The UK mortgage market has turned a corner—and there’s good news for buyers. According to the latest data from Moneyfacts, average mortgage rates are at their lowest in nearly three years, while the number of available mortgage products is at its highest since 2007. For first-time buyers and landlords alike, this could be the window of opportunity you’ve been waiting for.
At Christopher Anthony Property Experts, we know how closely mortgage conditions can affect the decision to buy, sell, or invest. So let’s break down what these changes mean—and how you can make the most of them.
Average Mortgage Rates Are Falling
As of July 2025, average fixed-rate mortgage rates continue to fall:
Two-year fixed: 5.09% (down from 5.95% in July 2024)
Five-year fixed: 5.08% (down from 5.53% in July 2024)
These rates are now at their lowest since 2022, offering more affordable monthly payments compared to the recent high-interest period that followed the 2022 mini-Budget crisis.
Why this matters:
Lower mortgage rates mean more borrowing power and better affordability, especially crucial for first-time buyers looking to step onto the property ladder and landlords seeking to expand their portfolio while maintaining healthy margins.
More Mortgage Products to Choose From
There are now 6,908 mortgage products available—more than this time last year and the most since 2007 (excluding a small peak in May 2025). This surge in choice means:
- More flexibility in terms of repayment periods and loan types
- Better opportunities to find deals that match your circumstances
- Competitive offers from lenders looking to secure business
This rise in availability reflects renewed stability in the mortgage market, a stark contrast to the limited choice and sudden withdrawals seen in 2023.
Stress Tests Are Being Relaxed
Lenders are also easing their stress testing criteria, previously a hurdle for many first-time buyers. This means it’s becoming easier to qualify for a mortgage, especially for those with strong incomes but limited savings or a smaller deposit.
And while there’s still no update on changes to loan-to-income (LTI) rules, it’s clear lenders are trying to make homeownership more accessible again.
First-Time Buyers and Landlords: Take Advantage Now
The recent drop in mortgage rates, coupled with rising product availability, presents a real opportunity for:
First-time buyers – Secure a deal with lower monthly payments and more choice
Landlords – Refinance or expand portfolios while borrowing conditions are favourable
Remortgages – Switch from high-interest deals locked in during 2022–2023
With uncertainty around how long these rates will last, acting now could help you lock in a better deal and avoid future disappointment.
Ready to Buy or Invest?
At Christopher Anthony Property Experts, we’re here to help you navigate the changing market and make smart, confident property decisions. Whether you’re a first-time buyer or seasoned landlord, now is the time to explore your options.
Use our free instant valuation tool to see how much your current home or potential investment is worth.
