Provider of retail financial product data, Moneyfacts, announced that although average rates have risen for a 10th consecutive month the average length of time for which mortgages remain on the market has plummeted to a new record low.

The details were published in the Moneyfacts UK Mortgage Trends Treasury Report.

The firm suggest that although cost-of-living crisis has increased pressure amongst prospective borrowers, by reducing their outgoings with a new mortgage deal they can save money.

Current mortgage rates

According to Moneyfacts, mortgage products currently have an average shelf life of 17 days. Compared to previous record lows in June 2022 this is four days lower. As a result, it gives borrowers less time to secure the product of their choice.

The overall five-year fixed rate average sits at 4.08% and has increased for a 10th successive month. This rate is now 1.44% above the rate recorded in December 2021 (2.64%).

The average overall two-year fixed rate is now 3.95%. This marks a 0.21% month-on-month increase and is 1.61% higher than in December 2021 (2.34%).

Moneyfacts also reveal that the average Standard Variable Rate (SVR) has risen by 0.11% month-on-month to 5.17%. Compared to December 2021, the average SVR has risen by 0.77%.

Eleanor Williams, Finance Expert at Moneyfacts, said: “Mortgage availability has dropped again this month, admittedly reducing at a less dramatic rate than recorded last month. August began with sight of 4,407 mortgages on offer, which is 149 fewer than were available at the start of July, meaning that the level of choice for borrowers has fallen again. Not only are there now fewer deals for borrowers to choose from, but the average shelf life for mortgage deals has plummeted to a new low of just 17 days this month. This reflects the speed at which providers are updating their offerings, but also means that those looking for a new mortgage have the shortest length of time we have ever recorded to try to secure their deal of choice.”

“Would-be borrowers will also note that the rates on offer are continuing to climb. The average overall five-year fixed rate mortgage has breached 4% for the first time in nearly eight years, reaching 4.08% this month, a high not seen since October 2014 (4.08%). The average two-year overall rate, currently 3.95% after another month-on-month increase, is the highest recorded in over nine years (Feb 2013 – 4.09%). However, the average SVR has also climbed, this month rising by 0.11% to 5.17%, so while the differential between this and the average fixed rates now available has shrunk, it’s clear that those on, or about to revert to an SVR, could save on their monthly mortgage repayments if they are able to lock into a new fixed deal.”