According to the latest Moneyfacts figures, the number of deals at 90% loan to value (LTV) and 95% LTV are close to 18-year highs, at 489 and 927 products respectively.
The report found that the average mortgage shelf life came to 21 days, which is in line with the same period last year but up from 18 days in December.
Moneyfacts said fixed mortgage rates have stayed below 5% in 2026, with the average two-year fixed rate standing at 4.83% – down 0.03% month-on-month – and the average five-year fixed rate coming to 4.91%. The latter is unchanged from December.
| Mortgage market analysis | ||||||
| Jan 2024 | Jan 2025 | Jul 2025 | Dec 2025 | Jan 2026 | ||
| Fixed and variable rate products | Total product count – all LTVs | 5,899 | 6,508 | 6,908 | 7,054 | 7,158 |
| Product count – 95% LTV | 270 | 366 | 447 | 476 | 489 | |
| Product count – 90% LTV | 733 | 759 | 856 | 917 | 927 | |
| Product count – 60% LTV | 682 | 780 | 800 | 805 | 809 | |
| All products | Shelf life (days) | 21 | 21 | 16 | 18 | 21 |
| All LTVs | Average two-year fixed rate | 5.93% | 5.48% | 5.09% | 4.86% | 4.83% |
| Average five-year fixed rate | 5.55% | 5.25% | 5.08% | 4.91% | 4.91% | |
| 95% LTV | Average two-year fixed rate | 6.21% | 5.86% | 5.54% | 5.33% | 5.29% |
| Average five-year fixed rate | 5.62% | 5.47% | 5.5% | 5.33% | 5.33% | |
| 90% LTV | Average two-year fixed rate | 5.94% | 5.75% | 5.32% | 5.13% | 5.09% |
| Average five-year fixed rate | 5.65% | 5.36% | 5.17% | 5.07% | 5.07% | |
| 60% LTV | Average two-year fixed rate | 5.41% | 4.96% | 4.57% | 4.32% | 4.28% |
| Average five-year fixed rate | 5.06% | 4.79% | 4.68% | 4.57% | 4.56% | |
| All LTVs | Standard variable rate (SVR) | 8.18% | 7.81% | 7.42% | 7.27% | 7.25% |
| All LTVs | Average two-year tracker rate | 6.15% | 5.47% | 4.91% | 4.66% | 4.44% |
| Data shown is as at the first available day of the month, unless stated otherwise. | ||||||
| Source: Moneyfacts Treasury Reports | ||||||
The report noted that the average two-year tracker variable mortgage rate fell to 4.44% from 4.66% month-on-month and is down by 1.03% year-on-year from 5.47%.
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Moneyfacts attributed the fall to cuts to the Bank of England base rate, with the most recent occurring in December.
The average SVR stood at 7.25% in January, down by 0.56% year-on-year from 7.81%. The highest recorded was 8.19% during November and December 2023.
Moneyfacts noted that this would further incentivise remortgage customers to opt for a fixed rate.
Expectations for ‘booming market’ in 2026
Rachel Springall, finance expert at Moneyfacts, said borrowers and lenders “will be in a state of optimism” going into 2026 due to a “positive 12 months for the mortgage market in 2025”.
“Expectations are high for a booming market in 2026. Mortgage rates are lower year-on-year, and the choice of deals is abundant. The relaxation in stress testing and expectations for further rate cuts will help ease the affordability constraints on borrowers.
“First-time buyers are not being left behind by this progress, as deals aimed at those with a low deposit now stand at their highest levels for almost 18 years, yet more progress to support under-served buyers would be welcomed amid a lack of affordable housing.
“Innovation is set to become a key talking point this year, as expanding options for first-time buyers and modernising regulation are some of the key themes to be reviewed by the Financial Conduct Authority, laid out in its ‘roadmap’ for the mortgage market,” she explained.
Springall noted that the start of a new year is usually a “slow burner for mortgage repricing”, but lower swap rates should incentivise lenders to pass on rate cuts in the coming weeks.
“As we have seen over the past few months, fixed rate cuts have been in abundance, fuelling healthy drops to the average two-year fixed mortgage rate, and many lenders appeared to pass on cuts by the Bank of England ahead of reductions to the base rate. Amid hopes of more cuts to come among borrowers, the appetite for a shorter-term fixed deal could outweigh the appeal of longer-term fixed mortgages,” she noted.
Springall said remortgage customers could make “substantial savings” when moving off a revert rate if they switch to a two-year fixed deal.
“Moving off the average revert rate of 7.25% to the average two-year fixed rate at 60% LTV of 4.28%, remortgage customers could save over £5,000 in repayments over one year, based on a mortgage of £250,000 over 25 years. As it stands, there is a rate difference of 0.28% on the average two-year fixed deal at 60% LTV versus the five-year fixed equivalent, so a shorter term may seem more appealing for those coming off a low fixed rate.
“UK Finance expects a 10% rise in external remortgaging in 2026, and 1.8 million fixed rate mortgages are due to come to an end this year. However, some of these will include buyers who managed to lock into a cheap rate in 2020, so they will need to seek advice for support if they are concerned about rising repayments by moving onto a higher fixed rate,” she noted.
