The Moneyfacts UK Mortgage Trends Treasury Report said that although the market had settled in April, it was still more challenging for first-time buyers.
Mortgage product choice has contracted by around 10% since the start of March, while higher-loan-to-value (LTV) deals fell by 14%.
The overall product count fell from 7,484 in March to 6,201 in April, before improving to 6,784 in May.
There were 583 more options, but this accounted for less than half of the 1,283 deals lost the month before.
At 95% LTV, there were 541 mortgages available in March, and this rose to 368 in April. As of May, there are 436 deals at 95% LTV.
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The number of 90% LTV products dropped from 979 in March to 759 in April, before improving to 871 in May.
Across the 60% LTV tier, the product count fell from 820 to 739 over March to April, then rose to 791 in May.
Mortgages stayed on the shelf for longer in May, with the average shelf life doubling from eight to 16 days.
Rachel Springall, finance expert at Moneyfacts, said: “Borrowers may feel partially relieved by the period of calm after absolute mortgage mayhem, but first-time buyers bear the brunt.
“Lenders slowly brought back deals and shifted to making cuts over hikes during April.”
Springall said there was still room for improvement, as less than half the deals had returned to the market, adding that first-time buyers would be “frustrated” about their options at higher LTVs.
She said: “The global pressures caused by the conflict in the Middle East completely flipped the expected path of inflation and future rate setting, which caused lenders to pull deals and hike fixed rates. Thankfully, the calm of product churn during April, compared to the upheaval in March, resulted in the average shelf life of a deal returning to a more realistic window, doubling from around a week to just over two weeks.”
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Mortgage market analysis |
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May 2024 |
May 2025 |
Nov 2025 |
Apr 2026 |
May 2026 |
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Fixed and variable rate products |
Total product count – all LTVs |
6,565 |
6,993 |
6,918 |
6,201 |
6,784 |
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Product count – 95% LTV |
347 |
462 |
465 |
368 |
436 |
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|
Product count – 90% LTV |
791 |
876 |
897 |
759 |
871 |
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|
Product count – 60% LTV |
748 |
786 |
787 |
739 |
791 |
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All products |
Shelf life (days) |
28 |
19 |
21 |
8 |
16 |
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All LTVs |
Average two-year fixed rate |
5.91% |
5.18% |
4.94% |
5.84% |
5.78% |
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Average five-year fixed rate |
5.48% |
5.1% |
5.01% |
5.75% |
5.68% |
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|
95% LTV |
Average two-year fixed rate |
6.14% |
5.63% |
5.41% |
6.4% |
6.33% |
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Average five-year fixed rate |
5.64% |
5.58% |
5.41% |
6.18% |
6.06% |
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90% LTV |
Average two-year fixed rate |
6.12% |
5.42% |
5.24% |
6.12% |
6.05% |
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Average five-year fixed rate |
5.57% |
5.24% |
5.16% |
5.98% |
5.87% |
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60% LTV |
Average two-year fixed rate |
5.45% |
4.65% |
4.43% |
5.39% |
5.28% |
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Average five-year fixed rate |
5.08% |
4.58% |
4.67% |
5.43% |
5.35% |
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All LTVs |
Standard variable rate (SVR) |
8.18% |
7.58% |
7.27% |
7.13% |
7.13% |
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All LTVs |
Average two-year tracker rate |
6.12% |
5.16% |
4.66% |
4.69% |
4.61% |
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Data shown is as at the first available day of the month, unless stated otherwise. |
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Source: Moneyfacts Treasury Reports |
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Slight easing in average rates
Since the start of April, the average two-year fixed rate fell by 0.06% to 5.78% and the average five-year fix by 0.07% to 5.68%. However, average rates remain higher than at the start of March, at 4.84% and 4.96% respectively.
Meanwhile, higher LTV rates remained above 6%, except for the typical five-year fix at 90% LTV, which was 5.87%.
SVRs are still higher than average fixed rates, which stand at 7.13%, down from 7.58% last year. This is also notably below the highest recorded average of 8.19% during November and December 2023.
Springall said: “Higher interest rates, the lack of affordable housing and the potential for a spike in the cost of living can all damage the mortgage market. Support and innovation from lenders will be vital to keep the market moving. The strain of high payments will make borrowers consider a longer-term deal, such as for 35 years or 40 years to make initial payments more manageable. However, this means paying more interest overall, so making overpayments where possible to reduce the debt and mortgage term is wise.
“It is understandable to see why affordability for borrowers continues to be stretched, incomes are not stretching far enough to acquire a mortgage and those trapped in the rental cycle struggle to build a sizeable deposit.”
