The mortgage market remains in a state of quandary with changing opinions and advice being given by the money and savings experts. This recession is proving to be deeper and more unforgiving than the previous. Mortgage Brain who provides a mortgage sourcing system which is used by professional mortgage brokers has said that the number of fixed rate mortgages available in June had slumped 82% when compared with the previous year.
Their analysis showed that the number of fixed rate mortgages had fallen from 1,905 products in May 2009 to 1,477 in June 2009 a fall of 23% within the month. They also witnessed a fall of 9% in the number of tracker rate deals on offer and they saw a 9% increase in the number of standard variable mortgages available.
This suggests that the mortgage providers and finance lenders are still uncertain of where the mortgage market is going at present. We have already seen evidence of the swap rates increasing. Swap rates are the interbank lending rate which they lend money between themselves. As I said in previous posts we are likely to see interest rates start to increase soon due the increase in these swap rates.
My guess is that the market is withdrawing fixed rate mortgage deals in order to introduce more expensive deals soon. Your thoughts, experiences and comments are welcome. You can join the discussion below and leave your thoughts and experiences.