Mortgage deals 'selling out'

Many mortgage lenders are seeing their most attractive packages sell out within days due to a desire among homeowners to remortgage to the best deals and lenders' efforts to reduce risk, according to the Financial Times.

Offers such as the Woolwich's 5.59 two-year fix have been removed from the market despite having only been introduced this month, the newspaper has reported.

A new tactic among lenders is emerging which sees them offer competitive deals on a short-term basis only in order to encourage competition, it has been suggested.

"Lenders are putting together smaller packages of funding designed to operate over a shorter period of time to remove some of the risk," Bernard Clark from the Council of Mortgage Lenders told the FT.

Earlier this week Peter Spencer, chief economic advisor to Ernst & Young's Item Club, said that there was unlikely to be a recession within the housing market because of stronger fundamentals such as falling mortgage rates.

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