Mortgage products staying on the shelf for longer

Mortgage products staying on the shelf for longer

05 May 2010 / by Lois Avery

Mortgage lenders are keeping their products available for longer, sparking speculation that the volatile market is coming to an end, says moneyfacts.co.uk.

According to research from moneyfacts.co.uk the average shelf life of a current mortgage deal now stands at 30 working days, nearly doubling from 17 days in March.

Products on offer in April were available for the longest period since August 2007, when the market was bursting at the seams with nearly 10,000 mortgage deals.

And 26 per cent less product rate changes took place between March and April this year, suggesting that the mortgage industry is getting ready for a resurgence.

Although, moneyfacts.co.uk has also said that the slowdown could mean that lenders are waiting to see what intentions a new government may have for the mortgage industry following Thursday’s election

Darren Cook, spokesperson at Moneyfacts.co.uk, commented:  “The extended shelf life of a mortgage product to 30 days coupled with falling average rates clearly demonstrates that parts of the market have become static.

"Only a few lenders are making significant cuts to their rates and competing for limited mortgage business.

 “A platform is developing and is getting ready for a resurgence of the market, but lending figures show us that there is still a lack of motivation from either new borrowers or lenders to transact in the current climate”

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