Mortgage rates hit a two-year low: now is the time to take advantage

There’s finally some great news for borrowers: mortgage rates have dropped to their lowest levels since September 2022, just before the mini-budget shook the market. After weeks of competitive repricing, lenders are now offering some of the most attractive fixed-rate deals we’ve seen in years — and borrowers are starting to benefit.

Five-year fixed rates have fallen to pre–mini-budget levels, and two-year fixes have followed suit. In fact, the average two-year fixed rate has just seen its biggest monthly drop since August, while five-year fixes have experienced their strongest fall in over six months. With products changing fast — the average shelf life is now just 18 days — acting quickly has never been more important.

Product choice is expanding too. The total number of available mortgage deals has now broken through the 7,000-product mark, giving borrowers more options than at any point in recent years. And if you’re working with a smaller deposit, the news is even better: more than 300 new high-LTV products have been added at 90% and 95% LTV. These are the highest levels of high-LTV availability since 2008, creating real opportunities for first-time buyers and movers who want to stretch their budget further.

With the government encouraging lenders to support buyers and competition heating up across the market, this surge in choice and affordability is a welcome shift — and a strong sign of what’s ahead.

The budget has been and gone – as we look towards the new year, the combination of falling rates, increasing product availability, muted house price growth and expectations of a base rate cut is creating a window of opportunity for borrowers. The market is gaining momentum, and the outlook moving into 2026 is increasingly positive.

But if your fixed rate is ending soon, it’s essential to prepare. Around 3.9 million households are set to refinance onto higher rates over the next three years. Securing the right deal — and doing so early — can make a significant difference to your monthly repayments.

If you’re thinking of buying or remortgaging, now is the perfect time to explore your options. Get in touch and we’ll help you navigate the market, compare the best available deals, and secure a rate that works for you.