Mortgage charges: Increase for owners as common UK mortgage price hits ‘turning level’

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Your help makes all of the distinction. Learn extra The typical two-year fixed-rate mortgage has dipped under 5 per cent for the primary time since earlier than Liz Truss’s mini-budget in September 2022, in response to monetary info web site Moneyfacts.

On Wednesday, the typical two-year mounted home-owner mortgage price was recorded at 4.99 per cent, down from 5.00 per cent the earlier working day.

This marks the primary time the speed has been under 5 per cent since September 29, 2022, when it stood at 4.87 per cent.

Adam French, head of reports at Moneyfactscompare.co.uk, known as the transfer "is a symbolic turning level".

Mr French continued: “Whereas the price of borrowing continues to be effectively above the rock-bottom charges of the years instantly previous that fiscal occasion, this milestone exhibits lenders are competing extra aggressively for enterprise.

“Nonetheless, whereas mortgage charges have adopted the temper music set by successive cuts to the Financial institution of England base price, owners and first-time consumers might have to attend longer for extra substantial cuts.

Inflation is forecast to spike at 4 per cent within the autumn and never return to its 2 per cent goal till 2027 or past, which is more likely to imply the bottom price will maintain round its present degree for longer.”

<img src="https://static.independent.co.uk/2025/08/13/11/dae365fe1925febb525e6ed3e31d4a52Y29udGVudHNlYXJjaGFwaSwxNzU1MTY0Njkz-2.38488390.jpg" srcset="https://static.independent.co.uk/2025/08/13/11/dae365fe1925febb525e6ed3e31d4a52Y29udGVudHNlYXJjaGFwaSwxNzU1MTY0Njkz-2.38488390.jpg?quality=75&width=320&auto=webp 320w, https://static.independent.co.uk/2025/08/13/11/dae365fe1925febb525e6ed3e31d4a52Y29udGVudHNlYXJjaGFwaSwxNzU1MTY0Njkz-2.38488390.jpg?quality=75&width=640&auto=webp 640w" loading="lazy" alt="The average two-year fixed-rate mortgage has dipped below 5 per cent for the first time since before former prime minister Liz Truss’s mini-budget in September 2022, Moneyfacts said" class="sc-1mc30lb-0 ggpMaE"/> The typical two-year fixed-rate mortgage has dipped under 5 per cent for the primary time since earlier than former prime minister Liz Truss’s mini-budget in September 2022, Moneyfacts mentioned (Joe Giddens/PA) Ms Truss’s chancellor, Kwasi Kwarteng, introduced a spending evaluation in 2022, which included £45bn in unfunded tax cuts and prompted turmoil within the UK monetary markets.

Mortgage charges surged after the September 2022 assertion, delivered as a part of a “progress plan”.

On 20 October 2022, the typical two-year fixed-rate mortgage hit a peak of 6.65 per cent, amid the market volatility.

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In response to UK Finance, about 900,000 fixed-rate mortgage offers are on account of expire within the second half of 2025, with 1.6 million mounted offers having ended or are on account of finish throughout the entire of the 12 months.

Latest Financial institution of England base price cuts may assist to ease value pressures on some debtors, with final week’s discount within the base price taking it from 4.25 per cent to 4 per cent.