A recent wave of price cuts is sweeping by the mortgage market, with lenders trimming costs and widening their product ranges. The shift affords debtors improved choices at a time when demand is starting to choose up and competitors amongst lenders is turning into fiercer.
The most recent Moneyfacts UK Mortgage Traits Treasury Report information reveals that the common two- and five-year fastened mortgage charges fell month-on-month by notable margins, now each at their lowest ranges because the begin of September 2022, earlier than the ‘mini-Price range’.
General product alternative grew to surpass 7,000 choices and the common shelf-life of a deal fell to 18 days. There was a notable drive by lenders to increase alternative on low deposit offers throughout 2025.
The figures present that product alternative elevated month-on-month to 7,054 choices, bringing availability near a document excessive. Over the previous 12 months, lenders have targeted closely on supporting debtors who want greater loan-to-value merchandise. Offers at 95% LTV rose by 111 year-on-year, whereas these at 90% LTV elevated by 155; no different LTV tier noticed development of greater than 100 merchandise over the identical interval.
Common mortgage charges continued to edge downwards. The everyday two-year fastened price fell by 0.08 proportion factors to 4.86%, whereas the five-year fastened dropped by 0.10 factors to 4.91%, its lowest stage since September 2022 and the primary time it has dipped beneath 5% since Might 2023. The Moneyfacts Common Mortgage Charge additionally declined, falling to 4.91% from 4.99% month-on-month and down from 5.44% a 12 months earlier.
Robust market exercise shortened the common shelf-life of a mortgage product to simply 18 days. In the meantime, the common two-year tracker price held regular at 4.66% month-on-month however has dropped by 0.80 proportion factors over the 12 months from 5.46%. The typical revert-to or Normal Variable Charge stayed at 7.27%, although that is 0.58 factors decrease than the 7.85% recorded a 12 months in the past. By comparability, the very best SVR stage reached was 8.19% in November and December 2023.
Rachel Springall, finance commentator at Moneyfacts, mentioned: “Mortgage charges proceed on the downward development and November was significantly fruitful for fastened price cuts. The re-pricing by lenders led to the common five-year fastened price dropping beneath 5% for the primary time in over two years and sits at its lowest level since earlier than the ‘mini-Price range’ in September 2022, alongside its two-year counterpart. The typical two-year fastened price famous its greatest month-to-month fall since August this 12 months, with the five-year noting its largest month-to-month fall in over six months (March 2025). The exercise throughout November led to a drop within the common shelf-life of a mortgage to simply 18 days, and product alternative felt a constructive rise to breach 7,000 offers.
“12 months-on-year the mortgage market has seen an optimistic shift within the availability of merchandise aimed toward debtors with a small deposit or fairness, with virtually 300 merchandise added to the roster at 90% and 95% loan-to-value. The quantity of offers at these tiers now rests at their highest counts since March 2008. The Authorities has been very vocal that it desires lenders to do extra to help consumers to spice up UK development, so any enchancment in excessive loan-to-value offers ought to be celebrated because it provides debtors extra alternative as competitors ramps up.
“The advance in value and product availability of mortgages paints a constructive image for debtors as we edge in the direction of the New 12 months. This 12 months has not been with out a few ups and downs for price strikes and product availability, however all indicators are trying encouraging for the mortgage market to thrive shifting into 2026. The Price range has been and gone, expectations for one more base price minimize are excessive, and muted home value development as a mix can result in optimistic sentiment amongst consumers. Nonetheless, those that locked into an inexpensive fastened deal 5 years in the past might want to settle for that they should cowl greater repayments, with the Financial institution of England anticipating 3.9 million households will refinance onto greater charges over the subsequent three years. Looking for recommendation within the first occasion earlier than shopping for or remortgaging might be important to assist debtors navigate the mortgage maze.”
| Mortgage market evaluation | ||||||
| Dec-23 | Dec-24 | Jun-25 | Nov-25 | Dec-25 | ||
| Mounted and variable price merchandise | Complete product depend – all LTVs | 5,694 | 6,486 | 6,843 | 6,918 | 7,054 |
| Product depend – 95% LTV | 253 | 365 | 453 | 465 | 476 | |
| Product depend – 90% LTV | 718 | 762 | 873 | 897 | 917 | |
| Product depend – 60% LTV | 623 | 778 | 793 | 787 | 805 | |
| All merchandise | Shelf-life (days) | 17 | 21 | 17 | 21 | 18 |
| All LTVs | Common two-year fastened price | 6.04% | 5.52% | 5.12% | 4.94% | 4.86% |
| Common five-year fastened price | 5.65% | 5.28% | 5.09% | 5.01% | 4.91% | |
| 95% LTV | Common two-year fastened price | 6.34% | 5.92% | 5.57% | 5.41% | 5.33% |
| Common five-year fastened price | 5.73% | 5.53% | 5.52% | 5.41% | 5.33% | |
| 90% LTV | Common two-year fastened price | 6.01% | 5.80% | 5.38% | 5.24% | 5.13% |
| Common five-year fastened price | 5.71% | 5.40% | 5.21% | 5.16% | 5.07% | |
| 60% LTV | Common two-year fastened price | 5.59% | 5.04% | 4.58% | 4.43% | 4.32% |
| Common five-year fastened price | 5.20% | 4.86% | 4.65% | 4.67% | 4.57% | |
| All LTVs | Normal Variable Charge (SVR) | 8.19% | 7.85% | 7.48% | 7.27% | 7.27% |
| All LTVs | Common two-year tracker price | 6.16% | 5.46% | 4.91% | 4.66% | 4.66% |
| Knowledge proven is as on the first out there day of the month, except acknowledged in any other case. | ||||||
| Supply: Moneyfacts Treasury Stories | ||||||
| Moneyfacts Common Mortgage Charge | |||||
| Dec-23 | Dec-24 | Jun-25 | Nov-25 | Dec-25 | |
| Moneyfacts Common
Mortgage Charge |
5.88% | 5.44% | 5.12% | 4.99% | 4.91% |
| Calculated from the overall of all on-sale, core market, fastened and variable tracker mortgages. Normal exclusions apply: Self-build solely, shared possession solely, new construct solely, shared fairness solely, commonplace variable charges and hostile credit score | |||||
| Supply: Moneyfacts Common Mortgage Charge. | |||||
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