Current Mortgage Rates – September 2025
Mortgage rates steady as fixes align
Mortgage rates remain a major talking point for buyers and homeowners, particularly as the Bank of England has chosen to keep the Base Rate steady at 4%. With inflation holding at 3.8% in August, the same level as July, many analysts believe the Bank is likely to remain cautious before considering any changes.
According to the latest data published on 27 September, the average two-year fixed rate is currently 4.53%, while the average five-year fixed rate sits slightly higher at 4.56%. This means both terms are effectively level, giving borrowers more flexibility when deciding whether to prioritise a shorter or longer fix.
For context, these averages are drawn from across 95% of the mortgage market, with deals typically including a fee of around £999. While individual lenders may price differently, the headline figures show only very modest shifts from the previous week, suggesting a broadly stable market.
The direction of mortgage rates over the coming months will depend on a range of economic factors, including how quickly inflation falls, the behaviour of swap rates, and the Bank of England’s decisions on monetary policy. At present, the outlook points to the Base Rate remaining at 4% for the rest of the year, with the possibility of cuts only emerging in 2026.
For borrowers, the message is one of careful planning. With two- and five-year deals priced almost identically, the choice may come down to individual circumstances, such as a preference for flexibility or long-term stability. Either way, the latest figures indicate a market that has settled into a more consistent rhythm following the turbulence of recent years.
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