The common two- and five-year fixed rates have continued on the downward pattern for July, as lenders additionally relaxed stress tests.
This is in line with the newest Moneyfacts UK Mortgage Trends Treasury Report knowledge which additionally reveals that mortgage product availability rose and the typical shelf-life of a deal fell to 16 days.
Average mortgage rates on the general two- and five-year fixed rates fell by 0.03% and 0.01% to five.09% and 5.08%, respectively in July 2025.
At the beginning of July 2024, the typical five-year fixed price was 5.53%.
The common two- and five-year fixed rates have been final decrease in September 2022 (4.24%) and October 2024 (5.07%) respectively.
The common shelf-life of a mortgage product fell to 16 days, from 17 days a month in the past, now at its lowest depend since March 2025 (16 days).
Product alternative total rose month-on-month, to six,908 choices, up year-on-year (6,658 – July 2024), exterior of May 2025 (6,993), this was final larger in October 2007 (7,421).
The common ‘revert to’ price or commonplace variable price (SVR) fell to 7.42%. In comparability, the very best recorded was 8.19% throughout November and December 2023.
Commenting on the newest knowledge, Moneyfacts finance skilled Rachel Springall mentioned: “Fixed mortgage rates have continued on their downward pattern, which is able to delight the thousands and thousands of debtors as a result of refinance this 12 months. Lenders have additionally been relaxing their stress check guidelines, which is able to additional increase affordability.
“The repricing momentum from lenders was rife in June, main to a different fall within the common shelf-life of a deal to 16 days. However, the depth of fixed price cuts calmed, seeing the typical two- and five-year fixed rates drop by 0.03% and 0.01%, respectively.”
Longer-term rates
Springall added {that a} deeper dive into the loan-to-value (LTV) sectors additionally revealed the typical five-year fixed price at 60% loan-to-value rose, and with the five-year fixed price dropping by simply 0.01%, which may increase considerations over the diverging path of longer-term fixed rates.
“There are expectations for fixed price cuts to warmth up this summer time throughout the spectrum, fuelled by swap price volatility. The mortgage market has proven how far it has improved over current years, as debtors who locked right into a two-year fixed price deal again in July 2023 would have been paying 6.41% in curiosity on common, in comparison with 5.09% now. That is a distinction of £199 monthly in repayments on a £250,000 mortgage over 25 years.”
The development in total product availability has creates a optimistic sentiment, in line with Springall, reaffirming the extra calming churn of mortgage ranges by lenders.
“This stance is much past the upheaval endured by the mortgage market two years in the past, when there was a drop of 571 merchandise between the beginning of June and July 2023, the most important plummet because the ‘mini-Budget’ which triggered unprecedented chaos round each product alternative and mortgage curiosity rates.”
