UK Mortgage Rates: What’s the Latest?
Mortgage rates steady as buyer confidence gradually returns.
If you’re planning to sell your property, now could be a favourable time to act. Encouragingly, the UK mortgage landscape has shown signs of stability and even improvement in recent months.
Currently, the average two- and five-year fixed mortgage rates both sit at 4.50%, with slight weekly decreases and notable drops compared to last year. The Bank of England recently cut the Base Rate to 4%, suggesting growing confidence in managing inflation, which rose modestly to 3.6% in June.
Buyers with higher deposits are seeing the most competitive rates. For example, those with a 40% deposit can access two-year fixed rates averaging just 3.89%, while five-year fixes come in at around 4.02%. Even those with smaller deposits are benefitting from improved conditions. A 95% LTV two-year fix remains at 5.19%, with similar stability across the board.
Why does this matter to sellers? Lower and steadier mortgage rates help boost buyer confidence and affordability. For a typical first-time buyer property priced at £227,466, someone with an 85% LTV mortgage on a five-year fix is now paying approximately £1,064 per month — a manageable figure that can open up the market to more potential purchasers.
Looking ahead, the Base Rate could fall further to around 3.75% by the end of 2025, assuming inflation stays in check. While further drops in mortgage rates aren’t guaranteed, the current trajectory is a positive sign.
With market conditions stabilising and borrowing costs easing, this could be a strategic moment to bring your home to market. Buyers are watching — and with the right timing, your sale could be next.
Call us today if you would like a conversation and a free valuation.
#property #selling #buying #mortgagerates #davidconwayestateagents
