If you secured a two-year fixed mortgage in early 2023, there’s potentially good news on the horizon as your deal approaches expiration. The mortgage landscape has shifted considerably since then, with many borrowers having locked into rates that approached 7% during the inflation-fighting interest rate hikes of 2023[^4] seeing new rates below 6% [^1].
The Changing Rate Environment
Recent developments have brought welcome relief to many homeowners. According to the latest data, the Bank of England reduced its base rate to 4.5% in February 2025, representing a significant reduction from the 5.25% peak witnessed last year[^2]. Major lenders have quickly responded to this change, with several prominent institutions reducing their mortgage rates. Most notably, one major high street bank recently introduced a fixed-rate mortgage at 3.99% – the first time rates have dipped below 4% in several months[^2].
Current Mortgage Rate Trends
Mortgage rates have experienced considerable fluctuation over recent years. While significantly lower than during the volatile periods of 2023, they have moved both up and down as financial markets remain cautious about the pace of potential rate reductions, according to industry analysts[^3].
Financial data provider Moneyfacts[^4] reports that the average two-year fixed rate reached its peak at 6.86% in 2023—among the highest figures recorded in over a decade. As of February 2025, some of the most competitive deals now range between 4.13% and 4.23%. However, these figures remain higher than the average rate of 2.25% seen in 2021, when interest rates were at historic lows[^5].
The Value of Professional Mortgage Guidance
Finding the right mortgage involves more than simply identifying the lowest interest rate—it requires ensuring your mortgage aligns with both your current situation and future plans. Our team can help you navigate the numerous options available from our broad panel of lenders across the marketplace.
With constantly fluctuating deals and numerous lenders to choose from, the mortgage market can be challenging to navigate alone. We’re here to guide you through finding an arrangement that suits your specific circumstances and long-term objectives.
Protecting What Matters
Our advice extends beyond just securing a mortgage. We believe in helping you protect your investment and family’s financial security. A mortgage represents one of life’s most significant financial commitments, and proper protection is essential should unexpected circumstances arise.
We can provide a comprehensive overview of your options, including insurance and protection solutions, to help ensure your financial stability regardless of what challenges life may present.
Steps to Take When Remortgaging
If your current mortgage deal is set to expire within the next six months, it’s advisable not to delay. Many lenders allow borrowers to secure a new rate in advance, enabling you to lock in today’s more favorable rates while remaining positioned to benefit from any further reductions.
Consider these recommendations:
- Review current rates promptly: Competitive deals can disappear quickly, so timely action could result in significant savings. Try our mortgage calculator or contact our team today.
- Choose between shorter or longer fixed terms: A two-year fix offers flexibility if rates continue to fall, while a five-year fix provides longer-term stability.
- Consult with a mortgage professional: Expert guidance ensures you secure a mortgage that supports your financial future.
Don’t Miss This Opportunity
The mortgage market is evolving rapidly, and while rates have decreased, there’s no guarantee they’ll remain at these levels. If you’re among the millions of homeowners remortgaging this year, securing a deal now could represent substantial savings. Contact our team today to discover how we can help find a suitable arrangement for your needs.
Your home/property may be repossessed if you do not keep up repayments on a mortgage or other debt secured on it.
We do not charge a fee for mortgage advice.
Sources:
[^1]: 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]
[^2]: 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]
[^3]: Moneyweek (2025) Will mortgage rates fall this year?. Available at: https://moneyweek.com/personal-finance/mortgages/latest-UK-mortgage-rates [Accessed 12th Feb 2025]
[^4]: 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]
[^5]: 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 information in this article is correct as of the publish date 17th March 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 any of the above links you are leaving our website. Please note that we are not responsible for the accuracy of the information contained within the linked site(s) accessible from this page.
At Yes Mortgage Services, we offer a comprehensive range of products from across the market.
Irrespective of whether you are looking to buy a new home, re-mortgage an existing property, or looking to protect your family from the unpredictability that life throws at it or protect your income if you are unable to work due to accident or ill health.
Yes Mortgage Services are committed to offering you the highest possible standards of service. We can undertake the whole process from answering the initial questions through to handling multiple product applications. Ensuring that everyone gets treated with the same urgency and maintaining your best interests are our main goals irrespective of the value of the mortgage.
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