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

Fixed Mortgage Rates See Largest Monthly Drop Since October 2024

Fixed mortgage rates in the UK have experienced their biggest monthly reduction since October 2024, according to new data from Moneyfacts. The average two- and five-year fixed rates both fell to 5.52%, with the two-year rate dropping by 0.16% and the five-year by 0.11%.

The latest figures show these rates are now at their lowest since the start of March 2026. The average new mortgage rate also fell by 0.12% to 5.47%, marking its largest monthly fall since March 2025. The average five-year fixed rate at 95% loan-to-value (LTV) has dipped below 6% for the first time since March this year.

Mortgage product availability has increased for a third consecutive month, with 45 more deals added, bringing the total to 7,177 options. However, there are still 307 fewer deals compared to the start of March 2026. The average shelf-life of a mortgage deal is now 14 days, one day less than the previous month.

Moneyfacts reports that the incentive to remortgage remains strong, as fixed rates are much lower than the average standard variable rate (SVR), which stands at 7.13%. This SVR is down by 0.29% year-on-year from 7.42%.

For letting agents and inventory clerks, these changes in mortgage rates and product availability may influence landlord decisions and the wider rental market. The continued recovery in mortgage product choice and the reduction in rates could impact buy-to-let activity and remortgaging trends.