Official figures announced by Money comparison website Moneyfacts show that the average time a mortgage product is available to consumers is down to 17 days, meaning that lenders are pulling products at a rapid rate and people are missing out on the more competitive rates. Because of the recent economic issues facing the UK, the lenders are constantly increasing their mortgage rates so the life of mortgage products is getting shorter and shorter.
Moneyfacts have stated that the average rate for a five-year fix has now risen for the tenth month in a row to 4.08%. The average rate for a two-year fixed product has also increased for the tenth month in a row to 3.95%. This is the highest that we have recorded since February 2013, when the rate was 4.09%.
They have also announced that the average standard variable rate has increased to 5.17%, the highest seen since December 2008, when it stood at 5.68%. This means that clients who are currently on the SVR or will soon be when their fixed products end, will soon be paying thousands more per year than they expected. This is why Oportfolio mortgages are pushing harder than ever for our clients to contact us for a mortgage health check to make sure that they avoid the SVR.
In a statement to the public, Moneyfacts representatives have said: “Following a statement from the Financial Conduct Authority last week urging eligible borrowers to consider their mortgage options and switch to a more cost-effective deal in order to save money where possible, Moneyfacts data shows that those considering a new mortgage may wish to move swiftly to achieve this. Mortgage availability has dropped again this month, admittedly reducing at a less dramatic rate than recorded last month. August began with sight of 4,407 mortgages on offer, which is 149 fewer than were available at the start of July, meaning that the level of choice for borrowers has fallen again. Not only are there now fewer deals for borrowers to choose from, but the average shelf life for mortgage deals has plummeted to a new low of just 17 days this month. This reflects the speed at which providers are updating their offerings, but also means that those looking for a new mortgage have the shortest length of time we have ever recorded to try to secure their deal of choice.”
Oportfolio mortgages based in south west London have commented: “Now is the time to act to save yourself money per month on your mortgage! Don’t delay. As we can see, products are dropping off the shelves at a record rate and being replaced by higher interest rates. In a matter of weeks you could go from a very manageable monthly payment to something extortionate. Give you advisor a call today to see if there is anything they can do to help you. At Oportfolio, for a number of months, we have been encouraging our client base to call us for regular financial health checks. In these health checks, our advisor will go over their finances, insurances and current mortgage deals to make sure that everyone has the most beneficial deal. If you are currently on the SVR or your fixed term product is ending soon, you need to do everything you can to avoid the standard variable rate. At 5.17% you will end up paying a huge amount more per month on your mortgage than you should be.”
If you or anyone you know is concerned about mortgage rates or the deal that you are currently on, please feel free to give us a call today to see how we can help.