Darren Cook of MoneyFacts stated, “Last year, there were over 15,000 mortgage products on offer and customers were spoilt for choice: providers kept their mortgages on their books on average for 30 days at a time. Now there are just 3,814 products available. According to Moneyfacts Mortgage Metrics, the average new mortgage is around for only 11 working days; indeed, last month when Bank Base Rate fell by 0.25%, new deals came and went within a staggering six days.
“I believe banks and building societies are being forced into these measures due to current market uncertainty. As a consequence, they are reducing the level of funds on offer, even though demand has not reduced. Lenders with products available are experiencing unprecedented levels of demand, which impinge on their back room staff’s ability to cope and on the company’s capacity to provide a good level of service. To avoid this, lenders are choosing to withdraw their products quicker than before in order to clear their demand bottlenecks.”
Related reading: Mortgages Advice
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