Average UK mortgage rates have fallen back below 5% in November

Average mortgage rates in the UK have dipped back below 5% in November, after rising above that point last month, according to a financial information website.

Moneyfactscompare.co.uk said its average mortgage rate stood at 4.99% on November 3 – the same level as it was two months earlier, on September 3.

At the start of October, the average mortgage rate was 5.01%, according to the website’s records.

Moneyfacts’ average mortgage rates were calculated from the total of on-sale ‘core’ market, fixed and variable tracker mortgages.

Some mortgages were excluded, such as shared ownership or equity, or new-build only deals, or mortgages for people with adverse credit backgrounds.

Rachel Springall, a finance expert at Moneyfactscompare.co.uk, said: ‘Borrowers will no doubt be thrilled to see mortgage rates drop, particularly the millions due to come off a cheap fixed rate before the year is over.

‘It is a notable milestone to see the Moneyfacts average mortgage rate drop below 5%, although it remains uncertain on how long this can be sustained.’

Springall said that before September 2025, the average mortgage rate had not dipped below 5% since September 2022.

By early October 2022, the average mortgage rate was sitting above 6%, according to Moneyfacts. Mortgage rates jumped following the ‘mini-Budget’.

Springall added: ‘The enduring uncertainty in the aftermath of the mini-Budget led to not only a rise in rates, but lenders pulled hundreds of deals from sale.’

The average mortgage rate has not stood above 6% since November 2023, Moneyfactscompare.co.uk said.

Springall said: ‘Fast-forwarding to the present day, mortgage rates are much lower thanks to base rate cuts and swap rate movements.’

Mary-Lou Press, president of NAEA, National Association of Estate Agents, Propertymark, said: ‘It’s extremely positive to see a far more competitive lending market than only 12 months back.

‘Consumers have faced a doubled-sided challenge in recent years with elevated inflation and heightened base rates.’

She added: ‘It will be a case of all eyes on the Bank of England on Thursday, as the next base rate decision is made.’

By Vicky Shaw, PA Personal Finance Correspondent

Press Association: Finance

source: PA

Copyright 2025 Alliance News Ltd. All Rights Reserved.