The average shelf life of mortgage products is the lowest ever

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The data shows that potential borrowers currently have only 21 days to select their desired mortgage, by comparison: in July 2021, on average, 30 days, and in August 2019, 48 days.

Apart from aggressive market re-pricing, the number of products to choose from continues to grow from 2,526 in August 2020 across all LTVs.

Last month this figure was 4 512 people, and today it is 4 660 people.

Nowhere is this jump more noticeable than in the 95% LTV group – in August 2020, the number 20 jumped to 275, while at its lowest level – at 60% LTV – the number jumped from 500 to 577 over the same time period.

Moneyfacts adds that for the second straight month, both 2- and 5-year-old average rats fell 3 basis points apiece across all LTVs.

Thus, the average two-year fixed rate is 2.52% and the average five-year fixed rate is 2.75%. For a two-year course, this is the lowest rate since January 2021, and for a five-year rate, this is the lowest rate since March this year.

Moneyfacts financial expert Eleanor Williams says: “Our data shows that the number of choices available to consumers has increased again this month. [to]… The highest figure in seventeen months.

“This demonstrates the level of recovery in the residential sector, where for only the second straight month since June 2018, availability has improved across all individual LTV categories as lenders seek to accommodate borrowers with varying levels of deposit or equity.

“Availability in sectors with lower and medium LTV has recovered, where borrowers who need 80% or 85% LTV have 152 and 22 more products to choose from than in August 2019.

“Choice continues to improve at higher LTV levels: in the last month alone, LTV grew by 90% and 95% for another 25 and 22 transactions.

“This suggests that, probably supported by the introduction of a mortgage guarantee scheme, providers are ready to serve this traditionally more vulnerable demographic, although their willingness to do so remains somewhat behind what it was compared to August before the 2019 pandemic. because now there are 199 and 116 transactions less to choose from than there were two years ago. “

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