Mortgage products enjoy extended shelf life - Mortgages - News - Moneyfacts

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Mortgage products enjoy extended shelf life

Mortgage products enjoy extended shelf life

Category: Mortgages

Updated: 05/05/2010
First Published: 05/05/2010

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.
The average shelf life of mortgage products has almost doubled over the last month, research conducted by Moneyfacts.co.uk has revealed.

In April, the average time a mortgage product was on the market increased to 30 days, up markedly from the average of 17 days in March.

It is the longest average period of time that mortgages have been on the market since August 2007, when the sector was heavily subscribed with 9,549 products to choose from.

It is difficult to be completely sure of the reason for the average shelf life of products almost doubling, but the figures could indicate that the market is beginning to recover from a long period of volatility.

The forthcoming general election could also be an influence, as providers adopt a wait and see attitude before a new government makes its intentions for the mortgage sector clear.

"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," commented Darren Cook, spokesperson for Moneyfacts.co.uk.

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

"Many smaller lenders are unable to follow in the footsteps of some of the larger competitive players and have no alternative but to keep wide margins. They simply can't afford to cut mortgage rates any further.

"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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Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

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