Mortgage deals disappearing at a record rate

New research shows that mortgage deals disappeared at a record rate in June as homeowners moved quickly to secure new deals before they became more expensive. The financial data analyst Moneyfacts found that the average shelf life of a mortgage deal was 12 days between June and July, beating the previous low of 15 days set last October when the mortgage market was tipped into chaos after the Government's disastrous mini-budget. Moneyfacts also said that savings bonds also swiftly disappeared with products being pulled after an average of 27 days, down from 34 days in June. In comparison, during the financial crisis in 2009, the average was 16 days. Aaron Strutt from the mortgage broker Trinity Financial said: "Bank of England rate hikes have put huge pressure on the mortgage sector, increasing funding costs and reducing mortgage availability. Lenders say that the ongoing spikes in mortgage applications mean they have been struggling to price their mortgages. If rates are available for too long, then the lenders use the allocated funds more quickly than normal".

The Sunday Times (23/07/2023)