Let’s talk Mortgage Rates
Purchasing a property with a mortgage should be simple, but with ever-changing interest rates, finding the right mortgage can be a challenging and daunting task.
Some property buyers decide to go it alone and some use brokers to do all the hard work.
One of the biggest challenges is finding the best mortgage rate on the market and with rates ever changing, mortgages can change daily.
However, if we look at the last 6 months in the UK, the overall trend shows a downward trajectory from spring highs.
The most attractive mortgage offers we have seen in the last 6 months were seen in late July / early August with some deals falling under 4% for the first time in well over 12 months.
Following the reduction in the Bank of England Base Rate, lenders across the board have begun reducing fixed rates again, making mortgages even more attractive.
At the 1st September averages have settled around 4.49% (2 year) and 4.51% (5 year) and in the most notable development of the last 6 months, for the first time since 2022, two-year fixed mortgage rates were slightly cheaper than five-year rates.
So what might borrowers see over the coming months?
Mortgage rates may edge down modestly, but not dramatically.
Fixed rates for two- and five-year deals are expected to mostly remain in the 4.0%–5.0% range, with the best deals potentially dipping close to 4% by early 2026.
Tracker and Standard Variable Rate mortgages may also see small reductions but only if lenders pass on base rate changes, which isn’t guaranteed.
All figures and trends mentioned are correct as of early September 2025, but rates are subject to change, so always check the latest data before making decisions.
The mortgage market can be tricky to navigate, but with the right information and advice, you can find a deal that works for you and your future.