Mortgage Lenders Raise Rates as Deals Last Just 13 Days

UK homebuyers face higher borrowing costs and shrinking opportunities to secure competitive mortgage deals as lenders respond to volatile funding costs in October 2026. Moneyfacts data show mortgage products remained available for an average of just 13 days, while average fixed mortgage rates rose above 5.9%, complicating financial planning for buyers and homeowners refinancing existing loans.

According to Moneyfacts figures published in October, the average shelf life of a mortgage product fell to 13 days from 14 days in September. The average for 2026 stands at 16 days in the latest report, compared with 20 days in 2025 and 43 days in 2019. An earlier report put the year-to-date average at 15 days.

The market reached a record low in April, when mortgage products lasted an average of just eight days amid disruption associated with the US-Iran conflict. Although product availability subsequently improved, movements in swap rates have continued to prompt lenders to revise prices or withdraw offers.

Moneyfacts data also show the average two-year fixed mortgage rate rose from 5.59% in September to 5.93% in October. The average five-year fixed rate increased from 5.63% to 5.95%, while the Moneyfacts Average New Mortgage Rate climbed from 5.55% to 5.83% over the same period.

Despite higher borrowing costs, the number of available mortgage products increased from 7,516 in September to 8,696 in October. The wider selection has not eliminated the risk that borrowers could lose access to a competitive offer before completing their applications.

Adam French, head of consumer finance at Moneyfacts, described the conditions facing borrowers and mortgage brokers as unusually difficult.

"Brokers and borrowers are navigating the most challenging mortgage market in modern records. Not only have rates been jumping up and down but the deals available today may not be here tomorrow either."

French said the short availability window leaves borrowers with less time to compare products and secure suitable financing. He also highlighted the impact of geopolitical uncertainty on wholesale funding costs.

"That leaves borrowers with a much tighter window in which to find, compare and secure a competitive deal compared to any other on record."

According to French, changing expectations surrounding the US-Iran conflict have influenced swap rates, which affect the funding costs of fixed-rate mortgages. Lenders have responded by repricing or withdrawing products, leaving some applicants facing different rates if they delay their decisions.

Separately, property portal Rightmove reported that mortgage rates had reached 5.55%, compared with 5.29% the previous month and 4.25% before the conflict involving Iran began. Rightmove said the increase had added around £250 a month to the cost of a typical new mortgage since February.

Colleen Babcock of Rightmove said higher borrowing costs were placing additional pressure on affordability, including in areas where property prices are lower. The increased costs can affect the locations and property types buyers can afford.

Rightmove also identified uncertainty surrounding the upcoming Autumn budget as another factor influencing purchasing decisions. First-time buyers were particularly affected by uncertainty over details of the Your First Home scheme, which is intended to succeed Help to Buy.

Ian Harris, president of NAEA Propertymark, said the latest figures demonstrated the difficulties facing mortgage borrowers and emphasized the importance of early preparation.

"For borrowers, the key is to be prepared and seek advice early, particularly if their current fixed-rate deal is coming to an end."

Harris said borrowers should assess their financial circumstances and the overall cost of a mortgage rather than concentrating exclusively on the lowest advertised interest rate. He also noted that predicting future rate movements remains difficult.

"While it is difficult to predict where rates will go next, speaking to a mortgage broker can help borrowers understand their options and secure a suitable deal before it disappears. Crucially, decisions should be based on overall cost, affordability and individual circumstances, rather than simply chasing the lowest headline rate or trying to time the market."

Moneyfacts said many lenders allow existing customers to secure replacement mortgage products three to six months before their current fixed-rate arrangements expire. Arrangement fees and other product conditions also affect the overall cost of borrowing.