The common two- and five-year mounted rates have continued on the downward pattern for July, as lenders additionally relaxed stress exams.
This is in accordance with the most recent 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 mounted 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 mounted fee was 5.53%.
The common two- and five-year mounted rates had 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 rely since March 2025 (16 days).
Product alternative total rose month-on-month, to six,908 choices, up year-on-year (6,658 – July 2024), outdoors of May 2025 (6,993), this was final larger in October 2007 (7,421).
The common ‘revert to’ fee or customary variable fee (SVR) fell to 7.42%. In comparability, the very best recorded was 8.19% throughout November and December 2023.
Commenting on the most recent knowledge, Moneyfacts finance skilled Rachel Springall mentioned: “Fixed mortgage rates have continued on their downward pattern, which can delight the tens of millions of debtors because of refinance this 12 months. Lenders have additionally been enjoyable their stress take a look at guidelines, which can 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 mounted fee cuts calmed, seeing the typical two- and five-year mounted 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 mounted fee at 60% loan-to-value rose, and with the five-year mounted fee dropping by simply 0.01%, which might elevate issues over the diverging path of longer-term mounted rates.
“There are expectations for mounted fee cuts to warmth up this summer season throughout the spectrum, fuelled by swap fee volatility. The mortgage market has proven how far it has improved over current years, as debtors who locked right into a two-year mounted fee 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 per thirty days in repayments on a £250,000 mortgage over 25 years.”
The progress in total product availability has creates a optimistic sentiment, in accordance 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 largest plummet for the reason that ‘mini-Budget’ which prompted unprecedented chaos round each product alternative and mortgage curiosity rates.”
