Product choice across the mortgage market has registered the largest reduction in over a year, according to new data published by Moneyfacts.

The number of available mortgage products has fallen to 6,402 options, which was the biggest month-on-month reduction since July 2023.

Moneyfacts did also reveal that product numbers are substantially higher than two years ago – when they stood at 3,117 in November 2022 – at a time choice was significantly impacted in the aftermath of the Liz Truss mini-Budget.

The figures also showed that the average shelf-life of a mortgage product dropped to 17 days this month, down from 21 days a month previously.

Finance expert at Moneyfacts, Rachel Springall, said that borrowers would be “disappointed” to see product volatility within the mortgage market.

“There will be many borrowers coming off a cheap rate in the months ahead, so it’s imperative they seek a new offer and not default onto an expensive revert rate,” Springall commented.

“A longer-term fixed deal may be popular for peace of mind, but borrowers may remain on the fence on fixing for longer. There are expectations that the Bank of England will bring down base rate further next year, but recent events have led to uncertainty on fixed rate pricing. Swap rates have been on the rise since the Budget and lenders will traditionally increase fixed rates in response.”

Moneyfacts also revealed that average mortgage rates on the overall two-year fixed rate dipped by 0.01% this month, while the five-year fixed rate rose by 0.02%, to 5.39% and 5.09% respectively.

Figures also showed that the average two-year tracker variable mortgage rose slightly to 5.71%, while the average standard variable rate (SVR) fell to 7.95%. In comparison, the highest SVR recorded was 8.19% during November and December 2023.

“Lenders will no doubt be keeping a very close eye on the markets over the coming weeks and any borrowers concerned about mortgage affordability should seek independent advice with haste,” Springall added.

“As we have seen over the past month, mortgage deals are never guaranteed to last very long, and should this situation prolong, it poses a challenge for borrowers who are not quick off the mark.”

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