Big Clams

As the Credit Crunch hits hard in the UK it’s been revealed that the average shelf life of a new mortgage deal is now less than two weeks, similar to the shelf life of a carton of milk.
 
The Figures coming from Money facts show that the longevity of mortgage products has dropped from 30 days in 2007 to just 11 days now. In 2007 there were more than 15,000 mortgage products on offer in the UK, compared to just 3,814 products now.
 
The 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.
 
Also what’s happening is that UK house prices have recorded their largest monthly fall since 1991, which was reported by the Nationwide building society being a fall of 2.5% during May, according to Nationwide’s latest monthly survey. This is furthermore putting pressure on mortgage lenders to constantly review and tailor their rates, products and criteria to where the housing market is going.
 
Good advice from Enable Finance the mortgage broker says: to stay one step ahead borrowers have to work closely with their mortgage broker to ensure they can reserve the best mortgage rate available at any given time. Moreover be prepared, have all the  documents ready you are going to need and move quickly when you see the best overall mortgage rate for your circumstances. Remember the best overall mortgage rate for you may not just be the cheapest monthly repayment for the introductory period.
 
This frenzy is causing problems as borrowers are being left behind in the cold and the Council of Mortgage Lenders are worried about rising mortgage arrears. Borrowers who are worried that they will soon be unable to meet their monthly mortgage payments should not bury their heads in the sand. The CML urges homeowners facing financial difficulties to make every effort to speak to their lender as soon as possible.
 
According to research by insurance company AXA, the number of mortgages more than six months in arrears at the end of last year was 56,800 (0.48 per cent). If you are experiencing problems with your mortgage repayments or currently have mortgage arrears, please contact your mortgage lender and explain your situation they will want to help you, they might consider re-scheduling the loan, and there are possibilities for extending the term of the loan which could reduce payments. Or contact our mortgage advice site now to see if we can help

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This entry was posted on Tuesday, June 3rd, 2008 at 4:16 pm and is filed under Commercial money. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.