The Iran war and the consequent fear of rampant inflation has led to mayhem in the mortgage sector – with knock of effects for the housing market.
Data from independent service Moneyfacts shows that the average shelf-life of a mortgage is now just eight days – the lowest since Moneyfacts’ record began in 2011.
The previous lowest average lifespan of a mortgage was in July 2023, at just 12 days.
The average shelf-life is now lower than at the start of October 2022 (15 days) and the disastrous Liz Truss min-Budget.
Overall product choice shrank month-on-month, down by 1,283 options, falling below 7,000 options for the first time since November 2025.
The current pool of 6,201 options is at its lowest count in two years – in March 2024 it was 6,004.
Lenders pulled products from sale last month due to uncertainty over the future path of interest rates.
Since the start of March, the average two-year fixed rate increased by 1%, the biggest monthly rise since November 2022 (up by 1.04%), and the average five-year rose by 0.79%, the biggest monthly rise since July 2023 (up by 0.80%).
Fixed rates are still much lower than the average ‘revert to’ rate or Standard Variable Rate (SVR).
The average SVR remains at 7.13% month-on-month, down by 0.47% year-on-year from 7.60%.
The highest recorded was 8.19% during November and December 2023.
Rachel Springall, Finance Expert at Moneyfacts, says: “Unrest in the Middle East caused mortgage mayhem, with lenders rushing to pull products from sale and reprice at higher rates throughout March.
“Unfortunately, this has led to a drop of almost 400 options for borrowers with just a 5% or 10% deposit or equity, awful news for first-time buyers.
“The market overall has experienced the worst upheaval to mortgage choice since the mini-Budget, yet another blow for borrowers over the past five years, which includes the surge in interest rates during the summer of 2023 amid higher inflation expectations.
“Concerns surrounding the possibility of inflation getting out of control this year has completely flipped the projected path of interest rates.
“The start of 2026 appeared promising, especially for borrowers about to remortgage, but it’s all changed.
The tide could turn once the markets feel more confident about future rate pricing, but borrowers who are due to come off a deal soon will be incredibly frustrated by mortgage rate hikes.”
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