Mortgage activity picked up during February, but new data from the Moneyfacts UK Mortgage Trends Treasury Report suggests the market is entering a fresh period of uncertainty.
Rachel Springall, Finance Expert at Moneyfacts, provides further insight on the data:
“Borrowers looking to refinance would be wise to act quickly to secure a new deal, as the significant push in mortgage activity during February has led to a significant fall in the average shelf-life of a mortgage to just 14 days. This is a complete contrast to the notable seasonal slowdown in activity during January. However, 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 (14 days) for over two years, last lower for August 2023, at 13 days. This was just one month after a record low of 12 days recorded for July 2023.
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 (BBR). The reason rests on the uncertainty surrounding tensions in the Middle East; this puts pressure on inflation, gilts and as a casualty, swap rates – the latter drives the cost of fixed rate mortgages. A hold to the BBR should not delay borrowers from refinancing, as they can still save a significant sum by moving off a Standard Variable Rate (SVR).
Seeking advice will be an essential step for borrowers to secure a competitive deal, whether a first-time buyer or those who need to refinance. 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. The overall choice in deals is also significantly higher, particularly those aimed at borrowers with small deposits.”
