Desperate to get a mortgage? You’d better act fast! The average time you have to snag a great deal has plummeted to just 15 days, according to the Moneyfacts UK Mortgage Trends Treasury Report. That’s down from a whole month just last month!
Is this bad news? Well, kind of. It means you have to be extra quick to secure a good offer before it disappears. But there’s some good news too.
Rates Still Rising, But Slowly
The average two- and five-year fixed rates did creep up a tiny bit – a measly 0.02% each. That’s the smallest monthly rise all year!
So, if you’re thinking about fixing your mortgage, don’t panic just yet.
Big Gap Between 2 and 5 Year Rates
However, there’s a huge difference between those two-year and five-year fixed rates. The average two-year fixed rate is now 0.43% higher than the five-year one! That’s the biggest gap since last October, and it means it’s still cheaper to lock in a five-year deal.
Standard Variable Rates Still High
The average Standard Variable Rate (SVR) remains at a whopping 8.18%. This is just shy of the highest ever recorded, and it’s a stark reminder that those who are on a variable rate mortgage are really feeling the pinch.
More Choices, But Don’t Get Carried Away
The good news is there are more mortgages available than ever before – a staggering 6,629 options! That’s the highest number since 2008! But remember, just because there are more choices, it doesn’t mean they are all good deals. Do your research!
Rachel Springall, a Moneyfacts expert, said: “Borrowers may be disappointed to see another rise in mortgage rates, but at least they’re rising slowly. This makes locking in a five-year fix even more attractive, especially as SVRs are still sky-high.”
A Helping Hand for First-Time Buyers
Even better, there are more mortgages available for those with smaller deposits. There are 156 more deals at 90% Loan-to-Value (LTV) and 124 more at 95% LTV – great news for first-time buyers!
So, what does it all mean?
This is a fast-moving market, and you need to be on your toes. Don’t delay – get your mortgage sorted before it’s too late!