Fixed Mortgage Rates Fall for Second Month With Two-Year Average at 5.52 Percent

Fixed mortgage rates in the UK fell for a second consecutive month in June, with the average two-year fix dropping 0.16 percentage points to 5.52 percent and the average five-year fix falling 0.11 points to the same level, according to Moneyfacts data reported by The Independent.

Both rates marked the lowest point since the start of March. The declines represented the fastest monthly reductions since October 2024.

Rates had risen sharply earlier in the year. The average two-year residential fix stood at 4.84 percent at the end of February before climbing to 5.9 percent by early April. By late April, Barclays reintroduced the first sub-4 percent mortgage deal after such offers had been withdrawn across the market.

The average rate for new mortgages fell to 5.47 percent in June, compared with 4.9 percent in March. The total number of mortgage deals available reached 7,177 in June, more than 300 fewer than in March, though the figure was higher than in May. Deals remained on the market for an average of 14 days.

46 percent and the five-year fix at 5.48 percent. Rachel Springall, finance expert at Moneyfacts, said lenders responded to falling swap rates in June and noted that two-year fixes had been more expensive than five-year fixes during the period of peak uncertainty earlier in the year. She added that renewed escalation in geopolitical tensions could slow or reverse the cuts.

Nathan Emerson, CEO at Propertymark, said any fall in rates should help buyers and sellers but pointed to upcoming inflation figures and a Bank of England base-rate decision at the end of the month as factors that could affect lender sentiment. uk, said borrowers should lock in rates sooner rather than later because geopolitical developments can shift pricing quickly.