Uk Mortgage Rates In July 2025 – Where Do They Stand Now?
TheHub@Druce- •
- 05 Aug 2025
Uk Mortgage Rates In July 2025 – Where Do They Stand Now?
How are Mortgage rates set?
Lenders set their mortgage rates based on a mix of factors, including:
- The Bank of England base rate (currently 5.25%)
- The cost of borrowing on financial markets
- Their own risk assessments and business models
The base rate hasn’t changed since August 2023, and many experts believe the first cut may come towards late 2025.
Average UK mortgage rates – as of July 2025
| Mortgage Type | Typical Rate (25% Deposit) | Typical Rate (10% Deposit) |
| 2-year fixed | 5.10% | 5.82% |
| 5-year fixed | 4.63% | 5.31% |
| 10-year fixed | 4.84% | N/A |
| 2-year tracker | 5.14% | N/A |
These rates are based on Rightmove’s July 2025 data. Your individual offer will vary depending on your financial profile and lender.
What's changed since last month?
| Deal Type | June 2025 Avg. | July 2025 Avg. | Change |
| 2-year fixed | 5.04% | 5.10% | +0.06% |
| 5-year fixed | 4.56% | 4.63% | +0.07% |
| 10-year fixed | 4.76% | 4.84% | +0.08% |
| 2-year tracker | 5.09% | 5.14% | +0.05% |
While all key products rose slightly in July, the increase was marginally likely a result of economic uncertainty and caution when interest rate cuts begin.
Should you fix or track your mortgage now?
There’s no universal answer. It depends on your appetite for risk, how long you plan to stay in the property, and your financial buffer. Some borrowers are locking in 5-year fixed rates for peace of mind. Others are taking a chance on trackers, hoping for rate cuts in 2026.
Tips for Homebuyers and Investors in 2025
1. Shop around for the best deal
Use brokers or comparison tools to check what’s available—rates and fees can vary widely.
2. Consider total cost, not just the rate
Factor in arrangement fees, valuation costs, and incentives like cashback or free legals.
3. Think long term
If you're planning to hold the property for more than 5 years, locking in a competitive fixed rate might make sense—especially if your income is steady.
4. Investors:
Rental yields still outperform savings interest in many London zones. If you're buying to let, review mortgage stress test requirements and check how interest rates affect net returns.
5. Don’t try to time the market
Waiting for the “perfect” rate may mean missing good opportunities. If a deal fits your budget and your life goals may be the right one.
At @Druce, we work closely with leading mortgage brokers to ensure our buyers get trusted, up-to-date advice tailored to their property ambitions.
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Let our team connect you with the right support—whether you're securing a first home or financing your next investment.
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