Mortgage prices may have fallen but borrowers have less time to snap up deals when they come to the market.
That’s according to new data which shows the average shelf-life of a mortgage has dropped from 36 days in February to 16 days in March.
This comes as lenders have reduced prices and average mortgage rates on two and five-year fixed rates have descended.
The data from Moneyfacts shows that during the same time the shelf-life of a typical mortgage has plummeted, the prices of a fixed rates have fallen by their biggest margin in almost six months.
It said average mortgage rates on the overall two- and five-year fixed rates fell by 0.13% and 0.10% to 5.39% and 5.22% respectively.
In more good news product choice has also increased, with 6,684 options now available. Product numbers are up year-on-year, according to Moneyfacts, and are at their highest since February 2008.
Rachel Springall, finance expert at Moneyfacts, said: “The rate cutting momentum was prevalent during February, with the average two- and five-year fixed rates seeing their biggest cuts in almost six months.
“Such fierce competition in the aftermath of a typically subdued time of year, showed a mix of moves, but it led to the average shelf-life of a mortgage plummeting to 16 days at the start of March, down from 36 days at the start of February.
“The churn of ranges and rate moves circulated around swap rate volatility, but also due to a drop to the Bank of England base rate near the start of the month. Lenders typically act within a couple of weeks of any fierce rises or falls to swap rates.
“However, it is uncertain whether the rate cutting sentiment will be sustained in the weeks to come, particularly by significant margins, but the millions of borrowers due to come off a cheap fixed deal will be hoping for further falls, without doubt.”
Moneyfact’s data comes just a week after it revealed fees on mortgage products were increasing. As such experts, including Springall, are urging borrowers looking at new deals to make sure they factor this in when choosing mortgages.
“Borrowers must make sure to look beyond the headline grabbing low fixed rates on the market and pick a deal that provides the best cost-saving package,” she said.
