Mortgage rates in the UK have finally started to settle — or at least, they’re not jumping around like they were this time last year. That’s the good news. The less-good news? While we’re out of panic mode, we’re definitely not in calm waters either. Lenders are still nudging rates up and down in small movements, and it’s not clear yet which way things will go for the rest of 2025.
🏡 Mortgage Market Snapshot – 15th September 2025 🏡
| Category | What’s Happening |
|---|---|
| Fixed rates starting from | ~3.82% (for lower LTV, clean credit, typically has lender fee’s) |
| Average 2-Year Fixed Rate | ~4.85% – 5.10% (depending on LTV and borrower profile) |
| Average 5-Year Fixed Rate | ~4.95% – 5.30% (more stable but varies by lender) |
| BoE Base Rate | 4.00% (cut in August 2025) |
| Trend Direction | Mostly flat — small movements up and down |
| Recent Lender Moves | Barclays, Nationwide, Virgin Money raised some rates by 0.10%–0.20% |
| Product Availability | Back to pre-2022 levels; wide choice now available |
| Best For Fixing? | Buyers wanting certainty may benefit from fixing now if rate suits their budget |
| Risk Areas | Higher LTV, short-term fixes, and rates sensitive to swap rate shifts |
| Market Outlook | Expect flat-to-slight movements until inflation falls more consistently |
| Top Tip | Start exploring your options early, especially if your fix is ending soon |
*Remember this is a reflective snapshot of the date is was researched (15th September) and deals and rates change all the time and are also subject to status.
Over the last few weeks, the general pattern has been what you might call a “slow-motion seesaw”. Some lenders have quietly increased rates on selected fixed mortgage deals, while others have trimmed theirs in an effort to stay competitive. On average, rates are hovering in a fairly narrow range. Most two- and five-year fixed deals are sitting between 4.8% and 5.3% for standard loan-to-value brackets. That’s a big change from the huge rate swings we saw in 2022 and early 2023, and for many borrowers, it’s a welcome breather.
So what’s keeping things steady — and why haven’t rates dropped further, especially since the Bank of England cut its base rate to 4.00% in August?
The answer lies in how mortgage rates are priced. While the base rate plays a part, lenders also look at what are called “swap rates” — essentially, financial market predictions about where interest rates are heading. And those predictions have been wobbling. Inflation hasn’t been falling as quickly as expected, which means markets are no longer quite as confident that we’ll see more base rate cuts soon. That makes lenders cautious about reducing their rates too quickly.
In fact, some of the UK’s biggest lenders — including Barclays, Nationwide and Virgin Money — increased their fixed-rate products by up to 0.20% in early September. These aren’t huge hikes, but they’re a sign that lenders are still trying to manage risk and protect their margins.
Despite this, product availability has improved massively. According to Moneyfacts, the number of residential mortgage products is now back to pre-2022 levels. So for borrowers — especially those coming off low fixed-rate deals — there’s more choice on the table than there has been in a long time.
That’s good news if you’re looking to remortgage. But keep in mind, even with rates levelling off, many borrowers are still facing big jumps in monthly payments. If your current deal is under 2%, moving to a new fixed rate of 5% will feel like a major shift. That’s why it pays to start exploring your options early, especially if your fixed term is ending soon.
So, should you fix now or wait?
There’s no simple answer. If you want certainty in your repayments and you’re happy with the current rates, locking in might be the right move. On the other hand, if you think rates might drop again next year, a tracker or a shorter-term fix could be worth considering — just be aware of the risks.
Looking ahead, most experts don’t expect big changes any time soon. Until inflation comes down further and the economic outlook improves, mortgage rates are likely to keep bouncing around within a narrow band. The upcoming government budget in November could also bring tax or policy shifts that affect the property market — another reason lenders might be cautious in the short term.
In summary: mortgage rates have steadied, but that doesn’t mean they’re stable forever. Think of it more like a pause than a permanent shift. The worst of the rate volatility seems to be behind us for now, but we’re not out of the woods just yet.
If you’re feeling unsure about what to do next, a chat with a mortgage broker can help make things clearer. At Quick Mortgages, we’re fee-free and here to help you make sense of your options — no pressure, no jargon, just honest advice.
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Disclaimer:
This article is for general guidance purposes only and does not constitute legal, financial, or professional advice. Mortgage products and their terms can vary, and it is important to seek advice from a qualified, regulated professional who can assess your individual circumstances. Please ensure you consider your unique needs before making any financial decisions.
While every effort is made to ensure that the information provided on this blog is accurate and up-to-date, we do not guarantee its completeness or accuracy. The mortgage market can change rapidly, and the information on this blog may become outdated. We recommend verifying any information before acting on it and seeking tailored advice.
THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME OR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT.
