Stephen Perkins (Image: Stephen Perkins/Newspage)
The average shelf-life of a mortgage plummeted to a record low of just eight days in March, down from 14 days in February, according to Moneyfacts – and a mortgage expert has urged borrowers to be ready to act at short notice or risk missing out. The previous lowest average lifespan of a mortgage was in July 2023, at just 12 days, the research from Moneyfacts showed.
Reflecting the enormous uncertainty triggered by the conflict in the Middle East, the average mortgage shelf-life is now even shorter than it was at the start of October 2022, when it stood at 15 days following the notorious Liz Truss ‘mini-Budget’ that had an unprecedented impact on mortgage choice and sent rates spiralling upwards.
One broker, Stephen Perkins, managing director at national mortgage broker Yellow Brick Mortgages, said it had never been more crucial for anyone considering buying or remortgaging at present to have everything in order.
He said: “The speed at which events in the Middle East are unfolding and the possibility of peace and a ceasefire one minute and a prolonged conflict and energy crisis the next, means lenders are pulling or repricing their products far more than normal. A product could become available on a Monday and, a week or so later, be gone altogether.
“That, for now at least, is the new normal. It’s therefore vital that borrowers are document-ready to ensure they can secure a rate before it may be pulled altogether.” Stephen outlined the key documents borrowers should have readily available to share with their broker, including the last three months’ payslips and most recent P60 for those in employment, or the latest two years’ accounts and tax year overviews for the self-employed.
It’s very volatile at the moment (Image: Oscar Wong via Getty Images)
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He further noted that first-time buyers must provide bank statements or other evidence of savings set aside for their deposit, or a letter confirming any gifted deposit. Three to six months of bank statements demonstrating outgoings and spending patterns were also essential for borrowers, alongside proof of address and identity.
Stephen said: “I’ve never known a time when rates and products appear and then disappear so quickly. It’s a huge challenge for borrowers and we encourage all prospective buyers and those remortgaging to speak to their brokers ASAP to ensure that they have everything ready to secure a product while it’s still there.”
Deals are short-lived (Image: d3sign via Getty Images)
It is worth bearing in mind that rates can only be secured upon application with most lenders, and at the agreement in principle stage with a select few. In either instance, the rate will only be locked in once all required documentation is in order.
Stephen warned that failing to have the necessary paperwork ready could prove costly should rates continue to climb — a possibility that nobody is dismissing.
He said: “To fail to prepare is to prepare to fail, and that has never been more pertinent than at present. One missing document can delay your application and mean you miss out on a rate that could save you hundreds or even thousands of pounds on your mortgage in the years ahead.
“It’s always been important to be organised when it comes to your mortgage, but that is the case more than ever in these highly volatile times.”
