Lenders slash rates and improve choice for borrowers

Rachel Springall, Press Officer / Finance Expert 01603 476210 Email Rachel

Lenders slash rates and improve choice for borrowers

Moneyfacts UK Mortgage Trends Treasury Report data reveals the average two- and five-year fixed mortgage rates fell month-on-month by notable margins, now both at their lowest levels since the start of September 2022, before the ‘mini-Budget’. Overall product choice grew to surpass 7,000 options and the average shelf-life of a deal fell to 18 days. There has been a notable drive by lenders to expand choice on low deposit deals during 2025.

Lenders slash rates and improve choice for borrowers

Product choice overall rose month-on-month, to 7,054 options, close to a record-high.
The drive to support borrowers seeking higher loan-to-value deals has been evident over the past 12 months. Year-on-year deals at 95% LTV rose by 111 and those at 90% LTV rose by 155, no other LTV tier has risen by more than 100 deals year-on-year.
Average mortgage rates on two- and five-year fixed deals fell by 0.08% and 0.10%, to 4.86% and 4.91% respectively, both now at their lowest points since September 2022. It is the first time the average five-year fixed rate has dropped below 5% since May 2023.
The Moneyfacts Average Mortgage Rate fell to 4.91% month-on-month from 4.99%. Year-on-year the rate is down by 0.53%, from 5.44% in December 2024.
Mortgage activity led to a fall in the average shelf-life of a mortgage to 18 days.
The average two-year tracker variable mortgage rate remained unchanged at 4.66% month-on-month but has fallen by 0.80% year-on-year from 5.46%.
The average ‘revert to’ rate or Standard Variable Rate (SVR) remained at 7.27% month-on-month, but down by 0.58% year-on-year from 7.85%. In comparison, the highest recorded was 8.19% during November and December 2023.

Product choice overall rose month-on-month, to 7,054 options, close to a record-high.
The drive to support borrowers seeking higher loan-to-value deals has been evident over the past 12 months. Year-on-year deals at 95% LTV rose by 111 and those at 90% LTV rose by 155, no other LTV tier has risen by more than 100 deals year-on-year.
Average mortgage rates on two- and five-year fixed deals fell by 0.08% and 0.10%, to 4.86% and 4.91% respectively, both now at their lowest points since September 2022. It is the first time the average five-year fixed rate has dropped below 5% since May 2023.
The Moneyfacts Average Mortgage Rate fell to 4.91% month-on-month from 4.99%. Year-on-year the rate is down by 0.53%, from 5.44% in December 2024.
Mortgage activity led to a fall in the average shelf-life of a mortgage to 18 days.
The average two-year tracker variable mortgage rate remained unchanged at 4.66% month-on-month but has fallen by 0.80% year-on-year from 5.46%.
The average ‘revert to’ rate or Standard Variable Rate (SVR) remained at 7.27% month-on-month, but down by 0.58% year-on-year from 7.85%. In comparison, the highest recorded was 8.19% during November and December 2023.

Rachel Springall, Finance Expert at Moneyfacts, 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% 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. The average two-year fixed rate noted its biggest monthly fall since August this year, with the five-year noting its largest monthly fall in over six months (March 2025). The activity during November led to a drop in the average shelf-life of a mortgage to just 18 days, and product choice felt a positive rise to breach 7,000 deals.

“Year-on-year the mortgage market has seen an optimistic shift in the availability of products aimed at borrowers with a small deposit or equity, with almost 300 products added to the roster at 90% and 95% loan-to-value. The volume of deals at these tiers now rests at their highest counts since March 2008. The Government has been very vocal that it wants lenders to do more to support buyers to boost UK growth, so any improvement in high loan-to-value deals should be celebrated as it gives borrowers more choice as competition ramps up.

“The improvement in cost and product availability of mortgages paints a positive picture for borrowers as we edge towards the New Year. This year has not been without a few ups and downs for rate moves and product availability, but all signs are looking encouraging for the mortgage market to thrive moving into 2026. The Budget has been and gone, expectations for another base rate cut are high, and muted house price growth as a combination can lead to optimistic sentiment among buyers. However, those who locked into a cheap fixed deal five years ago will need to accept that they will have to cover higher repayments, with the Bank of England expecting 3.9 million households will refinance onto higher rates over the next three years. Seeking advice in the first instance before buying or remortgaging will be essential to help borrowers navigate the mortgage maze.”

