As interest rates continue to rise, homeowners looking to grab a new mortgage deal may need to act fast if they see a good deal. This is due to the shrinkage of the home loan “shelf life” which currently stands at 17 days, the shortest time in a decade.
Now the average time a mortgage is available on the market is four days less than the previous 21 days according to Moneyfacts.co.uk
In August, the mortgage availability decreases with 149 fewer deals on the market than in the previous month of July.
Although 4,400 mortgages were still available, finance expert at Moneyfacts, Eleanor Williams said: "Would-be borrowers will also note that the rates on offer are continuing to climb.
"The average, overall, five-year, fixed-rate mortgage has breached 4% for the first time in nearly eight years, reaching 4.08% this month, a high not seen since October 2014 (when it was 4.08%)."
The findings were released as a separate report from the financial technology from Twenty7Tec who said that they had also observed the mortgage availability continuing to fall in July.
Recently the Bank of England increased the base rate by 0.50 percent, taking it from 1,25% to 1.75%, creating the biggest single rate jump since 1995.
Locking into a fixed-rate, mortgage deal would help to shelter mortgage borrowers from further base rate rises, however, individual circumstances may vary, therefore individuals need to weigh up if it is right for them.
A 0.50 percentage point rise on the current average standard variable rate (SVR) could add about £1,400 to a homeowner's mortgage payments over the next two years, according to Moneyfacts.co.uk.
The calculation is based on a £200,000 mortgage being paid back over 25 years.