UK Mortgage Market Snapshot – October 2025

The UK mortgage market continues to show signs of movement, with small but notable rate adjustments across major lenders. For homeowners and investors, staying informed is more important than ever to avoid being caught off guard by shifting rates.

🔎 What’s Happening in the Market?

• 2-year fixed rates have edged up slightly, now averaging 5.01%.

• 5-year fixed rates are averaging 5.05%, reflecting ongoing lender caution.

• Major banks such as Nationwide and Halifax have adjusted their product ranges in response to swap rate volatility.

The Bank of England base rate remains steady at 5.25%, but analysts are predicting the possibility of a cut in early 2026 if inflation continues to cool. This means that while current deals are relatively stable, the outlook for the coming year could bring opportunities for those ready to act.

💡 What This Means for You

• If your mortgage deal is ending soon, you may face your lender’s Standard Variable Rate (SVR) — often significantly higher than fixed alternatives.

• Many lenders allow you to secure a new deal up to six months in advance, protecting you from future increases while keeping flexibility.

👉 Pro Tip: If your deal ends in the next 6 months, act early to lock in your next rate and avoid reverting to an SVR.

🔹 How Mortgage Circle Can Help

At Mortgage Circle, we monitor rate changes daily and use our market knowledge to help you make the most informed decision.

✔️ Early rate-lock options tailored to your circumstances
✔️ Access to exclusive broker-only products not available on the high street
✔️ Guidance on whether to fix short-term, long-term, or consider a tracker
✔️ Quick and secure application handling through our client portal

📞 Call us: 0121 572 0675 / 0800 644 0190
🌐 Website: www.mortgagecircle.co.uk

⚠️ Compliance & Risk Notice

Your property may be repossessed if you do not keep up repayments on your mortgage.
Business lending and most commercial mortgages are not regulated by the FCA.

This newsletter is for general information purposes only and does not constitute personal advice. Please consult an adviser for recommendations suited to your circumstances.

Mortgage Circle is authorised and regulated by the FCA (FCA No. 797652).

Warm regards,
The Mortgage Circle Team