Market uncertainty drives faster product turnover than after the 2022 mini-Budget
Mortgage products are staying on the market for a shorter period after a rise in lending activity in February, according to the latest Moneyfacts UK Mortgage Trends Treasury Report.
The data, captured at the start of the month, shows the average “shelf-life” of a mortgage fell to 14 days on March 1. Moneyfacts said this was a sharp shift from the slower pace seen in January and the shortest average since August 2023, when shelf-life was 13 days. The record low, based on figures tracked since 2011, was 12 days in July 2023.
Moneyfacts also compared current conditions with earlier periods of disruption. At the start of October 2022 — following the market reaction to the “mini-Budget” — the average shelf-life was 15 days.
Product availability eased month on month, though lenders still offered more than 7,000 deals. Moneyfacts noted that, since the beginning of March, average mortgage rates have increased and product numbers have fallen further, reflecting changing market expectations.
For borrowers coming to the end of fixed-rate deals, the report said the financial case to remortgage has strengthened, as fixed rates remain well below the typical “revert to” rate or standard variable rate (SVR). The average SVR slipped to 7.13%, down from 7.68% a year earlier. Moneyfacts said the highest level recorded was 8.19% in November and December 2023.
“The general optimism heading into 2026 for the market might have suffered a bit of a setback, as it is looking incredibly unlikely that the Monetary Policy Committee will favour a cut to the Bank of England Base Rate,” said Rachel Springall (pictured right), finance expert at Moneyfacts.
“The reason rests on the uncertainty surrounding tensions in the Middle East; this puts pressure on inflation, gilts and as a casualty, swap rates – the latter drives the cost of fixed rate mortgages. A hold to the BBR should not delay borrowers from refinancing, as they can still save a significant sum by moving off a Standard Variable Rate (SVR).
“Seeking advice will be an essential step for borrowers to secure a competitive deal, whether a first-time buyer or those who need to refinance. The outlook might look a bit bleak for borrowers right now, but as we have experienced before, a short-term spike in market volatility can heal and interest rates are still far lower than they were a couple of years ago. The overall choice in deals is also significantly higher, particularly those aimed at borrowers with small deposits.”
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