New mortgage deals put in fleeting appearances
by Gill Montia
Financial website Moneyfacts.co.uk has discovered that new mortgage products are little more than a flash in the pan because they are available for an average of 11 working days.
In April, when the base rate was reduced by 0.25%, some mortgages actually put in a fleeting appearance that lasted only six days.
This time last year, the average life of a new mortgage product was 30 days and given that potential borrowers are making a major decision that requires careful consideration, even this period is surprisingly short.
The shift in mortgage longevity comes during a period when the number of loans available has fallen from around 15,000 to just 3,814 over a year, according to Moneyfacts Mortgage Metrics.
The credit crisis has left banks and building societies struggling to fund their lending and many new home loans have received an overwhelming response from potential borrowers, to the extent that administration staff have been unable to cope.
As a result, products are being withdrawn with only hours of notice given, as lenders balance their funding restrictions and back office capacity.
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