The typical two-year fastened charges at each 95% and 90% loan-to-value (LTV) have fallen to their lowest ranges since September 2022, new information from the Moneyfacts UK Mortgage Tendencies Treasury Report has revealed.
The drop in pricing coincides with a surge within the variety of merchandise obtainable at 95% LTV, which has now reached its highest stage in 17 years, final seen in March 2008.
Lenders have been steadily lowering the price of low-deposit mortgages, driving the typical two-year fastened deal at 95% LTV down to five.41%. This marks the bottom level since September 2022, when the typical stood at 4.51%. Equally, the typical two-year fastened charge at 90% LTV has fallen to five.24%, additionally its lowest stage since September 2022, when it was 4.27%.
Throughout the broader market, the typical two- and five-year fastened charges dipped barely, down by 0.04% and 0.01% respectively, to 4.94% and 5.01%. This follows a small uptick in charges the earlier month — the primary enhance since February 2025.
Shorter-term fastened mortgages have seen the sharpest reductions over the previous 12 months. In November 2024, the typical five-year fastened charge stood at 5.09%, in contrast with 5.01% in the beginning of this month. In the meantime, the typical two-year fastened charge has fallen extra steeply, dropping by 0.45% over the identical interval, from 5.39% to 4.94%.
The general Moneyfacts Common Mortgage Fee now sits at 4.99%, down from 5.02% a month earlier, 5.31% in November 2024, and nicely beneath the 6.07% recorded in November 2023.
Regardless of the easing in charges, lender exercise has created some volatility in product availability. The typical shelf-life of a mortgage deal has shortened barely to 21 days, down from 22 days the earlier month. The typical two-year tracker variable charge additionally dipped, falling to 4.66%, whereas the typical ‘revert to’ or Commonplace Variable Fee (SVR) remained unchanged at 7.27% — nonetheless significantly beneath its peak of 8.19% in late 2023.
Total product numbers declined barely month-on-month, with 6,918 choices now obtainable throughout the market. Nevertheless, the variety of 95% LTV offers elevated to 465, the very best stage since March 2008, when there have been 575 choices obtainable.
Rachel Springall, finance commentator at Moneyfacts, stated: “Debtors with a restricted deposit of simply 5% or 10% will likely be thrilled to see the price of a two-year fastened mortgage dip to a three-year low, earlier than the ‘mini-Funds’ in September 2022.
“The variety of offers obtainable to debtors at 95% loan-to-value has additionally improved, with the pool of offers at its highest depend since 2008. The Authorities has been very vocal that it expects lenders to do extra to spice up UK progress, so the rise in selection and drop in value is a wholesome step in the suitable route.
“Nevertheless, offers at 95% loan-to-value solely symbolize 7% of the residential mortgage market, so there’s extra room for enchancment. Regardless of these strikes, there will likely be debtors who really feel caught as a consequence of an absence of provide in inexpensive housing.
“It might be a aid for debtors to see fastened mortgage charges shifting downwards as soon as extra. The Moneyfacts Common Mortgage Fee dipped beneath 5% and the exercise amongst lenders led to a drop within the common shelf-life of a deal to 21 days. These actions will likely be optimistic information to these refinancing. Certainly, in November 2023, the typical two-year fastened mortgage charge was 6.29%, in comparison with 4.94% now. That could be a distinction of £203 per thirty days in repayments on a £250,000 mortgage over 25 years.
There may even be hundreds of thousands of debtors who secured an affordable five-year fastened charge again in 2020, who’re as a consequence of refinance, so that they do want to organize themselves for greater mortgage repayments. Looking for recommendation to evaluate the most recent offers and to not fall onto the revert charge is important, notably as the typical SVR is 7.27%.
“It’s value noting that lenders are already working arduous to cost down their mortgages to entice new enterprise as a part of their finish of 12 months targets, supported by latest falls in swap charges. As well as, even present debtors can select to lock into a brand new charge round six months earlier than their present deal ends typically.
“The important thing date that’s inflicting debtors to undertake a ‘wait and see’ method is doubtless the upcoming Funds. Up to now, the hearsay mill has spun out a wide range of concepts which may impression debtors from completely different ends of the market. On one hand, the thought to abolish Stamp Responsibility Land Tax and an introduction of a brand new manner of taxing may work in favour of first-time patrons, saving them 1000’s of kilos upfront, serving to them get that essential first step on the property ladder.
“Nevertheless, like a double-edged sword, creating a brand new property tax that places the burden on sellers may result in householders refusing to maneuver, hitting provide. Provide may worsen if CGT exemptions on main residences is eliminated and if the yearly tax levy dubbed the ‘mansion tax’ turns into a actuality. It’s important debtors search recommendation earlier than they make any fast choices and never really feel rushed due to the Funds hearsay mill.”
| Mortgage market evaluation | ||||||
| Nov-23 | Nov-24 | Might-25 | Oct-25 | Nov-25 | ||
| Fastened and variable charge merchandise | Complete product depend – all LTVs | 5,678 | 6,402 | 6,993 | 6,998 | 6,918 |
| Product depend – 95% LTV | 254 | 358 | 462 | 453 | 465 | |
| Product depend – 90% LTV | 709 | 748 | 876 | 909 | 897 | |
| Product depend – 60% LTV | 619 | 758 | 786 | 790 | 787 | |
| All merchandise | Shelf-life (days) | 20 | 17 | 19 | 22 | 21 |
| All LTVs | Common two-year fastened charge | 6.29% | 5.39% | 5.18% | 4.98% | 4.94% |
| Common five-year fastened charge | 5.86% | 5.09% | 5.10% | 5.02% | 5.01% | |
| 95% LTV | Common two-year fastened charge | 6.55% | 5.83% | 5.63% | 5.46% | 5.41% |
| Common five-year fastened charge | 5.93% | 5.40% | 5.58% | 5.44% | 5.41% | |
| 90% LTV | Common two-year fastened charge | 6.25% | 5.70% | 5.42% | 5.27% | 5.24% |
| Common five-year fastened charge | 5.91% | 5.24% | 5.24% | 5.18% | 5.16% | |
| 60% LTV | Common two-year fastened charge | 5.94% | 4.86% | 4.65% | 4.52% | 4.43% |
| Common five-year fastened charge | 5.47% | 4.66% | 4.58% | 4.68% | 4.67% | |
| All LTVs | Commonplace Variable Fee (SVR) | 8.19% | 7.95% | 7.58% | 7.27% | 7.27% |
| All LTVs | Common two-year tracker charge | 6.15% | 5.71% | 5.16% | 4.67% | 4.66% |
| Information proven is as on the first obtainable day of the month, until said in any other case. | ||||||
| Supply: Moneyfacts Treasury Experiences | ||||||
| Moneyfacts Common Mortgage Fee | |||||
| Nov-23 | Nov-24 | Might-25 | Oct-25 | Nov-25 | |
| Moneyfacts Common
Mortgage Fee |
6.07% | 5.31% | 5.17% | 5.02% | 4.99% |
| Calculated from the entire of all on-sale, core market, fastened and variable tracker mortgages. Commonplace exclusions apply: Self-build solely, shared possession solely, new construct solely, shared fairness solely, commonplace variable charges and opposed credit score | |||||
| Supply: Moneyfacts Common Mortgage Fee. | |||||
