Mortgage deals hit fastest pace on record as product choice narrows

Mortgage deals are disappearing from the market at the fastest pace on record due to a decline in product choice and rising fixed rates, according to the latest data. moneyfacts.

The average shelf-life of mortgages dropped from 14 days in February to just eight days in March, the lowest period recorded since tracking began in 2011. The previous low was 12 days in July 2023. The latest figure is also below the levels seen during the market disruption following the 2022 mini-budget.

At the same time, the number of mortgage products available fell by 1,283 month-on-month to 6,201, falling below 7,000 for the first time since November 2025 and hitting a two-year low. Lenders reduced their offers during March amid uncertainty over the direction of interest rates.

Fixed mortgage rates also rose sharply. The average two-year fixed rate rose by one percentage point during the month, the largest increase since November 2022, while the average five-year fixed rate increased by 0.79 percentage points, the largest increase since July 2023.

Despite the increase, fixed rates remain below the average standard variable rate (SVR), which stood at 7.13% in March. That’s down from 7.60% a year ago, and below the recent peak of 8.19% recorded at the end of 2023.

Rachel Springall, finance commentator at MoneyFacts, said: “The lifetime of a mortgage deal has fallen to a record low of just eight days on average and mortgage product availability has fallen by almost 17% in just one month. Fixed mortgage rates have recorded large modest month-on-month increases, with the average two-year fixed rate increasing by 1% for the first time in almost four years, as early as November 2022.

“As unrest in the Middle East caused a mortgage crisis, lenders rushed to pull products from sale and reprice at higher rates throughout March. Unfortunately, this has led to a drop in around 400 options for borrowers with only a 5% or 10% deposit or equity, bad news for first-time buyers. Overall the market has experienced the worst turmoil for mortgage options since the mini-budget, the last five Another blow to borrowers in years to come, including a rise in interest rates in the summer of 2023 amid expectations of higher inflation.

“Concerns over the possibility of inflation getting out of control this year have completely overturned the projected path of interest rates. The start of 2026 looked promising, especially for borrowers who were looking to get a mortgage again, but that has all changed. The situation may change once the market feels more confident about future rate pricing, but borrowers who are due to strike a deal soon are left incredibly disappointed by mortgage rate rises. Will be.

“If someone took out a normal mortgage now, compared to the beginning of March, they would have to spend around £1,800 a year more in repayments on a two-year fixed deal. Worse, borrowing the same size loan on a normal mortgage now, compared to 2021 on a five-year fixed deal, would cost around £5,000 more a year in mortgage repayments.

“It will be essential for borrowers to stay calm and seek advice from a broker to navigate the mortgage maze. Brokers are a go-to support in times of turmoil as they can help borrowers understand how they can best pay off a mortgage or plan the options available months in advance. Borrowers may also try to pay down their mortgage more, as paying just £100 more per month can shave almost three years off their loan and This could result in a saving of over £25,000 in interest on a typical mortgage charging 5%.”