Mortgage activity in February resulted in a significant decline in the average life of a mortgage to fourteen days.
This is evident from the Moneyfacts UK Mortgage Trends Treasury Report, which shows that, having made a complete turnaround from the seasonal slowdown in January, the market is now entering a period of uncertainty under global pressure.
By comparison, the average shelf life was 15 days at the beginning of October 2022, when the ‘mini-Budget’ had an unprecedented impact on mortgage choice.
Total product choice decreased month-on-month, but remained above 7,000 options. Moneyfacts suggests lenders may attract more products until the future path of interest rates becomes clearer, but the choice typically returns after short-term turmoil.
Commenting on the latest data, Moneyfacts financial expert Rachel Springall said: “The general optimism for the market heading into 2026 may have suffered a bit of a setback as it seems incredibly unlikely that the Monetary Policy Committee will favor a cut in the Bank of England’s (BBR) base rate.
“The reason for this lies in the uncertainty surrounding tensions in the Middle East; this is putting pressure on inflation, government bonds and as a result swap rates – the latter driving up the cost of fixed rate mortgages. A hold on the BBR should not deter borrowers from refinancing as they can still save a significant amount by moving away from a standard variable rate (SVR).”