Fixed mortgage rates cut as shelf life drops to 15 days: Moneyfacts

Mortgage lenders are constantly changing their fixed and tracker rates giving borrowers less time to select a deal.

Data from the latest Moneyfacts UK Mortgage Trends Treasury Report shows a fall in the average shelf life of a mortgage to 15 days, the joint lowest on Moneyfacts records. 

Mortgage product availability has improved since October 2022, up from 2,258 mortgage rates to 3,643. While month-on-month, product numbers were much more stable, falling by just 87 deals, the smallest shift recorded by Moneyfacts since April 2022. 

Moneyfacts figures show that the average two- and five-year fixed rates fell month-on-month for the second month running, down 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% - falling below 6.00% for the first time since October 2022.

Aaron Strutt, product director at Trinity Financial, says: "Even though the lenders change their rates every couple weeks, many of them are getting cheaper. If you apply for a mortgage, it is important to keep an eye on the lender's rates and try to switch to their cheaper deals if they come down. Not all lenders will let you amend the rate once an offer has been reduced, but many are happy to do it, providing you pay a small admin fee."

Following on from another Bank of England base rate rise in December 2022, the average ‘revert to’ rate or 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%).

Call Trinity Financial on 020 7016 0790 to secure a mortgage or book a consultation