Editor's note: This brief was summarised by The Property AI Newsroom from a report by Mortgage Solutions. Read the original article for full details.
Mortgage Rates Fall Sharply as Product Choice Remains High
Average UK mortgage rates have experienced their sharpest decline in almost two years, according to the latest Moneyfacts UK Mortgage Trends Treasury report. The number of mortgage products available has remained high and stable, offering a wide range of options for borrowers.
The report states that the average two- and five-year fixed mortgage rates both fell to 5.52%, with the two-year rate dropping by 0.16% and the five-year by 0.11%. These are the lowest average rates since March 2026 and represent the largest reductions since October 2024. The average new mortgage rate also fell by 0.12% to 5.47%, marking the biggest monthly reduction since March 2025.
For borrowers with a 5% deposit (95% loan to value), the average five-year fixed rate dropped below 6% for the first time since March, reaching 5.92%. The average two-year fixed rate at this tier also decreased from 6.23% to 6.13%. At 60% loan to value, the average two-year fixed rate fell below 5%, from 5.17% in June to 4.97% in July, while the five-year fixed rate declined from 5.29% to 5.23%.
The typical standard variable rate (SVR) remained unchanged at 7.13%, and the average two-year tracker rate increased slightly from 4.48% to 4.49%.
Mortgage product choice increased from 7,132 in June to 7,177 in July, surpassing the product count at the start of the year. However, the number of 95% LTV products fell from 466 to 450. At 90% LTV, product availability rose from 891 to 913, and at 60% LTV, it increased from 810 to 835. The average shelf life of a mortgage product was 14 days in July, one day shorter than in June.
These changes in mortgage rates and product availability may be relevant for letting agents and inventory clerks monitoring market trends and affordability for tenants and landlords.
Source: Mortgage Solutions