Brand Logo Moneyfacts Group plc
Telephone Icon T: 01603 476476 Email Icon E: enquiries@moneyfacts.co.uk LinkedIn Icon

Mortgage shelf-life drops and lenders increase rates

Image of a Moneyfacts Mortgage Treasury Report Image of a Moneyfacts Mortgage Treasury Report Image of a Moneyfacts Mortgage Treasury Report
Rachel Springall, Press Officer
Rachel Springall, Press Officer / Finance Expert T: 01603 476210 E: Email Rachel
10/06/2024

Mortgage shelf-life drops and lenders increase rates

Moneyfacts UK Mortgage Trends Treasury Report data reveals the average shelf-life of a mortgage has dropped to 15 days, down from 28 days a month prior. Month-on-month rises to the average two- and five-year fixed mortgage rates were more modest.

 

Mortgage shelf-life drops and lenders increase rates

Moneyfacts UK Mortgage Trends Treasury Report data reveals the average shelf-life of a mortgage has dropped to 15 days, down from 28 days a month prior. Month-on-month rises to the average two- and five-year fixed mortgage rates were more modest.

 

  • Average mortgage rate rises on overall two- and five-year fixed rate deals were more modest compared to the month prior, up by 0.02%, the smallest monthly rises seen this year. These rates remain slightly lower compared to December 2023.
  • The overall average two- and five-year fixed rates rose between the start of May and the start of June, to 5.93% and 5.50% respectively. The average two-year fixed rate remains 0.43% higher than the five-year equivalent – the gap between these averages has not been higher than this since October 2023 (0.50%).
  • The average ‘revert to’ rate or Standard Variable Rate (SVR) remained at 8.18%, just shy of the highest recorded (8.19%) during November and December 2023.
  • The average two-year tracker variable mortgage fell to 5.94%.
  • Product choice overall rose month-on-month, to 6,629 options, its highest level since February 2008 (6,760).
  • The average shelf-life of a mortgage product fell to 15 days, its lowest since March, down from 28 days a month prior. The lowest shelf-life average on our records was 12 days in July 2023.

 

  • Average mortgage rate rises on overall two- and five-year fixed rate deals were more modest compared to the month prior, up by 0.02%, the smallest monthly rises seen this year. These rates remain slightly lower compared to December 2023.
  • The overall average two- and five-year fixed rates rose between the start of May and the start of June, to 5.93% and 5.50% respectively. The average two-year fixed rate remains 0.43% higher than the five-year equivalent – the gap between these averages has not been higher than this since October 2023 (0.50%).
  • The average ‘revert to’ rate or Standard Variable Rate (SVR) remained at 8.18%, just shy of the highest recorded (8.19%) during November and December 2023.
  • The average two-year tracker variable mortgage fell to 5.94%.
  • Product choice overall rose month-on-month, to 6,629 options, its highest level since February 2008 (6,760).
  • The average shelf-life of a mortgage product fell to 15 days, its lowest since March, down from 28 days a month prior. The lowest shelf-life average on our records was 12 days in July 2023.

 

Mortgage market analysis

 

Jun-22

Jun-23

Dec-23

May-24

Jun-24

Fixed and variable rate products

Total product count - all LTVs

4,987

4,967

5,694

6,565

6,629

Product count - 95% LTV

347

229

253

347

353

Product count - 90% LTV

672

636

718

791

792

Product count - 60% LTV

546

635

623

748

733

All products

Shelf life (days)

21

22

17

28

15

All LTVs

Average two-year fixed rate

3.25%

5.49%

6.04%

5.91%

5.93%

Average five-year fixed rate

3.37%

5.17%

5.65%

5.48%

5.50%

95% LTV

Average two-year fixed rate

3.46%

6.06%

6.34%

6.14%

6.20%

Average five-year fixed rate

3.54%

5.43%

5.73%

5.64%

5.73%

90% LTV

Average two-year fixed rate

3.27%

5.66%

6.01%

6.12%

6.15%

Average five-year fixed rate

3.35%

5.23%

5.71%

5.57%

5.61%

60% LTV

Average two-year fixed rate

2.91%

5.11%

5.59%

5.45%

5.45%

Average five-year fixed rate

3.05%

4.85%

5.20%

5.08%

5.06%

All LTVs

Standard Variable Rate (SVR)

