If you are currently looking to buy a home or remortgage, you might have seen some alarming headlines recently. According to recent reports, the average “shelf life” of a mortgage product has plummeted to just 14 days—the shortest duration we’ve seen in over two years.
At Quick Mortgages, we understand that a fast-moving market can feel incredibly stressful. Finding the right deal is daunting enough without the clock ticking quite so fast. But don’t panic. Here is a breakdown of exactly what is happening in the market right now, why it’s happening, and the practical steps you can take to secure the right mortgage.
Why Are Mortgage Deals Disappearing So Quickly?
When financial markets experience uncertainty, mortgage lenders react. Recently, escalating tensions in the Middle East have caused a shift in financial market expectations. This unrest directly impacts swap rates—the rates that lenders essentially use to price their mortgages.
As swap rates rise, lenders are forced to quickly pull their cheaper mortgage products from the market and replace them with higher-rate alternatives. To put this in perspective, financial data experts at Moneyfacts noted that over 530 homeowner mortgage deals vanished in just a matter of days recently.
What Does This Mean for Rates?
Because lenders are pulling cheaper deals, average mortgage rates have crept back over the 5% mark.
Two-year fixed rates are currently averaging around 5.2%.
Five-year fixed rates are averaging around 5.25%.
Furthermore, earlier optimism that the Bank of England might soon cut the base rate has cooled. Experts now anticipate the Bank will hold the base rate steady at 3.75% in the near term to weather this global uncertainty.
3 Steps You Can Take Right Now
While the short-term outlook might seem a bit turbulent, history tells us that market volatility often heals. Interest rates are still significantly lower than they were during the peak of the 2022 mini-budget crisis. Here is how you can protect yourself and your wallet today:
1. Don’t Sit on Your SVR: If your current fixed-rate deal is expiring, you will automatically be moved to your lender’s Standard Variable Rate (SVR). These rates are almost always significantly higher than available fixed deals. Even with current market increases, remortgaging to a new fixed deal can save you a substantial amount of money.
2. Prepare Your Documents Early: With deals only lasting an average of two weeks, speed is your best friend. Have your bank statements, payslips, and proof of deposit ready to go so that when you spot the right deal, you can apply immediately without administrative delays.
3. Use a Mortgage Broker: This is where we come in! When deals are vanishing overnight, it is nearly impossible to track the market on your own. At Quick Mortgages, we have real-time access to the whole market. We monitor the shifting rates daily and can reserve a product for you before it gets pulled from the shelves.
Ready to secure your rate before it disappears? Reach out to the team at Quick Mortgages today, and let us navigate this fast-moving market for you.
A Quick Note on Timing and Teamwork
As you can imagine, when mortgage products are being pulled this rapidly, it places an immense amount of pressure on the entire market—including brokers. We work tirelessly to secure the very best deals for our clients, but preparing, checking, and submitting a watertight mortgage application takes time and care.
Because our window of opportunity is sometimes just a matter of days, we kindly ask our clients to help us help you. Please try not to leave your mortgage application or renewal until the eleventh hour. If a deal is about to expire, we can only move as fast as the market (and the lenders’ portals) will allow.
By reaching out to us well in advance—ideally up to six months before your current deal ends—and providing your documents promptly, you give our team the crucial runway we need to successfully prepare your case and lock in a great rate before it disappears.
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Disclaimer:
This article is for general guidance purposes only and does not constitute legal, financial, or professional advice. Mortgage products and their terms can vary, and it is important to seek advice from a qualified, regulated professional who can assess your individual circumstances. Please ensure you consider your unique needs before making any financial decisions.
While every effort is made to ensure that the information provided on this blog is accurate and up-to-date, we do not guarantee its completeness or accuracy. The mortgage market can change rapidly, and the information on this blog may become outdated. We recommend verifying any information before acting on it and seeking tailored advice.
THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME OR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT.
