A fresh wave of rate cuts is sweeping through the mortgage market, with lenders trimming prices and widening their product ranges. The shift offers borrowers improved options at a time when demand is beginning to pick up and competition among lenders is becoming fiercer.
The latest Moneyfacts UK Mortgage Trends Treasury Report data reveals that the average two- and five-year fixed mortgage rates fell month-on-month by notable margins, now both at their lowest levels since the start of September 2022, before the ‘mini-Budget’.
Overall product choice grew to surpass 7,000 options and the average shelf-life of a deal fell to 18 days. There has been a notable drive by lenders to expand choice on low deposit deals during 2025.
The figures show that product choice increased month-on-month to 7,054 options, bringing availability close to a record high. Over the past year, lenders have focused heavily on supporting borrowers who need higher loan-to-value products. Deals at 95% LTV rose by 111 year-on-year, while those at 90% LTV increased by 155; no other LTV tier saw growth of more than 100 products over the same period.
Average mortgage rates continued to edge downwards. The typical two-year fixed rate fell by 0.08 percentage points to 4.86%, while the five-year fixed dropped by 0.10 points to 4.91%, its lowest level since September 2022 and the first time it has dipped below 5% since May 2023. The Moneyfacts Average Mortgage Rate also declined, falling to 4.91% from 4.99% month-on-month and down from 5.44% a year earlier.
Strong market activity shortened the average shelf-life of a mortgage product to just 18 days. Meanwhile, the average two-year tracker rate held steady at 4.66% month-on-month but has dropped by 0.80 percentage points over the year from 5.46%. The average revert-to or Standard Variable Rate stayed at 7.27%, though this is 0.58 points lower than the 7.85% recorded a year ago. By comparison, the highest SVR level reached was 8.19% in November and December 2023.
Rachel Springall, finance commentator at Moneyfacts, said: “Mortgage rates continue on the downward trend and November was particularly fruitful for fixed rate cuts. The re-pricing by lenders led to the average five-year fixed rate dropping below 5% for the first time in over two years and sits at its lowest point since before the ‘mini-Budget’ in September 2022, alongside its two-year counterpart. The average two-year fixed rate noted its biggest monthly fall since August this year, with the five-year noting its largest monthly fall in over six months (March 2025). The activity during November led to a drop in the average shelf-life of a mortgage to just 18 days, and product choice felt a positive rise to breach 7,000 deals.
“Year-on-year the mortgage market has seen an optimistic shift in the availability of products aimed at borrowers with a small deposit or equity, with almost 300 products added to the roster at 90% and 95% loan-to-value. The volume of deals at these tiers now rests at their highest counts since March 2008. The Government has been very vocal that it wants lenders to do more to support buyers to boost UK growth, so any improvement in high loan-to-value deals should be celebrated as it gives borrowers more choice as competition ramps up.
“The improvement in cost and product availability of mortgages paints a positive picture for borrowers as we edge towards the New Year. This year has not been without a few ups and downs for rate moves and product availability, but all signs are looking encouraging for the mortgage market to thrive moving into 2026. The Budget has been and gone, expectations for another base rate cut are high, and muted house price growth as a combination can lead to optimistic sentiment among buyers. However, those who locked into a cheap fixed deal five years ago will need to accept that they will have to cover higher repayments, with the Bank of England expecting 3.9 million households will refinance onto higher rates over the next three years. Seeking advice in the first instance before buying or remortgaging will be essential to help borrowers navigate the mortgage maze.”
| Mortgage market analysis | ||||||
| Dec-23 | Dec-24 | Jun-25 | Nov-25 | Dec-25 | ||
| Fixed and variable rate products | Total product count – all LTVs | 5,694 | 6,486 | 6,843 | 6,918 | 7,054 |
| Product count – 95% LTV | 253 | 365 | 453 | 465 | 476 | |
| Product count – 90% LTV | 718 | 762 | 873 | 897 | 917 | |
| Product count – 60% LTV | 623 | 778 | 793 | 787 | 805 | |
| All products | Shelf-life (days) | 17 | 21 | 17 | 21 | 18 |
| All LTVs | Average two-year fixed rate | 6.04% | 5.52% | 5.12% | 4.94% | 4.86% |
| Average five-year fixed rate | 5.65% | 5.28% | 5.09% | 5.01% | 4.91% | |
| 95% LTV | Average two-year fixed rate | 6.34% | 5.92% | 5.57% | 5.41% | 5.33% |
| Average five-year fixed rate | 5.73% | 5.53% | 5.52% | 5.41% | 5.33% | |
| 90% LTV | Average two-year fixed rate | 6.01% | 5.80% | 5.38% | 5.24% | 5.13% |
| Average five-year fixed rate | 5.71% | 5.40% | 5.21% | 5.16% | 5.07% | |
| 60% LTV | Average two-year fixed rate | 5.59% | 5.04% | 4.58% | 4.43% | 4.32% |
| Average five-year fixed rate | 5.20% | 4.86% | 4.65% | 4.67% | 4.57% | |
| All LTVs | Standard Variable Rate (SVR) | 8.19% | 7.85% | 7.48% | 7.27% | 7.27% |
| All LTVs | Average two-year tracker rate | 6.16% | 5.46% | 4.91% | 4.66% | 4.66% |
| Data shown is as at the first available day of the month, unless stated otherwise. | ||||||
| Source: Moneyfacts Treasury Reports | ||||||
| Moneyfacts Average Mortgage Rate | |||||
| Dec-23 | Dec-24 | Jun-25 | Nov-25 | Dec-25 | |
| Moneyfacts Average
Mortgage Rate |
5.88% | 5.44% | 5.12% | 4.99% | 4.91% |
| Calculated from the total of all on-sale, core market, fixed and variable tracker mortgages. Standard exclusions apply: Self-build only, shared ownership only, new build only, shared equity only, standard variable rates and adverse credit | |||||
| Source: Moneyfacts Average Mortgage Rate. | |||||