4.91%

7.52%

8.19%

8.18%

8.18%

All LTVs

Average two-year tracker rate

2.54%

5.32%

6.16%

6.12%

5.94%

Data shown is as at the first available day of the month, unless stated otherwise.

Source: Moneyfacts Treasury Reports

 

Mortgage market analysis

 

Jun-22

Jun-23

Dec-23

May-24

Jun-24

Fixed and variable rate products

Total product count - all LTVs

4,987

4,967

5,694

6,565

6,629

Product count - 95% LTV

347

229

253

347

353

Product count - 90% LTV

672

636

718

791

792

Product count - 60% LTV

546

635

623

748

733

All products

Shelf life (days)

21

22

17

28

15

All LTVs

Average two-year fixed rate

3.25%

5.49%

6.04%

5.91%

5.93%

Average five-year fixed rate

3.37%

5.17%

5.65%

5.48%

5.50%

95% LTV

Average two-year fixed rate

3.46%

6.06%

6.34%

6.14%

6.20%

Average five-year fixed rate

3.54%

5.43%

5.73%

5.64%

5.73%

90% LTV

Average two-year fixed rate

3.27%

5.66%

6.01%

6.12%

6.15%

Average five-year fixed rate

3.35%

5.23%

5.71%

5.57%

5.61%

60% LTV

Average two-year fixed rate

2.91%

5.11%

5.59%

5.45%

5.45%

Average five-year fixed rate

3.05%

4.85%

5.20%

5.08%

5.06%

All LTVs

Standard Variable Rate (SVR)

4.91%

7.52%

8.19%

8.18%

8.18%

All LTVs

Average two-year tracker rate

2.54%

5.32%

6.16%

6.12%

5.94%

Data shown is as at the first available day of the month, unless stated otherwise.

Source: Moneyfacts Treasury Reports

 

Rachel Springall, Finance Expert at Moneyfacts, said:

“Borrowers may feel disheartened to see another consecutive month of rises to the average two- and five-year fixed mortgage rates. However, both rose by a modest 0.02%, the smallest month-on-month rise this year. The incentive to fix for longer remains, with the average five-year fixed rate standing 0.43% lower than its two-year counterpart, and the incentive to remortgage is prevalent, as the average Standard Variable Rate (SVR) stands at 8.18%. Lenders spent the first few weeks of May repricing, in reaction to a volatile swap rate market, but the latter end of the month was more subdued, around the time the Government announced there would be a General Election in July.

“Despite the small uplift in rates, there was another rise in the overall product availability of residential mortgages, standing at its highest point in 16 years. As lenders reviewed their ranges, which included repricing, launches and withdrawals, the moves led to the average shelf-life of a mortgage plummeting to 15 days, down from 28 days at the start of  May. Year-on-year the overall availability of mortgages has risen by 1,662 deals, and within that pool of products, there are 156 more at 90% loan-to-value (LTV) and 124 more at 95% LTV. These rises are good news for borrowers who may be struggling to build a big enough deposit to secure a new deal. On the other end of the spectrum, there are just 98 more deals at 60% LTV, and month-on-month, there was a slight fall of 15 deals.

“Consumers concerned about rising rates would be wise to seek advice from an independent broker to see if they can lock into a deal early, as some will let borrowers do this from three to six months in advance. However, there may well be some borrowers sitting on the fence, hoping the market gets a base rate cut this year, but they could still grab a lower rate deal than if they were to sit on their SVR without fixing, such as with a tracker deal. Those about to come off a five-year fixed mortgage will have to face the reality that rates are much higher now on an equivalent deal, 2.65% in fact, compared to June 2019, so consumers must ensure they can afford the higher repayments.”

