Mortgage choice has climbed back above 7,000 products for the first time in three months as lenders continue to cut fixed-rate deals and reprice their ranges in response to changing market conditions.
The latest Moneyfacts UK Mortgage Trends Treasury Report shows the number of residential mortgage products increased by almost 350 during May, taking overall availability above the 7,000 mark for the first time since March.
At the same time, average fixed mortgage rates fell for a second consecutive month. The average two-year fixed rate dropped by 0.10 percentage points to 5.68% – its largest monthly fall in more than a year – while the average five-year fixed rate declined to 5.63%.
The figures suggest competition between lenders is increasing again, with providers continuing to adjust pricing as swap rates fluctuate and expectations for future interest rates evolve.
Rachel Springall, finance specialist at Moneyfacts, said: “The mortgage market has shown countless times how it can recover after periods of turmoil, and once again, product choice is slowly on the road to recovery. It has now been three months since the conflict in the Middle East began which sent a shockwave of uncertainty across the markets. These events completely flipped the expected path of interest rate setting for 2026 and spooked lenders into pulling mortgage deals from sale. Thankfully, the volatility surrounding swap rates has eased somewhat and the average shelf-life of a mortgage deal now stands at 15 days, on par with a month prior and a much more reasonable length compared to just eight days back at the start of April. The calming product churn will no doubt delight borrowers, brokers and lenders who are trying to keep abreast of latest deals to hit the market.
“Fixed rates dropped for a consecutive month, with the average two-year fixed rate seeing its biggest monthly drop in over a year of 0.10%. However, as the future path of interest rates remains unclear, it is somewhat unsurprising to see fixed rate mortgage pricing displaying mixed moves, as the average five-year fixed deal only fell by 0.05%. The two- and five-year fixed mortgage rates have been inverted for three months, with the five-year priced under the two-year. Significant volatility in interest rates caused by more global events over the shorter-term can choke the mortgage market, as UK homeowners would traditionally pick a two- or five-year fixed deal, unlike those in other countries.
“There are approximately 1.8m fixed rate mortgages due to end in 2026, according to UK Finance, and already we have seen approvals reach the highest levels seen in over three years, according to the Bank of England. It is vital that borrowers seek advice to find the most appropriate deal, particularly so they are made aware of other costs. A recent study by Legal & General revealed over a third of consumers underestimated legal and property fees, which is why a mortgage deal with incentives can help. First-time buyers remain the lifeblood of the mortgage market, so it’s essential lenders support them with packages that help them save on the upfront cost. Relaxing loan-to-income rules can also help buyers, such as those on single incomes, who are struggling to find more affordable housing.”
| Mortgage market analysis | ||||||
| Jun-24 | Jun-25 | Dec-25 | May-26 | Jun-26 | ||
| Fixed and variable rate products | Total product count – all LTVs | 6,629 | 6,843 | 7,054 | 6,784 | 7,132 |
| Product count – 95% LTV | 353 | 453 | 476 | 436 | 466 | |
| Product count – 90% LTV | 792 | 873 | 917 | 871 | 891 | |
| Product count – 60% LTV | 733 | 793 | 805 | 791 | 810 | |
| All products | Shelf-life (days) | 15 | 17 | 18 | 16 | 15 |
| All LTVs | Average two-year fixed rate | 5.93% | 5.12% | 4.86% | 5.78% | 5.68% |
| Average five-year fixed rate | 5.50% | 5.09% | 4.91% | 5.68% | 5.63% | |
| 95% LTV | Average two-year fixed rate | 6.20% | 5.57% | 5.33% | 6.33% | 6.23% |
| Average five-year fixed rate | 5.73% | 5.52% | 5.33% | 6.06% | 6.02% | |
| 90% LTV | Average two-year fixed rate | 6.15% | 5.38% | 5.13% | 6.05% | 5.94% |
| Average five-year fixed rate | 5.61% | 5.21% | 5.07% | 5.87% | 5.73% | |
| 60% LTV | Average two-year fixed rate | 5.45% | 4.58% | 4.32% | 5.28% | 5.17% |
| Average five-year fixed rate | 5.06% | 4.65% | 4.57% | 5.35% | 5.29% | |
| All LTVs | Standard Variable Rate (SVR) | 8.18% | 7.48% | 7.27% | 7.13% | 7.13% |
| All LTVs | Average two-year tracker rate | 5.94% | 4.91% | 4.66% | 4.61% | 4.48% |
| Data shown is as at the first available day of the month, unless stated otherwise. | ||||||
| Source: Moneyfacts Treasury Reports | ||||||
| Moneyfacts Average Mortgage Rate | |||||
| Jun-24 | Jun-25 | Dec-25 | May-26 | Jun-26 | |
| Moneyfacts AverageMortgage Rate | 5.77% | 5.12% | 4.91% | 5.66% | 5.59% |
| Calculated from the total of all on-sale, core market, fixed and variable tracker mortgages. Standard exclusions apply: Self-build only, shared ownership only, new build only, shared equity only, standard variable rates and adverse credit | |||||
| Source: Moneyfacts Average Mortgage Rate. | |||||