Rachel Springall, Finance Expert at Moneyfacts, said:

Mortgage market analysis
		Dec-23	Dec-24	Jun-25	Nov-25	Dec-25
Fixed and variable rate products	Total product count - all LTVs	5,694	6,486	6,843	6,918	7,054
	Product count - 95% LTV	253	365	453	465	476
	Product count - 90% LTV	718	762	873	897	917
	Product count - 60% LTV	623	778	793	787	805
All products	Shelf-life (days)	17	21	17	21	18
All LTVs	Average two-year fixed rate	6.04%	5.52%	5.12%	4.94%	4.86%
All LTVs	Average five-year fixed rate	5.65%	5.28%	5.09%	5.01%	4.91%
95% LTV	Average two-year fixed rate	6.34%	5.92%	5.57%	5.41%	5.33%
95% LTV	Average five-year fixed rate	5.73%	5.53%	5.52%	5.41%	5.33%
90% LTV	Average two-year fixed rate	6.01%	5.80%	5.38%	5.24%	5.13%
90% LTV	Average five-year fixed rate	5.71%	5.40%	5.21%	5.16%	5.07%
60% LTV	Average two-year fixed rate	5.59%	5.04%	4.58%	4.43%	4.32%
60% LTV	Average five-year fixed rate	5.20%	4.86%	4.65%	4.67%	4.57%
All LTVs	Standard Variable Rate (SVR)	8.19%	7.85%	7.48%	7.27%	7.27%
All LTVs	Average two-year tracker rate	6.16%	5.46%	4.91%	4.66%	4.66%
Data shown is as at the first available day of the month, unless stated otherwise.
Source: Moneyfacts Treasury Reports

Moneyfacts Average Mortgage Rate
	Dec-23	Dec-24	Jun-25	Nov-25	Dec-25
Moneyfacts Average Mortgage Rate	5.88%	5.44%	5.12%	4.99%	4.91%
Calculated from the total of all on-sale, core market, fixed and variable tracker mortgages. Standard exclusions apply: Self-build only, shared ownership only, new build only, shared equity only, standard variable rates and adverse credit
Source: Moneyfacts Average Mortgage Rate.

Mortgage market analysis
		Dec-23	Dec-24	Jun-25	Nov-25	Dec-25
Fixed and variable rate products	Total product count - all LTVs	5,694	6,486	6,843	6,918	7,054
	Product count - 95% LTV	253	365	453	465	476
	Product count - 90% LTV	718	762	873	897	917
	Product count - 60% LTV	623	778	793	787	805
All products	Shelf-life (days)	17	21	17	21	18
All LTVs	Average two-year fixed rate	6.04%	5.52%	5.12%	4.94%	4.86%
All LTVs	Average five-year fixed rate	5.65%	5.28%	5.09%	5.01%	4.91%
95% LTV	Average two-year fixed rate	6.34%	5.92%	5.57%	5.41%	5.33%
95% LTV	Average five-year fixed rate	5.73%	5.53%	5.52%	5.41%	5.33%
90% LTV	Average two-year fixed rate	6.01%	5.80%	5.38%	5.24%	5.13%
90% LTV	Average five-year fixed rate	5.71%	5.40%	5.21%	5.16%	5.07%
60% LTV	Average two-year fixed rate	5.59%	5.04%	4.58%	4.43%	4.32%
60% LTV	Average five-year fixed rate	5.20%	4.86%	4.65%	4.67%	4.57%
All LTVs	Standard Variable Rate (SVR)	8.19%	7.85%	7.48%	7.27%	7.27%
All LTVs	Average two-year tracker rate	6.16%	5.46%	4.91%	4.66%	4.66%
Data shown is as at the first available day of the month, unless stated otherwise.
Source: Moneyfacts Treasury Reports

Moneyfacts Average Mortgage Rate
	Dec-23	Dec-24	Jun-25	Nov-25	Dec-25
Moneyfacts Average Mortgage Rate	5.88%	5.44%	5.12%	4.99%	4.91%
Calculated from the total of all on-sale, core market, fixed and variable tracker mortgages. Standard exclusions apply: Self-build only, shared ownership only, new build only, shared equity only, standard variable rates and adverse credit
Source: Moneyfacts Average Mortgage Rate.

Notes to editors

You are welcome to use part or all of this press release, so long as we are sufficiently sourced. We would appreciate a link back to Moneyfactsgroup.co.uk.

Pioneering financial comparison technology for over 35 years, Moneyfacts Group plc is the UK’s leading provider of retail financial product data. Used by virtually every bank and building society in the UK, and supplied to the Bank of England, Financial Conduct Authority, Financial Ombudsman Service, HM Treasury, Prudential Regulatory Authority and UK Finance.

Our expert research team monitors the thousands of mortgages, savings, credit card, personal loan, banking, life, pension and investment products in the UK.

For more information about us please see our key facts.

Broadcast

Our broadcast suite enables our finance experts to appear in-vision for television, and we regularly comment live on national and regional radio.

To arrange an interview for radio or television, please contact our press department. We have an in-house broadcast room.

Notes to editors

You are welcome to use part or all of this press release, so long as we are sufficiently sourced. We would appreciate a link back to Moneyfactsgroup.co.uk.

Our expert research team monitors the thousands of mortgages, savings, credit card, personal loan, banking, life, pension and investment products in the UK.

For more information about us please see our key facts.

Broadcast

Our broadcast suite enables our finance experts to appear in-vision for television, and we regularly comment live on national and regional radio.

To arrange an interview for radio or television, please contact our press department. We have an in-house broadcast room.

If you're looking for extra comment, a chart or more information, then please give us a call. We are always more than happy to help.

Adam French Head of News & Communications

01603 476154

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Rachel Springall Press Officer / Finance Expert

01603 476210

Email Rachel

Caitlyn Eastell Press & PR Executive

01603 476169

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