter note, the availability of residential mortgages has reached its highest level in the last 16 years. This increased availability is a positive sign for potential borrowers, offering more options despite the challenging rate environment.
The Importance of Expert Guidance
Given the ever-changing market conditions, seeking the assistance of a mortgage consultant is more important than ever. With their expertise, you can navigate these fluctuations effectively and find the best possible mortgage options tailored to your needs.
Our experienced mortgage consultants are ready to assist you with personalised guidance every step of the way. For an initial consultation, speak with our experts or call us at 01628 564631. We're here to help you navigate your mortgage journey with informed advice and care.
Take the first step towards securing your mortgage today.
The information contained within was correct at the time of publication but is subject to change.
Your mortgage is secured on your property. Your property may be repossessed if you do not keep up repayments on your mortgage.
Source: Moneyfacts