If your two-year fixed mortgage is about to expire, you might potentially be in for some positive news. Back in early 2023, many borrowers locked into deals with interest rates as high as 6.86%, as the Bank of England battled stubborn inflation with relentless interest rate hikes1. Now, however, the tables have turned—and you could be paying much less when you remortgage.
The latest figures2 show that the Bank of England cut its base rate to 4.5% in February 2025, marking a sharp drop from its peak of 5.25% last year. Lenders have responded swiftly, with big names like Santander and Halifax slashing their mortgage rates. In fact, Santander has just launched a 3.99% fixed-rate mortgage, the first sub-4% deal seen in months2.
What’s Happening to Mortgage Rates?
Mortgage rates are significantly lower than they were during some of the highly volatile periods of the last couple of years, but have bobbed up and down, as markets have been hesitant in how quickly they expect rates to come down, according to industry analysts.3
According to Moneyfacts4, the average two-year fixed rate peaked at 6.86% in 2023—one of the highest levels in more than a decade. But as of February 2025, some of the best deals are now hovering between 4.13% and 4.23%, though this is still higher than the 2.25% average seen in 2021 when, interest rates were at historic lows5.
Why Mortgage Advice Matters More Than Ever
Securing a mortgage deal isn’t just about finding the lowest interest rate – it’s about ensuring the mortgage works for your personal circumstances now and in the future. We’re here to help find you the deals that match your needs, from a comprehensive panel of lenders across the marketplace.
With such a wide range of lenders, and deals that fluctuate regularly, navigating the mortgage market alone can be overwhelming, so it’s worth getting in touch so we can help you on the journey to find a deal that most closely fits your circumstances, and long-term goals.
Protecting your Lifestyle
The advice doesn’t just stop there. We’re also passionate about keeping you and your family protected. Afterall, a mortgage is one of the biggest financial commitments you’ll make, but what happens if something unexpected occurs? A home without protection is like buying a Ferrari without brakes – it looks great, but if something goes wrong, you’re at serious risk.
We can help you look at the fuller picture, including options for insurance and protection, so you and your family can remain financially secure, despite what life tries to throw your way.
What Should You Do If You’re Remortgaging?
If your current deal expires in the next six months, don’t wait until the last minute. Many lenders allow borrowers to lock in a new rate now, which means you can secure today’s lower rates while keeping an eye on further potential drops.
Consider these steps:
- Compare current rates: The best deals can disappear quickly, so acting fast could save you money. Take a look at our mortgage calculator, or get in touch with us today.
- Two-year or five-year fix? A shorter fix gives flexibility if rates drop further, but a five-year fix locks in stability.
- Speak to a mortgage expert: Professional advice ensures you secure the right mortgage for your financial future.
Final Thought – Act Before It’s Too Late
The mortgage market is shifting rapidly, and while rates have fallen, they may not stay this low forever. If you’re among the millions remortgaging this year, securing a deal now could mean a substantial saving, so don’t get caught out, and speak to us today to see how we can help to find the most suitable deal for your needs.
Your home/property may be repossessed if you do not keep up repayments on your mortgage.
Sources
- The Guardian (2023) Average UK two-year fixed mortgage rate drops below 6% to six-month low. Available at: https://www.theguardian.com/money/2023/dec/08/average-uk-two-year-fixed-mortgage-rate-drops-below-6-per-cent-six-month-low [Accessed 12th Feb 2025]
- The Guardian (2025) Boost for UK borrowers as Santander ‘fires starting gun’ on mortgage price war. Available at: https://www.theguardian.com/money/2025/feb/11/boost-uk-borrowers-santander-fires-starting-gun-mortgage-price-war [Accessed 12th Feb 2025]
- Moneyweek (2025) Will mortgage rates fall this year?. Available at: https://moneyweek.com/personal-finance/mortgages/latest-UK-mortgage-rates [Accessed 12th Feb 2025]
- Moneyfacts (2023) Moneyfacts Year in Review 2023 – Mortgages. Available at: https://www.moneyfactsgroup.co.uk/media-centre/consumer/moneyfacts-year-in-review-2023-mortgages [Accessed 12th Feb 2025]
- This is Money (2025) What next for mortgage rates – and how long should you fix for?. Available at: https://www.thisismoney.co.uk/money/mortgageshome/article-1687576/What-mortgage-rates.html [Accessed 12th Feb 2025]
All the information in this article is correct as of the publish date 27th February 2025. The opinions expressed in this publication are those of the authors. The information provided in this article, including text, graphics and images does not, and is not intended to, substitute advice; instead, all information, content, and materials available in this article are for general informational purposes only. Information in this article may not constitute the most up-to-date legal or other information. Please be aware that by clicking on to any of the above links you are leaving our website. Please note that neither we nor HL Partnership Limited are responsible for the accuracy of the information contained within the linked site(s) accessible from this page.
