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UK Slowly Improving Mortgage Products Market

Housing-Market / Mortgages May 05, 2010 - 06:52 AM GMT

The average shelf life of a current mortgage deal now stands at 30 working days, the longest since August 2007, when the market was heavily subscribed with 9,549 products.

Could this be an indication that we are nearing the end of a volatile mortgage market and is there is still scope for more competition or are lenders waiting patiently to see what intentions a new Government may have?

Darren Cook, spokesperson at Moneyfacts.co.uk, commented: “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.

“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 and simply can’t afford to cut mortgage rates any further.

“The average shelf-life of a new mortgage product has nearly doubled in just one month from 17 days in March to 30 days during April and 26% less product rate changes took place over the same period.

“Lenders may be waiting to see what influences a new Government will have on this recovering mortgage market.

“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”.

www.moneyfacts.co.uk - The Money Search Engine

Moneyfacts.co.uk is the UK's leading independent provider of personal finance information. For the last 20 years, Moneyfacts' information has been the key driver behind many personal finance decisions, from the Treasury to the high street.

Comments

Mark
09 May 10, 14:50

Housing outlook

'A platform is developing and is getting ready for a resurgence of the market' Mmmm...House prices remain over inflated, mortgage products that help buyers (low set up costs, realistic offset from base rate) are pretty much non-existent. I am hoping whatever form the new government takes that the housing market in the UK resets to reality.

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