Shelf life of mortgage products 'falling'

Date:Monday 20th July 2009
Author: Susanna Kavka

Due to the volatility of the mortgage market at present, the average shelf life of home loan products in the UK is declining.

This is according to a Moneyfacts Treasury Report, which found that mortgages were typically available for 14 days in June, down from the 23 days registered when conditions were more stable.

Moneyfacts suggested that rate changes have been the biggest culprit for the shortened lifespan of home loans.

Darren Cook, an analyst who contributed to the report, said it is "bad news" for consumers that mortgage shelf lives are falling.

He added: "There are now only a limited number of cheaper deals available and before the consumer has chance to look at them a second time, they are gone."

The expert went on to predict that he would not be surprised if shelf life was to fall further during the next few months.

Recently, broker firm John Charcol advised consumers that tracker mortgages may be better value currently than fixed-rate products.