The typical two- and five-year fastened charges have continued on the downward development, as lenders additionally relaxed stress checks, the newest Moneyfacts UK Mortgage Developments Treasury Report information has revealed.
The figures additionally present that mortgage product availability rose and the common shelf-life of a deal fell to 16 days whereas common mortgage charges on the general two- and five-year fastened charges fell by 0.03% and 0.01% to five.09% and 5.08%, respectively.
The typical two- and five-year fastened charges have been final decrease in September 2022 (4.24%) and October 2024 (5.07%) respectively.
Initially of July 2024, the common five-year fastened price was 5.53%; in comparison with the beginning of this month, the speed is 0.45% decrease at 5.08%. Nevertheless, the common two-year fastened price has fallen by 0.86% over the identical interval, down from 5.95% to five.09%.
The typical two-year fastened price is 0.01% larger than the five-year equal however that is the bottom the hole has been since charges turned inverted in October 2022.
The Moneyfacts Common Mortgage Charge fell to five.11%, down from 5.12% month-on-month. It’s down from 5.80% since July 2024, and decrease than 6.17% in July 2023.
The typical shelf-life of a mortgage product fell to 16 days, from 17 days a month in the past, now at its lowest rely since March 2025 (16 days).
Product selection general rose month-on-month, to six,908 choices, up year-on-year (6,658 – July 2024), outdoors of Could 2025 (6,993), this was final larger in October 2007 (7,421).
The typical two-year tracker variable mortgage price remained unchanged at 4.91%.
The typical ‘revert to’ price or Customary Variable Charge (SVR) fell to 7.42%. As compared, the very best recorded was 8.19% throughout November and December 2023.
| Mortgage market evaluation | ||||||
| Jul-23 | Jul-24 | Jan-25 | Jun-25 | Jul-25 | ||
| Fastened and variable price merchandise | Complete product rely – all LTVs | 4,396 | 6,658 | 6,508 | 6,843 | 6,908 |
| Product rely – 95% LTV | 188 | 361 | 366 | 453 | 447 | |
| Product rely – 90% LTV | 525 | 792 | 759 | 873 | 856 | |
| Product rely – 60% LTV | 511 | 741 | 780 | 793 | 800 | |
| All merchandise | Shelf-life (days) | 12 | 30 | 21 | 17 | 16 |
| All LTVs | Common two-year fastened price | 6.41% | 5.95% | 5.48% | 5.12% | 5.09% |
| Common five-year fastened price | 5.97% | 5.53% | 5.25% | 5.09% | 5.08% | |
| 95% LTV | Common two-year fastened price | 6.80% | 6.26% | 5.86% | 5.57% | 5.54% |
| Common five-year fastened price | 6.01% | 5.78% | 5.47% | 5.52% | 5.50% | |
| 90% LTV | Common two-year fastened price | 6.39% | 6.18% | 5.75% | 5.38% | 5.32% |
| Common five-year fastened price | 5.81% | 5.64% | 5.36% | 5.21% | 5.17% | |
| 60% LTV | Common two-year fastened price | 6.15% | 5.45% | 4.96% | 4.58% | 4.57% |
| Common five-year fastened price | 5.74% | 5.06% | 4.79% | 4.65% | 4.68% | |
| All LTVs | Customary Variable Charge (SVR) | 7.67% | 8.17% | 7.81% | 7.48% | 7.42% |
| All LTVs | Common two-year tracker price | 5.96% | 5.94% | 5.47% | 4.91% | 4.91% |
| Knowledge proven is as on the first obtainable day of the month, except said in any other case. | ||||||
| Supply: Moneyfacts Treasury Reviews | ||||||
| Moneyfacts Common Mortgage Charge | |||||
| Jul-23 | Jul-24 | Jan-25 | Jun-25 | Jul-25 | |
| Moneyfacts Common
Mortgage Charge |
6.17% | 5.80% | 5.40% | 5.12% | 5.11% |
| Calculated from the entire of all on-sale, core market, fastened and variable tracker mortgages. Customary exclusions apply: Self-build solely, shared possession solely, new construct solely, shared fairness solely, customary variable charges and antagonistic credit score | |||||
| Supply: Moneyfacts Common Mortgage Charge. | |||||
Rachel Springall, finance commentator at Moneyfacts, mentioned: “Fastened mortgage charges have continued on their downward development, which can delight the thousands and thousands of debtors attributable to refinance this yr. Lenders have additionally been enjoyable their stress check guidelines, which can additional increase affordability. The repricing momentum from lenders was rife in June, main to a different fall within the common shelf-life of a deal to 16 days. Nevertheless, the depth of fastened price cuts calmed, seeing the common two- and five-year fastened charges drop by 0.03% and 0.01%, respectively.
“A deeper dive into the loan-to-value (LTV) sectors additionally revealed the common five-year fastened price at 60% loan-to-value rose, and with the five-year fastened price dropping by simply 0.01%, it might elevate considerations over the diverging path of longer-term fastened charges. There are expectations for fastened price cuts to warmth up this summer season throughout the spectrum, fuelled by swap price volatility.
“The mortgage market has proven how far it has improved over latest years, as debtors who locked right into a two-year fastened price deal again in July 2023 would have been paying 6.41% in curiosity on common, in comparison with 5.09% now. That may be a distinction of £199 monthly in repayments on a £250,000 mortgage over 25 years.”
She continued: “The expansion in general product availability creates a constructive sentiment, and reaffirms the extra calming churn of mortgage ranges by lenders. This stance is way past the upheaval endured by the mortgage market two years in the past, when there was a drop of 571 merchandise between the beginning of June and July 2023, the largest plummet because the ‘mini-Funds’ which triggered unprecedented chaos round each product selection and mortgage rates of interest.
“Debtors won’t wish to see a repeat of such upheaval, particularly first-time consumers. These nervous in regards to the finish of the Mortgage Assure Scheme will discover negligible influence within the selection of mortgages at larger LTVs, and the Authorities is because of announce a brand new alternative this month.
“Within the meantime, the requires lenders to do extra haven’t been ignored, with leisure in stress checks underway, however there’s nonetheless no information on altering the loan-to-income (LTI) guidelines. There must be extra progress to assist first-time consumers, who stay the lifeblood of the mortgage market and to get mortgage prisoners switching offers. It’s important debtors search recommendation to navigate the newest offers obtainable to them.”
