Fixed rates rise for the first time since April as renewed Middle East tensions drive deals off shelves in 11 days
Lenders pushed average mortgage rates higher in July amid swap rate volatility driven by renewed unrest in the Middle East, reversing three consecutive months of fixed rate cuts, according to data from the Moneyfacts UK Mortgage Trends Treasury Report.
The Moneyfacts Average New Mortgage Rate climbed 0.12% from 5.47% in July to 5.59% at the start of August, unwinding the equivalent reduction recorded the previous month. The rate has not been below 5% since March 2026, when it stood at 4.90%.
Average two- and five-year fixed rates rose month-on-month for the first time since April, increasing by 0.11% and 0.14% to 5.63% and 5.66% respectively. Borrowers with a 5% deposit or equity stake will find the average five-year fixed rate at 95% loan-to-value (LTV) has now crossed above 6%.
Product churn accelerated throughout the month. The average shelf-life of a mortgage deal fell to 11 days — three days shorter than in June and the lowest recorded since April 2026, when market turmoil compressed it to just eight days.
Despite the rate pressure, mortgage product availability continued to grow. Choice increased for a fourth consecutive month, rising by 180 deals to 7,357, meaning that approximately 90% of products withdrawn between March and April have since returned to the market.
The incentive to remortgage remains intact. The average standard variable rate (SVR) stands at 7.13%, down 0.29% year-on-year from 7.42%, and well above current fixed rate offerings. The SVR peaked at 8.19% in November and December 2023.
| Mortgage market analysis | ||||||
|---|---|---|---|---|---|---|
| Aug- 24 |
Aug- 25 |
Feb- 26 |
Jul-26 | Aug-26 | ||
| Fixed and variable rate products | Total product count – all LTVs | 6,657 | 6,842 | 7,537 | 7,177 | 7,357 |
| Product count – 95% LTV | 353 | 442 | 537 | 450 | 495 | |
| Product count – 90% LTV | 758 | 882 | 981 | 913 | 939 | |
| Product count – 60% LTV | 755 | 781 | 811 | 835 | 831 | |
| All products | Shelf-life (days) | 17 | 17 | 33 | 14 | 11 |
| All LTVs | Average two-year fixed rate | 5.77% | 5.01% | 4.85% | 5.52% | 5.63% |
| Average five-year fixed rate | 5.38% | 5.01% | 4.94% | 5.52% | 5.66% | |
| 95% LTV | Average two-year fixed rate | 6.17% | 5.48% | 5.42% | 6.13% | 6.20% |
| Average five-year fixed rate | 5.67% | 5.42% | 5.41% | 5.92% | 6.08% | |
| 90% LTV | Average two-year fixed rate | 5.98% | 5.33% | 5.10% | 5.76% | 5.84% |
| Average five-year fixed rate | 5.47% | 5.19% | 5.09% | 5.60% | 5.75% | |
| 60% LTV | Average two-year fixed rate | 5.25% | 4.46% | 4.21% | 4.97% | 5.17% |
| Average five-year fixed rate | 4.88% | 4.59% | 4.53% | 5.23% | 5.46% | |
| All LTVs | Standard Variable Rate (SVR) | 8.16% | 7.42% | 7.15% | 7.13% | 7.13% |
| All LTVs | Average two-year tracker rate | 5.95% | 4.91% | 4.41% | 4.49% | 4.52% |
| Data shown is as at the first available day of the month, unless stated otherwise. | ||||||
| Source: Moneyfacts Treasury Reports | ||||||
"Lenders were somewhat forced to U-turn on fixed rate cuts in July, knocking back the short-lived progress of three consecutive months of reductions to the average two- and five-year fixed rates," said Rachel Springall (pictured right), finance expert at Moneyfacts.
Springall attributed the reversal to swap rate volatility stemming from renewed Middle East unrest, which has pushed up oil and energy prices, stoking inflationary fears and raising the prospect of future Bank of England base rate increases.
She warned that the rapid repricing of lender ranges had compressed the average shelf-life of a mortgage deal to just 11 days — its lowest since April — making early advice more important than ever for those approaching remortgage.
Springall noted that while switching to an existing lender offers convenience, borrowers should shop around first, particularly those coming off low-rate deals. She, however, stressed that "waiting too long to secure a new deal could be an expensive mistake."
On product availability, Springall said choice had risen for a fourth consecutive month, with 90% of deals returning following the mass withdrawals between March and April, including at higher LTV tiers such as 95% and 90%.
"There is always more room for improvement to the choice of deals in this sector, especially to draw in new business from first-time buyers, who remain the lifeblood of the mortgage market," she said.
"After a significantly volatile few months, it will be vital for lenders to tailor their ranges to cater to demand and support existing customers, such as tweaking affordability criteria or offering upfront cost-saving packages."
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