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Mortgage product choice improves - Moneyfacts

ended 08. June 2026

New data in from Moneyfacts reveals overall product choice of residential mortgages has risen above 7,000 options for the first time since March 2026. The average two-year fixed rate fell by its biggest monthly margin in over a year. Key points below. Any thoughts, ASAP please.

  • Mortgage product choice has seen almost 350 more options returning in the space of a month, since the start of May 2026. Choice has now climbed back to over 7,000 options for the first time since the start of March 2026.
  • Mortgage product churn continued throughout May, the average shelf-life of a deal now stands at 15 days, one day fewer than the month prior. Lenders were catching up to re-price their deals amid moving swap rates.
  • Fixed mortgage rates dropped for a consecutive month, with the average two-year fixed rate seeing its biggest monthly fall in over a year (May 2025 – 0.14% drop). Since the start of May, the average two-year fixed rate fell by 0.10%, and the average five-year fell by 0.05%, to 5.68% and 5.63%. This is the second month of falls since rates shot up amid unrest over the future of interest rates.
  • The Moneyfacts Average Mortgage Rate fell by 0.07%, to 5.59%, down from 5.66% in May 2026 but the rate remains higher than at the start of March at 4.90%.
  • At 95% loan-to-value (LTV), the average two- and five-year fixed rates dipped slightly month-on-month, by 0.10% and 0.04% respectively to 6.23% and 6.02%.
  • 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 0.35% year-on-year from 7.48%. The highest recorded was 8.19% during November and December 2023.

4 responses from the Newspage community

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Aaron StruttVerified
Product and Communications Director at Trinity Financial
The mortgage market has been more stable over the last month and the banks and building societies have been lowering their fixed and tracker rates. There are lots of mortgage options whether you have a small deposit or need an income stretch, Net mortgage approvals for house purchases increased to 65,900 in April, above an average of around 63,100 over the previous six months. Worryingly net borrowing of mortgage debt by individuals decreased to £4.4 billion in April, from £6.8 billion in March, below the previous 6-month average of £5.1 billion. With such a big drop in lending some of the mortgage providers will be concerned and expect they will need to work even harder to attract borrowers. It is hard to shift more mortgages with fewer fixed or tracker rate options.
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Samuel Mather-HolgateVerified
Managing Director & IFA at Mather and Murray Financial
Just as new data comes out it already seems out of date. As the market was opening up again, missiles start flying between Iran and Isreal. This uncertainty will undoubtedly cause the range of products to shrink again as lenders assess the impact this will have on inflation, and rates.
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Editor
Harry GoodliffeVerified
Director at HTG Mortgages
A bigger mortgage market is usually a healthier mortgage market. Seeing product choice climb back above 7,000 and fixed rate SVR 0.35% lower year on year is a sign that lenders are competing harder for business. Borrowers shouldn't expect huge rate cuts, due to huge UK and world uncertainty, but having more choice and slightly lower rates puts them in a stronger position than they were just a few months ago.
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Jennie Livermore0
Mortgage & Protection adviser at Jennie Livermore
Product choice improving and rates edging down is positive, but the pace of change highlights just how quickly lenders are still reacting to market movements. Clients shouldn’t assume these drops will last, especially with swap rates shifting and deals changing every couple of weeks. Anyone needing certainty or coming up to a renewal should review their options early so they’re not caught out by sudden repricing.