Mon, 13 Oct 2025

Mon, 13 Oct 2025 Mortgage rates creep back up as lenders show caution

Average mortgage rates have increased month-on-month for the first time since February, says Moneyfacts.

* Average mortgage rates have risen by 0.02 percentage points, ending a streak of monthly drops since February.
* The average rate for a two-year fixed rate mortgage is now 4.98%, and for a five-year fixed rate mortgage it's 5.02%.
* More than eight in 10 mortgage customers have fixed-rate deals, which won't change until the deal expires after two or five years.
* Hundreds of thousands of potential first-time buyers are hoping to get on the property ladder with low mortgage rates.
* Analysts say that lenders are being cautious ahead of the winter and the upcoming Budget, which may lead to further base rate cuts by the Bank of England appearing unlikely.
* Borrowers are advised to seek independent advice and not be influenced by the Budget rumor mill.
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