Mortgage Rates and Updates

Average mortgage rates have fallen on a monthly basis, sinking to their lowest levels since the start of September 2022, data from Moneyfacts has revealed. 

 

Moneyfacts UK Mortgage Trends Treasury report found the average two and five-year mortgage fell over the past month to 4.86 per cent and 4.91 per cent respectively, the lowest level since before Liz Truss’s mini-Budget. 

 

This compares with the figures recorded in November when the average two-year stood at 4.94 per cent and the average five-year stood at 5.01 per cent. 

 

Similarly, it also represents a fall on a yearly basis as in December 2024 the average two-year stood at 5.52 per cent and the average five-year stood at 5.28 per cent. 

This compares with the figures recorded in November when the average two-year stood at 4.94 per cent and the average five-year stood at 5.01 per cent. 

 

Similarly, it also represents a fall on a yearly basis as in December 2024 the average two-year stood at 5.52 per cent and the average five-year stood at 5.28 per cent. 

 

Moneyfacts finance expert, Rachel Springall, said: “Mortgage rates continue on the downward trend and November was particularly fruitful for fixed rate cuts. 

 

“The re-pricing by lenders led to the average five-year fixed rate dropping below 5 per cent for the first time in over two years and sits at its lowest point since before the mini-Budget in September 2022, alongside its two-year counterpart.” 

 

Springall also pointed out the average two-year fixed rate noted its biggest monthly fall since August this year and the five-year experienced its largest fall in six months. 

 

Looking ahead to the new year, this paints a “positive picture” for borrowers. Whilst 2025 has not been without its ups and downs for rates and product availability, the signs are looking encouraging for the mortgage market to thrive moving into 2026. 

 

The Budget has been and gone and expectations for another base rate cut are high when the Bank of England Monetary Policy Committee meet next Thursday. 

 

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