Mortgage rates are constantly changing, so it’s important to know what the current mortgage rates are, what affects them, and how to find the best deal.
In this guide, we’ll discuss what you should think about when planning your mortgage renewal and how to be best prepared, especially if you’re a first time buyer.
What are the current mortgage rates?
As of April 2025, the current mortgage rates have changed again and differ across fixed and variable terms. The table below gives an average of the current mortgage rates.
| Term | |
| 2-year fixed | 4.90% |
| 5-year fixed | 4.50% |
| Standard variable | 5.20% |
With the current mortgage rates being ever unpredictable, most people choose to go for a fixed rate over a variable, ensuring there are no shock changes to monthly payments. It’s always best to speak to a Mortgage Advisor, who will advise you on the best option at the time of your application.
What are the average mortgage rates (UK)?
The average mortgage rates in the UK have changed drastically over the past 25 years.
Check out this table from 2000 to 2025 on changes in mortgage rates:
|
Year |
2-Year Fixed |
3-Year Fixed |
5-Year Fixed |
10-Year Fixed |
2-Year Variable |
|
2000 |
6.50% |
6.20% |
6.00% |
6.50% |
6.30% |
|
2001 |
5.80% |
5.60% |
5.50% |
5.90% |
5.70% |
|
2002 |
5.20% |
5.00% |
5.00% |
5.30% |
5.10% |
|
2003 |
4.80% |
4.60% |
4.50% |
4.90% |
4.60% |
|
2004 |
4.50% |
4.30% |
4.30% |
4.60% |
4.20% |
|
2005 |
4.40% |
4.20% |
4.20% |
4.40% |
4.10% |
|
2006 |
4.60% |
4.40% |
4.40% |
4.60% |
4.30% |
|
2007 |
5.00% |
4.80% |
4.80% |
5.00% |
4.70% |
|
2008 |
6.00% |
5.80% |
5.70% |
6.00% |
5.60% |
|
2009 |
4.00% |
3.80% |
3.70% |
4.00% |
3.60% |
|
2010 |
3.50% |
3.30% |
3.30% |
3.60% |
3.20% |
|
2011 |
3.80% |
3.60% |
3.50% |
3.90% |
3.40% |
|
2012 |
3.60% |
3.40% |
3.40% |
3.70% |
3.20% |
|
2013 |
3.50% |
3.30% |
3.30% |
3.60% |
3.10% |
|
2014 |
3.40% |
3.20% |
3.20% |
3.50% |
3.00% |
|
2015 |
3.20% |
3.00% |
3.00% |
3.30% |
2.80% |
|
2016 |
3.10% |
2.90% |
2.80% |
3.20% |
2.60% |
|
2017 |
3.00% |
2.80% |
2.70% |
3.10% |
2.50% |
|
2018 |
2.90% |
2.70% |
2.60% |
3.00% |
2.40% |
|
2019 |
2.80% |
2.60% |
2.50% |
2.90% |
2.30% |
|
2020 |
2.70% |
2.50% |
2.40% |
2.80% |
2.20% |
|
2021 |
2.60% |
2.40% |
2.30% |
2.70% |
2.10% |
|
2022 |
3.50% |
3.30% |
3.20% |
3.60% |
3.10% |
|
2023 |
3.50% |
4.80% |
4.70% |
5.10% |
4.60% |
|
2024 |
4.70% |
4.50% |
4.40% |
4.80% |
4.30% |
|
2025 |
4.90% |
4.09% |
4.50% |
4.46% |
5.20% |
Table data source: Statistica
In 2025, we’re predicting to see a decrease in average mortgage rates across the board. In this next section, we’ll look at what affects current mortgage rates.
What affects the current mortgage rates?
Interest rates are shaped by a variety of interconnected factors, such as the demand for and supply of credit, inflation, central bank policies, economic growth, and global economic conditions. Here’s a more detailed explanation:
-
Supply and Demand for Credit:
-
High Demand, Low Supply:
When the demand for loans and credit is high, or when the supply is limited, interest rates typically increase. -
Low Demand, High Supply:
On the other hand, when credit demand is low or the supply is abundant, interest rates generally decrease.
-
-
Inflation:
-
Rising Inflation:
To tackle rising inflation, central banks often raise interest rates, as higher rates can help slow down the economy and reduce demand. -
Falling Inflation:
Conversely, when inflation is low or during a recession, central banks might lower interest rates to encourage economic activity.
-
-
Central Bank Monetary Policy:
-
Monetary Tools:
Central banks, such as the Bank of England, use tools like the Bank Rate (the interest rate they offer commercial banks) to influence interest rates across the economy. -
Impact on Lending Rates:
Adjustments to the Bank Rate often lead to changes in the rates banks charge for loans, directly affecting borrowing costs for individuals and businesses.
-
-
Economic Growth:
-
Strong Growth:
In times of strong economic growth, central banks may raise interest rates to prevent the economy from overheating and to curb inflation. -
Slow Growth:
During periods of slow growth or recession, central banks may lower rates to stimulate borrowing and investment.
-
-
Global Economic Conditions:
-
International Factors:
Global economic events, such as shifts in international supply or demand, can also influence a country’s interest rates. -
Exchange Rates:
Fluctuations in exchange rates can have an impact too. A weaker currency might drive up inflation, leading to higher interest rates.
-
-
Other Considerations:
-
Credit Risk:
Lenders assess the likelihood of a borrower defaulting on a loan and adjust interest rates accordingly, with riskier borrowers facing higher rates. -
Loan Term:
The duration of a loan also affects the interest rate, with longer-term loans typically carrying higher rates. -
Unemployment:
Low unemployment is often seen as a sign of a healthy economy, but it can lead to wage growth, which may drive inflation and prompt central banks to raise interest rates.
-
What about first time buyers?
If you’re a first time buyer in 2025, getting a mortgage can seem a little daunting, especially with the cost of so many things rising. Now that you have a better understanding of the current mortgage rates, the average mortgage rates and what affects them, it might be time to look at some options.
Luckily, there are a whole host of options out there, that favour first time buyers. Some lenders may accept a lesser deposit, such as £5,000, and some may even accept zero deposit. This all depends on your criteria and credit history, so it’s important to prove to these lenders that you’re making regular monthly payments and even getting yourself on the electoral register. These things will help to improve your credit score and make lenders look favourably on you.
Current Mortgage Rates Summary
In this guide, we have reviewed the current mortgage rates, the average mortgage rates, and what affects them. We have also discussed what first time buyers should look out for when getting their first mortgage.
Should you require any further assistance in your mortgage application, please contact us to arrange a consultation with our expert team of brokers.
As a specialised mortgage broker, we have access to hundreds of lenders, some who specialise in mortgages for those with bad credit but good income. We offer a free consultation with access to a free Equifax Credit Report. With this report, we can analyse your current situation and look at how to move forward.
As with any big financial decision, it is highly recommended that independent financial advice is sought ahead of committing to a specific option, to ensure that all terms are fully understood, the option is the most favourable for the applicant and that the repayments can be made comfortably.
In addition, it is important to note that with any secured lending, the ultimate consequence of defaulting on the mortgage could mean that the property is repossessed by the lender.
Call us today on 0330 90 60 30 or feel free to contact us. One of our advisors will be happy to talk through all of your options with you.
