The latest Moneyfacts Mortgage Trends Treasury Report found that mortgage product choice has fallen significantly, with the total number of products dropping to 6,402 options.
This marked the largest reduction in over a year, with the average shelf-life of a mortgage also plummeting to 17 days in early November, down from 21 days the month before.Â
Despite the reduction, product numbers were notably higher than two years ago when there were only 3,117 options following the mini-Budget announcement in November 2022.
The average 2-year fixed rate dipped slightly by 0.01% to 5.39%, while the 5-year fixed rate increased by 0.02% to 5.09%.
The average 2-year fixed rate has now been higher than the 5-year equivalent since October 2022.
The average 2-year tracker variable mortgage rose to 5.71%, while the average revert to rate or Standard Variable Rate (SVR) fell to 7.95%, down from the highest recorded rate of 8.19% during November and December 2023.
Rachel Springall, finance expert at Moneyfacts, said: “Borrowers will be disappointed to see product volatility within the mortgage market, as choice plummeted and the shelf-life of a deal plunged to 17 days, down from 21 days month-on-month.
“These moves make it essential for prospective borrowers to act quickly to secure a new deal. There will be many borrowers coming off a cheap rate in the months ahead, so it’s imperative they seek a new offer and not default onto an expensive revert rate.
“A longer-term fixed deal may be popular for peace of mind, but borrowers may remain on the fence on fixing for longer.
“There are expectations that the Bank of England will bring down base rate further next year, but recent events have led to uncertainty on fixed rate pricing.”
She added: “Swap rates have been on the rise since the Budget and lenders will traditionally increase fixed rates in response.
“Mortgage affordability remains a key issue for these borrowers, but their importance to keep the market moving is undeniable.
“It is essential lenders make every effort to support these borrowers while also encouraging their existing customers to secure a new deal.
“Lenders will no doubt be keeping a very close eye on the markets over the coming weeks and any borrowers concerned about mortgage affordability should seek independent advice with haste.”