Rachel Springall, Finance Expert at Moneyfacts, said:

“Borrowers may feel disheartened to see another consecutive month of rises to the average two- and five-year fixed mortgage rates. However, both rose by a modest 0.02%, the smallest month-on-month rise this year. The incentive to fix for longer remains, with the average five-year fixed rate standing 0.43% lower than its two-year counterpart, and the incentive to remortgage is prevalent, as the average Standard Variable Rate (SVR) stands at 8.18%. Lenders spent the first few weeks of May repricing, in reaction to a volatile swap rate market, but the latter end of the month was more subdued, around the time the Government announced there would be a General Election in July.

“Despite the small uplift in rates, there was another rise in the overall product availability of residential mortgages, standing at its highest point in 16 years. As lenders reviewed their ranges, which included repricing, launches and withdrawals, the moves led to the average shelf-life of a mortgage plummeting to 15 days, down from 28 days at the start of  May. Year-on-year the overall availability of mortgages has risen by 1,662 deals, and within that pool of products, there are 156 more at 90% loan-to-value (LTV) and 124 more at 95% LTV. These rises are good news for borrowers who may be struggling to build a big enough deposit to secure a new deal. On the other end of the spectrum, there are just 98 more deals at 60% LTV, and month-on-month, there was a slight fall of 15 deals.

“Consumers concerned about rising rates would be wise to seek advice from an independent broker to see if they can lock into a deal early, as some will let borrowers do this from three to six months in advance. However, there may well be some borrowers sitting on the fence, hoping the market gets a base rate cut this year, but they could still grab a lower rate deal than if they were to sit on their SVR without fixing, such as with a tracker deal. Those about to come off a five-year fixed mortgage will have to face the reality that rates are much higher now on an equivalent deal, 2.65% in fact, compared to June 2019, so consumers must ensure they can afford the higher repayments.”

Notes to editors

Pioneering financial comparison technology for over 35 years.

Moneyfacts Group plc is the UK’s leading provider of retail financial product data. Used by virtually every bank and building society in the UK, and supplied to the Bank of England, Financial Conduct Authority, Financial Ombudsman Service, HM Treasury, Prudential Regulatory Authority and UK Finance.

Our expert research team monitors the thousands of mortgages, savings, credit card, personal loan, business banking, life, pension and investment products in the UK.

Moneyfacts is the UK's leading independent provider of finance product data. For over 35 years Moneyfacts' information has been a key driver behind personal finance product decisions.

For more information about us please see our key facts.

Broadcast

Our broadcast suite enables our finance experts to appear in-vision for television, and we regularly comment live on national and regional radio.

To arrange an interview for radio or television, please contact our press department. We have an in-house broadcast room.

 

Notes to editors

Pioneering financial comparison technology for over 35 years.

Moneyfacts Group plc is the UK’s leading provider of retail financial product data. Used by virtually every bank and building society in the UK, and supplied to the Bank of England, Financial Conduct Authority, Financial Ombudsman Service, HM Treasury, Prudential Regulatory Authority and UK Finance.

Our expert research team monitors the thousands of mortgages, savings, credit card, personal loan, business banking, life, pension and investment products in the UK.

Moneyfacts is the UK's leading independent provider of finance product data. For over 35 years Moneyfacts' information has been a key driver behind personal finance product decisions.

For more information about us please see our key facts.

Broadcast

Our broadcast suite enables our finance experts to appear in-vision for television, and we regularly comment live on national and regional radio.

To arrange an interview for radio or television, please contact our press department. We have an in-house broadcast room.

 

Contact Us If you're looking for extra comment, a chart or more information, then please give us a call. We are always more than happy to help.
James Hyde Press & PR Manager
Rachel Springall Press Officer / Finance Expert
Caitlyn Eastell Apprentice Press & PR Assistant