The average shelf life of a mortgage has plummeted to 15 days, the lowest level on Moneyfacts’ records.

The financial information provider also found that overall two- and five-year fixed mortgage rates fell for the second month in a row and product choice was much more stable than seen in recent months.

The overall number of mortgages has improved since October 2022, up from 2,258 options to 3,643.

Lower rates

Both the average two- and five-year fixed rates fell month-on-month to 5.79% and 5.63% respectively, following 13 consecutive months of rises recorded up to November 2022.

At 5.79%, the average two-year fixed rate dropped by 0.22 percentage points – falling below 6.00% for the first time since October 2022.

However, the average Standard Variable Rate (SVR) continued to climb. At 6.64%, this rate is now the highest on Moneyfacts’ records since November 2008 (6.77%).

The gap between the average two-year fixed rate mortgage from two years ago (2.52%) and the current average SVR continues to expand (a difference of 4.12%), highlighting how important it is that borrowers look carefully at their remortgage options.

Rachel Springall, finance expert at Moneyfacts, said: “As existing mortgage holders weigh up their refinancing plans and others debate their home purchase desires in 2023, it is imperative they seek independent financial advice to go through the options available to them.

“The cost of living crisis and inflated interest rates over recent months may well impact borrowers’ intentions of getting a new deal. However, it is anticipated that fixed interest rates will fall further in the months to come to entice new business.”