The shelf life of mortgages has plummeted as lenders have withdrawn products to reprice them upwards.
According to Moneyfacts’ UK Mortgage Trends Treasury Report, the average shelf life of a mortgage product plummeted to 15 days over the last month, with lenders increasing fixed rates.
This marked a six-month low, and was down from 28 days at the start of February 2024.
Rachel Springall, finance expert at Moneyfacts, said: “Mortgage product availability was volatile during February, as the average shelf life of a deal plummeted to just 15 days, a six-month low.
“Lenders reacted to the change in swap rates, leading to numerous repricing of fixed rate deals, no doubt making it a challenging situation for borrowers and brokers to keep on top of the changes.”
Rates rising
Average mortgage rates on two- and five-year fixed rate deals rose, breaking six months of consecutive cuts.
Two- and five-year fixed rates rose between the start of February and the start of March, to 5.76% and 5.34% respectively.
The average ‘revert to’ rate or standard variable rate (SVR) rose slightly by 0.01 percentage points, to 8.18%.
The average two-year tracker variable mortgage remained at 6.15%.
Springall added: “It is worth noting that fixed rates remain lower than at the start of 2024, and there are still some decent options available for borrowers to compare.
“Mortgage choice recorded the biggest month-on-month rise in six months, with mortgage options for borrowers overall breaching 6,000, the largest count in 16 years.
“As fixed mortgage rates rise, borrowers may wish to wait and see whether these rates will come back down in the weeks to come, but they must keep in mind that there is still an incentive to switch away from an SVR.
“All eyes are on the Monetary Policy Committee and their future rate-setting, in conjunction with the swap rate market, as to whether mortgage rates will come down this year. Borrowers would be wise to seek advice if they are looking for a new deal, particularly as the shelf life of a product remains so unpredictable.”
Related: Switch to a fixed rate mortgage and save over £500 a month
