Fixed mortgage rates have fallen at their fastest pace since October 2024, Moneyfacts UK Mortgage Trends Treasury Report data reveals.
Average two- and five-year fixed rates fell by 0.16% and 0.11% respectively, with both reaching 5.52% – their lowest points since the start of March.
The Moneyfacts Average New Mortgage Rate fell by 0.12%, to 5.47%, its biggest monthly fall since March 2025 (0.12%). It was last below 5% in March 2026 (4.90%).
Mortgage availability increased for a third consecutive month, with product choice rising by 45 deals to 7,177 options, as the market continues its recovery from the fall-out of the conflict in the Middle East. However, there are still 307 fewer deals compared to the start of March 2026.
Rachel Springall, finance expert at Moneyfacts, said: “Borrowers will breathe a sigh of relief to see fixed mortgages falling at their fastest pace for almost two years, combined with a calmer period of product churn and an uplift in choice.”
Although Springall warned the positive trajectory could be thrown off course by renewed escalation of the conflict, the increase in mortgage choices added to the positive outlook.
“Mortgage product choice recovery from the steep drops seen back in April may have slowed, with an uplift of 45 options since the beginning of June, but it is the combined total of 976 deals returning since the start of May that calls for celebration,” she explained.
“This equates to around three-quarters (76%) of mortgage deals coming back of the 1,283 products withdrawn in April. Stability appeared to be a recurring theme during June, with the average shelf-life of a deal recorded at 14 days, from 15 days the month before.
“This is a much more acceptable timeframe compared to the record low of eight days recorded at the start of April. Borrowers with just a small deposit or equity of 10% may be pleased to know that further recovery of product choice at 90% LTV has surpassed 900 options for the first time since the start of March 2026. However, there is still room for improvement across the higher LTV terms, particularly for borrowers who can only amass a 5% deposit; these deals make up just 8% of the core market (5,848).”
NAEA Propertymark president Ian Harris and CEO Nathan Emerson welcomed the data but warned political uncertainty is still casting shadows over the market.
In a joint statement, they said: “Any fall in mortgage rates should help boost flexibility for both buyers and sellers, and it could perhaps be a sign that the UK housing market is overcoming what may be the worst of the mortgage rate rises witnessed in recent years.
“However, with inflation figures due next week, all eyes will likely turn to the Bank of England and its next base rate decision at the end of the month. There has been speculation that we may see a rate rise over the coming months, which could shift sentiment among lenders as the year progresses.
“Also, the appointment of a new prime minister could create uncertainty among buyers and sellers due to potential changes in housing policy going forward.
“So, while today’s news is welcome, it is important to consider the wider economic picture and the many different scenarios that could play out over the coming weeks and months.”
