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Thursday 14th of January 2010
July 17, 2009    

Average fixed-rate deal available for only 14 days

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by Gill Montia

Mortgage experts have been urging homeowners to opt for fixed-rate mortgages for weeks, to hedge against an inevitable rise in the base rate.

However, new research from Moneyfacts shows that lenders are launching and withdrawing fixed-rate deals with almost indecent speed.

Last month the average time scale for borrowers to secure a fixed-rate mortgage fell to just 14 days.

The financial website points out that the rates at which banks borrow to fund their mortgage businesses remain unpredictable and lenders are therefore tending to pull deals that prove popular, rather than risk a run of business that could be cause for regret.

The firm’s analyst, Darren Cook, says: “It is bad news for consumers … 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.”

In June, figures from the Council of Mortgage Lenders showed that Britons were opting for fixed-rate deals in their highest numbers for ten months.

During the month the rate on the average two-year fix rose to 4.47%, from 3.98% in May, according to the Bank of England.

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