2025 mortgage rates: What's happening and refinancing tips

If you’ve been eyeing mortgage deals lately – whether you’re a first-time buyer, a remortgager, or someone who just likes spreadsheets a little too much – you’ve probably noticed something: mortgage rates have been doing a bit of a shuffle recently.

It’s fair to say the market has been interesting lately. Between trade spats across the pond, mutterings from the Bank of England (BoE), and lenders playing rate limbo, it’s a full-time job trying to keep up. Luckily, that's where we come in. Here’s what’s happening with UK mortgage rates today, and what it means for your wallet.

What’s happening to mortgage rates?

Mortgage rates have finally started to shift in the right direction – down. After a brutal 2023 and a wobbly 2024, several big lenders, including Barclays and Coventry Building Society, have trimmed their fixed-rate mortgage deals to below 4%. The average 2-year fix on the UK mortgage market now sits at 4.84%.

Source: Rightmove, correct as at 10 April 2025.

That might not sound like a bargain price, but compared to the eye-watering 6%+ deals of last year, it’s a breath of fresh air. A lot of this is down to nerves in the global economy, particularly thanks to the latest round of tariff chaos from the US - which have the markets betting on interest rate cuts from the Bank of England sooner rather than later.

The Bank’s base rate is still sitting at 4.5%, but all eyes are on May’s monetary Policy Committee (MPC) meeting, with a rate cut now looking more likely than not. Lenders appear to be jumping the gun and slashing their rates early, hoping to tempt borrowers off the sidelines. That’s good news if you’re remortgaging or house-hunting – but don’t hang about. These deals can disappear fast, and with the economic outlook still foggy at best, getting your foot in the door with your lender could save you a bit of cash (and stress) later.

The UK economy is already stuttering under the weight of higher taxes on businesses and consumers, and any further strain on household finances could have an even further dampening effect on output. There’s every possibility that the BoE may look to lessen the recession risk with another rate cut in May, provided it views any price rises resulting from the tariff shock as temporary. This could bode well for mortgage rates – though there are no certainties at this stage.

Alice HainePersonal Finance Analyst, Bestinvest

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