The average mortgage shelf life has fallen to 16 days from 36 days a month ago, and average mortgage rates have reported their biggest fall since October.
According to a report from Moneyfacts, the average mortgage shelf life this time last year was 15 days, and in 2023, the average mortgage shelf life was 16 days.
The report found that average mortgage rates on overall two- and five-year fixed rates decreased by 0.13% and 0.1% to 5.39% and 5.22% respectively, which is the largest cut in around six months.
Looking at average fixed rate pricing last year, the average five-year fixed rate was 5.34%, while the average two-year fixed rate was 5.76%.
Moneyfacts said the margin between the average two-year fixed rate and the average five-year fixed rate was 0.17%, which is the lowest since January 2023.
The report noted that two-year fixed rates have been higher than five-year fixed rates since October 2022.
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Mortgage product choice came to 6,684, up from 6,451 last month and a rise from 6,004 last year. The report stated that product numbers were at their highest number since February 2008.
| Mortgage market analysis | ||||||
| Mar 2023 | Mar 2024 | Sep 2024 | Feb 2025 | Mar 2025 | ||
| Fixed and variable rate products | Total product count – all LTVs | 4,372 | 6,004 | 6,523 | 6,451 | 6,684 |
| Product count – 95% LTV | 161 | 318 | 348 | 388 | 395 | |
| Product count – 90% LTV | 546 | 761 | 747 | 760 | 772 | |
| Product count – 60% LTV | 657 | 677 | 748 | 741 | 778 | |
| All products | Shelf life (days) | 16 | 15 | 21 | 36 | 16 |
| All LTVs | Average two-year fixed rate | 5.32% | 5.76% | 5.56% | 5.52% | 5.39% |
| Average five-year fixed rate | 5% | 5.34% | 5.2% | 5.32% | 5.22% | |
| 95% LTV | Average two-year fixed rate | 5.85% | 5.99% | 6.03% | 5.94% | 5.83% |
| Average five-year fixed rate | 5.33% | 5.46% | 5.56% | 5.72% | 5.63% | |
| 90% LTV | Average two-year fixed rate | 5.5% | 5.99% | 5.85% | 5.8% | 5.69% |
| Average five-year fixed rate | 4.99% | 5.49% | 5.34% | 5.47% | 5.4% | |
| 60% LTV | Average two-year fixed rate | 5.01% | 5.23% | 5.02% | 4.98% | 4.86% |
| Average five-year fixed rate | 4.76% | 4.86% | 4.7% | 4.77% | 4.68% | |
| All LTVs | Standard variable rate (SVR) | 7.12% | 8.18% | 7.99% | 7.78% | 7.68% |
| All LTVs | Average two-year tracker rate | 4.84% | 6.15% | 5.68% | 5.46% | 5.18% |
| Data shown is as at the first available day of the month, unless stated otherwise. | ||||||
| Source: Moneyfacts Treasury Reports | ||||||
‘Rate cutting momentum’ fuelled shorter mortgage shelf life
Rachel Springall, finance expert at Moneyfacts, said the “rate cutting momentum was prevalent” during February.
“Such fierce competition in the aftermath of a typically subdued time of year showed a mix of moves, but it led to the average shelf life of a mortgage plummeting to 16 days at the start of March, down from 36 days at the start of February.
“The churn of ranges and rate moves circulated around swap rate volatility, but also due to a drop to the Bank of England base rate near the start of the month. Lenders typically act within a couple of weeks of any fierce rises or falls to swap rates,” she explained.
Springall noted that it is “uncertain whether the rate cutting sentiment will be sustained in the weeks to come”, but that those coming off cheaper fixed rates will be hoping for further cuts.
She added: “Borrowers who have little equity, or indeed a small deposit, may be pleased to see rates have dropped lower, with the average two-year fixed rate at 95% loan to value (LTV) seeing its biggest month-on-month cut in six months.
“Indeed, this month, the rate fell by 0.11%, the biggest cut since September 2024 of 0.14%, when the rate was last above 6% at 6.03%, down from 6.17% a month prior. It’s positive to see the rate drop further below 6% for those who may need to opt for a short-term fixed mortgage due to their circumstances.
“However, the five-year equivalent deals at 95% LTV continue to be priced lower on average, by 0.2%. First-time buyers in particular will have exhausted most of their savings for a deposit, so it’s important to find a deal with a competitive rate but also cost-saving incentives. Outside of the higher loan-to-value ratios, the number of deals at lower loan-to-value ratios rose up month-on-month, boosting choice for borrowers.”
Springall said Bank of England base rate cuts would “slowly get passed by lenders onto their customers’ SVR”, with the average rate having dropped down to 7.68% at the start of March, its lowest since July 2023, when the base rate sat at 5%.
“The incentive to remortgage from an SVR remains and it’s wise to use a broker to find the most suitable choice before falling onto such a rate. Borrowers must make sure to look beyond the headline-grabbing low fixed rates on the market and pick a deal that provides the best cost-saving package,” she noted.
