Current Mortgage Rates Across the UK
If you are considering buying a home, you may be wondering what the current mortgage rates look like.
Rates continue to shift regularly as lenders respond to changes in the wider economy, which is why keeping up to date is so important for both buyers and sellers.
The Bank of England recently reduced the Base Rate to 4% on 7 August 2025. Despite this cut, inflation rose slightly in July to 3.8% from 3.6% in June. This combination has influenced mortgage deals, with lenders adjusting their products accordingly.
As of 12 September 2025, the average two-year fixed mortgage rate stands at 4.53%, while the five-year fixed rate is 4.56%. The lowest available rates are more competitive, with 3.75% for a two-year fix and 3.89% for a five-year fix.
For buyers with smaller deposits of between 5% and 10%, average two-year fixed deals are around 5.18%, while five-year fixed options are 5.12%. Those with deposits between 15% and 25% are seeing slightly lower averages, with two-year fixes at 4.43% and five-year fixes at 4.46%. Buyers with 40% deposits are securing some of the best available deals, with two-year fixes at 3.97% and five-year fixes at 4.10%.
For context, a typical first-time buyer property priced at £227,466 would lead to an average monthly repayment of £1,064 on a five-year fixed, 85% loan-to-value mortgage over 25 years.
Looking ahead, analysts suggest the Base Rate could drop to around 3.75% by the end of 2025, although much will depend on inflation and economic stability.
For sellers, this is an encouraging moment to enter the market. Buyers remain motivated, rates are edging downward compared to last year, and demand for well-priced homes is strong. If you are thinking of selling, now could be the right time to take advantage of these conditions.
Call us today if you would like a conversation and a free valuation.
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