The average shelf-life of a mortgage product fell to 17 days in July, having stood at 30 days a month earlier, Moneyfacts has revealed.

The firm’s UK mortgage trends treasury report found that the average two and five-year mortgage rates also fell month-on-month by 0.18% and 0.15% respectively, after five consecutive months of rises.

These rates are now at their lowest level since March.

Finance expert at Moneyfacts, Rachel Springall, said: "There are expectations for rates to fall further in the weeks to come, particularly as the market reflects on the 0.25% base rate cut, the first cut in over four years.

"The rise and fall of product choice was significant during July; the total count peaked at 6,949 on 19 July before falling to 6,621 just four days later. Choice slowly rose in the coming days to sit at 6,657 on 1 August, just one product shy of July’s total product count (6,658). The only increases in availability were seen in the lower 60% and 75% LTV brackets in August.

"At the other end of the LTV spectrum, in contrast to a prior rise in choice between June and July, the number of mortgages available at 95% LTV fell slightly by the start of August. However, the biggest month-on-month drop within any LTV bracket was at 80% LTV, which fell by 53 products, dropping to the lowest level since March 2024. This may come as disappointing news to borrowers with a limited deposit or equity, but choice could well bounce back in the coming months as lenders reassess their approach to lending at these higher LTV brackets."

The overall average two and five-year fixed rates fell between the start of July and start of August to 5.77% and 5.38% respectively.

Moneyfacts added that the two-year fixed rate has now been higher than the five-year equivalent since October 2022.

The average two-year tracker variable mortgage rose slightly to 5.95%, while the average standard variable rate fell to 8.16%, which is slightly less than the highest recorded (8.19%) during November and December 2023.

Springall added: "It is essential that borrowers move quickly to acquire a new deal if they are looking to refinance this year, or buy a property for the first time. Seeking advice from an independent broker is wise, particularly to keep abreast of the churn in products. The average standard variable rate is around 8% so the incentive to switch deals either to a fixed or tracker mortgage is clear.

"A variety of lenders priced their lowest rate deals even lower still over the past few weeks, leading to the return of sub-4% fixed rates towards the end of July, but borrowers must look beyond the initial rate and assess any mortgage based on the overall true cost."

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