Mortgage hunters are getting more time to secure a deal, with the average offer now lasting twice as long as it did just a month ago.
Back in June, you had a tiny window of just 15 days to lock in a mortgage offer. But hold onto your hats, because that’s now doubled to 30 days, according to the Moneyfacts UK Mortgage Trends Treasury Report. To put that in perspective, a year ago, the average shelf-life was a record low of just 13 days!
More Choice for Borrowers
And it gets better! Not only are deals sticking around for longer, but there are also more to choose from. The number of mortgage products available hit 6,658 at the start of July, the highest it’s been since the heady days of February 2008.
This means more competition between lenders, which is great news for you. It gives you more options to compare and potentially snag a better deal.
Here’s a quick breakdown of the key changes:
- Shelf-life doubled: Mortgage offers now last an average of 30 days, up from 15 days in June.
- More deals on offer: The number of mortgage products available rose to 6,658 in July, the highest since 2008.
- More 95% LTV deals: The number of deals for buyers with a 5% deposit hit its highest level since May 2022.
Rate Rise Continues, but There’s Hope on the Horizon
The only fly in the ointment is that average mortgage rates continued their upward creep in July. The average two-year fixed rate inched up to 5.95%, while the average five-year fixed rate reached 5.53%.
But don’t despair! Experts predict that interest rates may start to fall later this year. Plus, even with the recent increases, average rates are still lower than they were a year ago.
What Does This Mean for You?
If you’re thinking about buying a home or remortgaging, now might be a good time to start exploring your options.
Here’s what you should do:
- Shop around and compare deals: With more products on the market, it pays to compare rates and find the best deal for you.
- Speak to a mortgage broker: An independent broker can help you navigate the market and find a mortgage that suits your circumstances.
- Don’t panic if your fixed-rate deal is ending: While it’s tempting to stick with your current lender, switching to a new deal could save you money in the long run.
While affordability remains a concern for many, the increased choice and stability in the mortgage market offer a glimmer of hope for homebuyers and those looking to remortgage.