Mortgage rates in the UK are trending once again. Google Trends shows a sharp rise in searches for “mortgage rates” in the past 24 hours. This reflects growing interest from homebuyers and homeowners alike.
Why Are Mortgage Rates in the News?
Firstly, inflation is falling. In March 2025, UK inflation dropped to 2.6%, down from 2.8% in February. According to AP News, this drop is driven mainly by lower fuel prices.
Secondly, the Bank of England has kept the base rate steady at 4.5%. This follows a previous cut earlier this year. While interest rates are not plummeting, they’re no longer climbing — giving buyers more breathing room.
Current Mortgage Rates in the UK
As of mid-April 2025, average mortgage rates are:
- Two-year fixed: around 4.84%
- Five-year fixed: about 4.72%
These figures are based on market data from platforms like NerdWallet UK.
Some lenders offer better deals. For example, Lloyds Bank currently offers:
- Two-year fixed at 3.86%
- Five-year fixed at 3.97%
These are among the most competitive rates available this month.
What This Means for Homebuyers
If you’re planning to buy a home, now may be a good time. Rates may drop slightly in the coming months. But they’re unlikely to fall sharply unless inflation continues to ease.
If you’re remortgaging, it’s wise to compare deals now. Even a small difference in interest rate could save thousands over the loan term. Use comparison tools like MoneySuperMarket or Compare the Market to explore your options.
Final Thoughts
To sum up, UK mortgage rates are steady with a slight downward trend. Inflation is easing, and the base rate is stable. However, global uncertainty remains a factor to watch.
Keep an eye on mortgage trends, explore your options, and speak to a financial adviser if needed. Choosing the right mortgage now can protect your finances in the future.
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