Rachel Springall, Finance Expert at Moneyfacts, said:
“The mortgage market has shown countless times how it can recover after periods of turmoil, and once again, product choice is slowly on the road to recovery. It has now been three months since the conflict in the Middle East began which sent a shockwave of uncertainty across the markets. These events completely flipped the expected path of interest rate setting for 2026 and spooked lenders into pulling mortgage deals from sale. Thankfully, the volatility surrounding swap rates has eased somewhat and the average shelf-life of a mortgage deal now stands at 15 days, on par with a month prior and a much more reasonable length compared to just eight days back at the start of April. The calming product churn will no doubt delight borrowers, brokers and lenders who are trying to keep abreast of latest deals to hit the market.
“Fixed rates dropped for a consecutive month, with the average two-year fixed rate seeing its biggest monthly drop in over a year of 0.10%. However, as the future path of interest rates remains unclear, it is somewhat unsurprising to see fixed rate mortgage pricing displaying mixed moves, as the average five-year fixed deal only fell by 0.05%. The two- and five-year fixed mortgage rates have been inverted for three months, with the five-year priced under the two-year. Significant volatility in interest rates caused by more global events over the shorter-term can choke the mortgage market, as UK homeowners would traditionally pick a two- or five-year fixed deal, unlike those in other countries.
“There are approximately 1.8m fixed rate mortgages due to end in 2026, according to UK Finance, and already we have seen approvals reach the highest levels seen in over three years, according to the Bank of England. It is vital that borrowers seek advice to find the most appropriate deal, particularly so they are made aware of other costs. A recent study by Legal & General revealed over a third of consumers underestimated legal and property fees, which is why a mortgage deal with incentives can help. First-time buyers remain the lifeblood of the mortgage market, so it’s essential lenders support them with packages that help them save on the upfront cost. Relaxing loan-to-income rules can also help buyers, such as those on single incomes, who are struggling to find more affordable housing.”
Rachel Springall, Finance Expert at Moneyfacts, said:
“The mortgage market has shown countless times how it can recover after periods of turmoil, and once again, product choice is slowly on the road to recovery. It has now been three months since the conflict in the Middle East began which sent a shockwave of uncertainty across the markets. These events completely flipped the expected path of interest rate setting for 2026 and spooked lenders into pulling mortgage deals from sale. Thankfully, the volatility surrounding swap rates has eased somewhat and the average shelf-life of a mortgage deal now stands at 15 days, on par with a month prior and a much more reasonable length compared to just eight days back at the start of April. The calming product churn will no doubt delight borrowers, brokers and lenders who are trying to keep abreast of latest deals to hit the market.
“Fixed rates dropped for a consecutive month, with the average two-year fixed rate seeing its biggest monthly drop in over a year of 0.10%. However, as the future path of interest rates remains unclear, it is somewhat unsurprising to see fixed rate mortgage pricing displaying mixed moves, as the average five-year fixed deal only fell by 0.05%. The two- and five-year fixed mortgage rates have been inverted for three months, with the five-year priced under the two-year. Significant volatility in interest rates caused by more global events over the shorter-term can choke the mortgage market, as UK homeowners would traditionally pick a two- or five-year fixed deal, unlike those in other countries.
“There are approximately 1.8m fixed rate mortgages due to end in 2026, according to UK Finance, and already we have seen approvals reach the highest levels seen in over three years, according to the Bank of England. It is vital that borrowers seek advice to find the most appropriate deal, particularly so they are made aware of other costs. A recent study by Legal & General revealed over a third of consumers underestimated legal and property fees, which is why a mortgage deal with incentives can help. First-time buyers remain the lifeblood of the mortgage market, so it’s essential lenders support them with packages that help them save on the upfront cost. Relaxing loan-to-income rules can also help buyers, such as those on single incomes, who are struggling to find more affordable housing.”
