Editor's note: This brief was summarised by The Property AI Newsroom from a report by Property Industry Eye. Read the original article for full details.

Fixed Mortgage Rates See Fastest Drop in Nearly Two Years

Fixed mortgage rates in the UK recorded their largest monthly reductions since October 2024, according to the latest Moneyfacts UK Mortgage Trends Treasury Report. Both the average two-year and five-year fixed mortgage rates fell to 5.52% last month, reaching their lowest levels since the start of March 2026.

The report states that the average two-year fixed rate dropped by 0.16 percentage points, while the average five-year fixed rate decreased by 0.11 percentage points. The average rate for new mortgages also fell by 0.12 percentage points to 5.47%, matching its biggest monthly decline since March 2025.

Borrowers with a 5% deposit saw the average five-year fixed rate at 95% loan-to-value fall below 6% for the first time since March 2026. Mortgage product availability increased for the third consecutive month, with the number of products rising by 45 to a total of 7,177. However, there were still 307 fewer deals available than at the start of March, reflecting ongoing recovery from earlier product withdrawals.

The average shelf-life of a mortgage product decreased from 15 days to 14 days in June, as lenders continued to reprice deals in response to movements in swap rates.

These changes in mortgage rates and product availability are relevant for UK letting agents and inventory clerks, as they may influence tenant demand, landlord decisions, and overall market activity.