Average mortgage rates in the UK have dipped again in June, though the declines are smaller than last month’s drops, according to the latest data from Moneyfacts. Meanwhile, product choice has decreased slightly, and the shelf-life of mortgage deals has shortened. In this article, we will run through the data and offer some insights.
Key UK Mortgage Rates Changes in June 2025
Moneyfacts reports that:
– The average two-year fixed mortgage rate fell by 0.06% to 5.12%.
– The average five-year fixed rate saw a marginal drop of 0.01%, now at 5.09%.
This marks the lowest point for the five-year fixed rate since November 2024 (5.09%) and the lowest two-year fixed rate since September 2022 (4.24%).
Compared to June 2023, the five-year fixed rate is 0.41% lower (down from 5.50%), while the two-year fixed rate has seen a more significant drop of 0.81% (falling from 5.93%).
Narrowing Gap Between Two- and Five-Year Rates
The difference between the average two- and five-year fixed rates is now just 0.03%, the smallest gap since October 2022 when rates first inverted.
Louis Mason, Marketing and Communications Director at Oportfolio Mortgages, commented:
“While the slight dip in rates is welcome, borrowers should be aware that the market remains volatile. The narrowing gap between two- and five-year fixed rates suggests lenders are anticipating further economic shifts. For those considering a remortgage or purchasing a new home, securing expert advice is crucial to navigating these fluctuations.”
Mortgage Product Availability and Shelf-Life Decline
– Product choice fell slightly month-on-month to 6,843 options, though this is still higher than June 2023’s 6,629.
– The average shelf-life of a mortgage product dropped to 17 days (from 19 days in May), the shortest duration since March 2025 (16 days).
Tracker and SVR Rates Also Decline
– The average two-year tracker variable mortgage rate fell to 4.91%, the first time it has dipped below 5% since March 2023.
– The standard variable rate (SVR) decreased to 7.48%, down from the peak of 8.19% in November and December 2023.
What Does This Mean for Borrowers?
With mortgage rates falling but at a slower pace, and product availability shrinking slightly, borrowers should act quickly to secure competitive deals before they are withdrawn.
Thinking About a New Mortgage or Remortgage?
Contact Oportfolio Mortgages today for expert advice tailored to your situation. With market conditions shifting, locking in the right deal at the right time could save you thousands.
