The average lifespan of a mortgage product on the market has plummeted to just two weeks, marking the shortest period seen in over two years, according to new data from financial information website Moneyfacts.
By the beginning of March, lenders were typically withdrawing mortgage deals after only 14 days.
This represents the most rapid turnover since August 2023, when the average 'shelf life' stood at 13 days.
This accelerated pace in the market comes as average mortgage rates have recently climbed above the 5 per cent threshold.
On Monday morning, the average two-year fixed-rate homeowner mortgage reached 5.20 per cent, a notable increase from 5.10 per cent recorded last Friday.
Similarly, the average five-year fixed deal rose to 5.25 per cent, up from 5.19 per cent at the end of last week, both figures representing significant highs in the current climate.
Even in the turbulent aftermath of the 2022 mini-budget under then-Prime Minister Liz Truss, which sent shockwaves through financial markets, the average mortgage shelf life was slightly longer, at 15 days.
However, mortgages have not disappeared in recent weeks as fast as they did in the aftermath of the mini-budget.
On Friday last week, Moneyfacts said at least 530 homeowner mortgage deals have vanished from the market since Monday March 9, representing about 7.5 per cent of deals.
But the biggest single day fall for residential mortgages recorded by Moneyfacts was the withdrawal of 935 products on September 27 2022, equating to a little more than 25 per cent of the deals available at the time.
In recent days, lenders have been scrambling to increase their mortgage rates and withdraw some products amid changing expectations in the financial markets following the conflict in the Middle East. Swap rates, which are used by lenders to price mortgages, have been increasing.
Rachel Springall, a finance expert at Moneyfacts, said: “Since this data was captured, there has been a notable shift in swap rates, amid the unrest seen in the Middle East.
“It is worth noting that the average shelf life of a mortgage has not been this low for over two years.”
The Bank of England is due to announce its next base rate decision on Thursday, with many economists expecting the rate to remain unchanged at 3.75 per cent, rowing back from previous expectations of a cut.
Ms Springall added: “The general optimism heading into 2026 for the market might have suffered a bit of a setback, as it is looking incredibly unlikely that the Monetary Policy Committee will favour a cut to the Bank of England base rate.
“The reason rests on the uncertainty surrounding tensions in the Middle East.”
But she said that borrowers who are sitting on a standard variable rate (SVR), which may happen when an initial mortgage deal ends, could still potentially make savings by taking out a new deal.”
She said: “The outlook might look a bit bleak for borrowers right now, but as we have experienced before, a short-term spike in market volatility can heal and interest rates are still far lower than they were a couple of years ago.”
