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First-time buyers bear the brunt of mortgage mayhem

ended 11. May 2026

Mortgage product choice has contracted by around 10% since the start of March, with higher loan-to-value deals (10% or less deposit or equity) falling by 14%, a blow to first-time buyers in particular, new research from Moneyfacts has found. Other key findings below. Any thoughts, ASAP please as story being written now.

  • Overall product choice rose month-on-month, up by 583 options, but this represents less than half of the deals lost the month prior (1,283). Lenders pulled products from sale due to uncertainty over the future path of interest rates.
  • Mortgage product churn calmed, the average shelf-life of a deal doubled from eight days to 16 days.
  • Since the start of April, the average two-year fixed rate fell by 0.06%, and the average five-year fell by 0.07%, to 5.78% and 5.68%, but these rates stand higher than at the start of March, 4.84% and 4.96%, respectively.
  • The Moneyfacts Average Mortgage Rate fell for the first time (month-on-month) since January 2026, to 5.66%, but remains higher than at the start of March at 4.90%.
  • The average two- and five-year fixed rates at 95% loan-to-value (LTV) remain above 6%.
  • Fixed rates are still lower than the average ‘revert to’ rate or Standard Variable Rate (SVR). The average SVR remains at 7.13%, down by 0.45% year-on-year from 7.58%. The highest recorded was 8.19% during November and December 2023.

3 responses from the Newspage community

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Editor
Emma JonesVerified
Managing Director at Whenthebanksaysno.co.uk
First-time buyers, as expected, are feeling the pain of recent mortgage market volatility the most. Product choice is down more than the average at higher LTVs and average fixed rates with just a 5% deposit are above 6%. There have been positive signs in recent weeks, with lenders cutting rates across the board after the sharp spike in March, but there is still lots of room for improvement. The one positive for FTBs is that they hold all the cards when they are making an offer on a property and can buy at a more competitive price compared to the start of the year.
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Katy EatentonVerified
Mortgage & Protection Specialist at Eatenton Finance
Conditions for first-time buyers are by no means ideal but they are better than what they were at the end of April, when the uncertainty caused by the conflict in the Middle East was extreme. Though there's less choice for FTBs, there is still enough choice overall and this segment of the market remains active, as now offers a perfect opportunity to get a property for a bargain price.
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Omer MehmetVerified
Managing Director at Trinity Finance
As these figures from Moneyfacts show, the mortgage market is still a shadow of its former self. However, things are starting to improve, with rates coming down and the shelf-life of mortgages now twice what it was a month or so ago. There are still lots of headwinds but, for now at least, things are moving in the right direction.