Volatility in swap rates means deals withdrawn or repriced

The average product shelf-life of a mortgage has fallen once again, standing at 13 days in October, compared to 14 in September. It follows lenders repricing or withdrawing products in response to fluctuations in swap rates.

The lowest shelf-life recorded this year was eight days in April, which followed the initial impact of the US-Iran conflict.

The latest figure, from the Moneyfacts UK Mortgage Trends Treasury Report, takes the annual average to 16 so far  – down from 43 days in 2019, 34 in 2020 and 20 in 2025.

A challenging market

Adam French, head of consumer finance at Moneyfacts, said this was challenging for would-be borrowers and their brokers. “Brokers and borrowers are navigating the most challenging mortgage market in modern records,” he said.

“Not only have rates been jumping up and down but the deals available today may not be here tomorrow either. The average mortgage product is lasting just 16 days on the market so far this year. That leaves borrowers with a much tighter window in which to find, compare and secure a competitive deal compared to any other on record. Previous events, such as the mini-Budget and the COVID pandemic, caused considerable disruption, but the prolonged nature of the volatility we have seen so far this year stands alone.

“Much of this uncertainty comes from the economic volatility being driven by the war in the Middle East. Each rumour of reconciliation or sudden escalation has influenced swap rates, which in turn influence the cost of funding fixed-rate mortgages. Lenders have little choice but to reprice their deals or withdraw them altogether when those costs change. Brokers have been working hard to help borrowers navigate this fast-moving market, but it is a tough time for consumers to make confident decisions.”