Mortgage deal shelf life at ‘record’ low – expert shares ‘imperative’ checks to make | Personal Finance | Finance

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Mortgage market volatility appears to remain rife as recent analysis by money comparison site Moneyfacts shows lenders are pulling products at record speed. The shelf life for an average fixed rate mortgage deal has fallen from 17 days in December to 15 days this month.

Rachel Springall, finance expert at Moneyfacts, said: “Product choice within the mortgage market has improved in recent months, and the latest figures show volumes are at a much more stable level, however, the volatility with lenders adjusting such deals remains as the average shelf life of a mortgage product fell to 15 days, the joint lowest on Moneyfacts records.

“This activity has led overall fixed rates to fall and indicates the focus of lenders’ repricing strategies.”

The deals available on the mortgage market typically come with a shelf-life and once this is met, lenders will pull the deals and replace them with a different rate or terms.

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But, Ms Springall noted: “It is clear that both these average rates stand higher compared to a year ago, with notable rises during the tail end of 2022 during a time of unprecedented uncertainty surrounding interest rates.”

According to Moneyfacts’ analysis, average rates of higher loan-to-value brackets are also falling.

Although, Ms Springall said: “More improvement would be welcomed for those with a limited deposit, considering the average two-year fixed rate mortgage at 95 percent loan-to-value sits above six percent.”

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She continued: “As existing mortgage holders weigh up their refinancing plans and others debate their home purchase desires in 2023, it is imperative they seek independent financial advice to go through the options available to them.

“The cost of living crisis and inflated interest rates over recent months may well impact borrowers’ intentions of getting a new deal.

“However, it is anticipated that fixed interest rates will fall further in the months to come to entice new business.”

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