The average home loan deal is only on the market for 17 days and there are fewer offers to choose from

It’s time to lock in your mortgage fast: average home loan deals are currently only on the market for 17 days – the shortest time in a DECADE – and there are fewer deals to choose from

  • Rising interest rates push homeowners to apply for fixed rate mortgages
  • There were 149 fewer mortgage transactions available in August than in July
  • Mortgages remain in the market 4 days less than the previous low point at 21 days
  • The hike could add around £1,400 to mortgage payments over two years

The time a mortgage remains on the market has reached its shortest period in at least a decade, at just 17 days.

According to Moneyfacts.co.uk, homeowners are flocking to the best fixed rate mortgage deals to hedge against rising interest rates.

The number of available mortgages also fell, with 149 fewer transactions on the market than in July.

It comes as the Bank of England made the biggest rate jump since 1995, raising the base interest rate from 1.25% to 1.75%.

The Bank of England has raised interest rates from 1.25% to 1.75%

The hike could add around £1,400 to a homeowner’s mortgage payments over the next two years, based on a £200,000 mortgage paid off over 25 years.

Eleanor Williams, finance expert at Moneyfacts.co.uk, said: ‘Not only are there now fewer offers for borrowers to choose from, but the average shelf life of mortgage offers has dropped to a new low of only 17 days this month.

“Potential borrowers will also note that the rates on offer continue to climb.

“The average five-year fixed-rate mortgage exceeded 4% for the first time in nearly eight years, hitting 4.08% this month, a high not seen since October 2014, when it was 4 .08%.”

The findings were published by financial technology firm Twenty7Tec, which also said it observed that mortgage availability continued to decline in July.

James Tucker, Founder and CEO of Twenty7Tec, said: “So far this year, we’ve seen 10.5 million mortgage searches on the platform.

“That’s a month earlier than we hit the 10 million search mark in 2021.

“We expect 2022 to exceed 2020 total mortgage search volumes by mid-September.

“Bearing in mind how busy 2020 has been, that’s quite an achievement.”

He added: “Product availability is probably one of the key metrics this month. We are now operating at around three-quarters of pre-pandemic highs – down for the fourth month at a trot.

“We also saw a much greater concentration towards fixed mortgages.”

The new Prime Minister will have to find BILLION more to support households as inflation hits its highest level since the 1970s

Paul Johnson, director of the Institute for Fiscal Studies think tank, said the new prime minister will have to find billions to support households and public services.

Speaking to BBC Radio 4’s Today program about the 13 per cent inflation forecast, he said: ‘It will to some degree in the short term have a positive impact if prices and, to some extent, wages are rising much faster than expected. There will be more tax revenue.

“But what I find remarkable about the Conservative leadership debate is that they don’t seem to be talking about the things that will really need public finances.”

“The first is, of course, that they’re going to have to come up with a lot more billions to support households. I mean it’s a much bigger increase in energy bills than we expected just a few months ago when the support plans were announced and it won’t be helped by the kinds of tax cuts we’re talking about.

“Secondly, of course, more money is going to be needed for public services – health care education etc. – because with 13% inflation and wage increases of around 5-6% , this means that the level of increases that were put in place this year and announced a year ago seem far too low, as this was done in the expectation of 3-4% inflation.

“So we’re looking at potentially big cuts in real terms in some of the public services, which are really struggling right now.”

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