Mortgage shelf lives shrink as deals disappear – what borrowers need to know

The average shelf life of a mortgage deal has plummeted from 33 days at the start of February to just 14 days in March - the lowest it has been in over 2 years. According to Moneyfacts UK, as many as 600 mortgage products disappeared in one week as the market continues to react to the conflict in the Middle East.

Borrowers seeking to secure a mortgage to buy a property, as well as those whose mortgage deals will expire this year, may have been expecting rates to fall, but are instead seeing rates rise daily and will need to act quickly to secure a rate.

Why mortgage deals are disappearing

The average shelf life of a mortgage refers to the period of time that deals are available before a lender either removes or reprices it. When it changes drastically, it is usually a sign that lenders are reacting to a change in the market. The last time the shelf life of mortgage products was shorter than 14 days was July 2023, when deals lasted only 12 days on average.

The ongoing conflict in the Middle East has triggered a global energy shock, causing a sharp rise in oil and gas prices. This increase makes it more expensive to manufacture and transport everyday goods, which is likely to push UK inflation higher over the coming months. To help keep these rising living costs under control and stabilise the economy, the Bank of England may be forced to increase the base rate. Latest market predictions hint at the possibility of two quarter-point rate hikes this year - a complete turnaround from the expectation that we would see at least two cuts. You can read more in our article, “Will interest rates fall in 2026?”

The Bank of England's (BoE) Monetary Policy Committee voted to hold the base rate at 3.75% this week. The BoE's base rate influences swap rates, which banks use to lend to one another. Swap rates started to increase steeply at the end of February, with 2-year fixed rates rising from below 3.40% to more than 4.20%. Lenders will be keen to protect themselves against further rises in swap rates, which could affect their margins, making further rate adjustments almost inevitable.

What is happening to mortgage rates?

Mortgage rates have steadily increased since the conflict in the Middle East began. The average 2 and 5-year fixed rate mortgage deals increased from 4.85% and 4.94% in February to 5.28% and 5.32% this week. The best mortgage rate for a fixed 2-year fixed deal on a 60% loan-to-value purchase has gone from 3.55% to 3.98% in three weeks. Lenders that have repriced mortgage deals amid rising swap rates include Santander, Barclays, Halifax, Nationwide, First Direct, and HSBC. You can search for the most competitive mortgage rates across over 90 lenders using our mortgage rate comparison tool or stay abreast of them in our regularly updated article, "Best mortgage rates in the UK".

How to find and secure the best mortgage rates

Current mortgage rate predictions - at least in the short term - are that rates will rise, so borrowers would be wise to secure the rates currently available to them. Generally, you can secure a rate in advance, as long as you complete the required application and your lender issues an acceptance offer. This is true whether you are looking to purchase a property or simply remortgage an existing mortgage deal that is due to expire.

Property buyers can usually secure rates for between three and six months, with most lenders requiring a new application after the valid period expires. The period usually allows for delays between your seller accepting your offer and completing the purchase. You should always check whether your lender will hold the initial rate for the mortgage you have been offered and act accordingly. If you have not yet secured a mortgage offer, it may be useful to do so sooner rather than later. Searching the market for the best mortgage deal for your circumstances can be difficult, especially if you wish to avoid wasting time applying to lenders who are unlikely to approve your application. Using a mortgage broker can make the task quick and easy, as brokers are well-versed in lenders' acceptance rules.

Mortgage holders whose current deals are due to expire this year should start shopping around for a new mortgage rate, too. Remortgage deals can usually be secured up to six months in advance, depending on your lender. Transfer windows can vary by lender, so make sure you check the terms of your mortgage deal or check out our article where we list the “Mortgage product transfer windows by lender”. If you plan to search the market for the best remortgage deal, you may find it helpful to speak with a mortgage broker who can help you to secure a mortgage deal. You can also check the new deal offered by your lender against the best in the market, which we regularly update in our article, "Best remortgage deals in the UK".

If you do not have a mortgage broker, you can find one by searching the online professional directory, Vouchedfor*, where you will find professional mortgage brokers in your area. The directory breaks mortgage brokers down by specialism and you can view other customers' reviews of the service that they have provided. Alternatively, you can access mortgage advice online and over the phone through the online mortgage broker Habito*. Habito's mortgage brokers can search over 90 lenders' mortgage deals and will provide advice and guidance to help you secure your mortgage offer.

 

 

If a link has an * beside it this means that it is an affiliated link. If you go via the link, Money to the Masses may receive a small fee which helps keep Money to the Masses free to use. The following link can be used if you do not wish to help Money to the Masses or take advantage of any exclusive offers - Habito, Vouchedfor