Rachel Springall, Finance Expert at Moneyfacts, said:
“The lifespan of a mortgage deal has plummeted to a record low of just eight days on average and mortgage product availability has shrunk by around 17% in just one month. Fixed mortgage rates noted sizeable marginal increases month-on-month, such as with the average two-year fixed rate rising by 1% for the first time in nearly four years, way back in November 2022. The unrest in the Middle East caused mortgage mayhem, with lenders rushing to pull products from sale and reprice at higher rates throughout March. Unfortunately, this has led to a drop of almost 400 options for borrowers with just a 5% or 10% deposit or equity, awful news for first-time buyers. The market overall has experienced the worst upheaval to mortgage choice since the mini-Budget, yet another blow for borrowers over the past five years, which includes the surge in interest rates during the summer of 2023 amid higher inflation expectations.
“Concerns surrounding the possibility of inflation getting out of control this year has completely flipped the projected path of interest rates. The start of 2026 appeared promising, especially for borrowers about to remortgage, but it’s all changed. The tide could turn once the markets feel more confident about future rate pricing, but borrowers who are due to come off a deal soon will be incredibly frustrated by mortgage rate hikes. If someone took out a typical mortgage now, compared to the start of March, it would cost them around £1,800 a year more in repayments on a two-year fixed deal*. Worse still, borrowing the same size loan on a typical mortgage now, compared to 2021 on a five-year fixed deal, would cost around £5,000 more in mortgage repayments over one year.
“It will be essential for borrowers to keep calm and seek advice from a broker to navigate the mortgage maze. Brokers are an anchor during times of turbulence as they can help borrowers understand how they can best afford a mortgage or plan the available options months in advance. Borrowers could try to overpay their mortgage, as paying just £100 more per month can shave almost three years off their loan and save over £25,000 in interest on a typical mortgage charging 5%.”
*Typical mortgage based on a loan of £250,000 over 25 years, two-year fixed rate in March 2026 of 4.84% versus April 2026 of 5.84%, other calculations based on a five-year fixed average of 2.77% in April 2021 versus 5.75% in April 2026.
Rachel Springall, Finance Expert at Moneyfacts, said:
“The lifespan of a mortgage deal has plummeted to a record low of just eight days on average and mortgage product availability has shrunk by around 17% in just one month. Fixed mortgage rates noted sizeable marginal increases month-on-month, such as with the average two-year fixed rate rising by 1% for the first time in nearly four years, way back in November 2022. The unrest in the Middle East caused mortgage mayhem, with lenders rushing to pull products from sale and reprice at higher rates throughout March. Unfortunately, this has led to a drop of almost 400 options for borrowers with just a 5% or 10% deposit or equity, awful news for first-time buyers. The market overall has experienced the worst upheaval to mortgage choice since the mini-Budget, yet another blow for borrowers over the past five years, which includes the surge in interest rates during the summer of 2023 amid higher inflation expectations.
“Concerns surrounding the possibility of inflation getting out of control this year has completely flipped the projected path of interest rates. The start of 2026 appeared promising, especially for borrowers about to remortgage, but it’s all changed. The tide could turn once the markets feel more confident about future rate pricing, but borrowers who are due to come off a deal soon will be incredibly frustrated by mortgage rate hikes. If someone took out a typical mortgage now, compared to the start of March, it would cost them around £1,800 a year more in repayments on a two-year fixed deal*. Worse still, borrowing the same size loan on a typical mortgage now, compared to 2021 on a five-year fixed deal, would cost around £5,000 more in mortgage repayments over one year.
“It will be essential for borrowers to keep calm and seek advice from a broker to navigate the mortgage maze. Brokers are an anchor during times of turbulence as they can help borrowers understand how they can best afford a mortgage or plan the available options months in advance. Borrowers could try to overpay their mortgage, as paying just £100 more per month can shave almost three years off their loan and save over £25,000 in interest on a typical mortgage charging 5%.”
*Typical mortgage based on a loan of £250,000 over 25 years, two-year fixed rate in March 2026 of 4.84% versus April 2026 of 5.84%, other calculations based on a five-year fixed average of 2.77% in April 2021 versus 5.75% in April 2026.
