The average two- and five-year fixed rates have continued on the downward trend for July, as lenders also relaxed stress tests.

This is according to the latest Moneyfacts UK Mortgage Trends Treasury Report data which also reveals that mortgage product availability rose and the average shelf-life of a deal fell to 16 days.

Average mortgage rates on the overall two- and five-year fixed rates fell by 0.03% and 0.01% to 5.09% and 5.08%, respectively in July 2025.

At the start of July 2024, the average five-year fixed rate was 5.53%.

The average two- and five-year fixed rates were last lower in September 2022 (4.24%) and October 2024 (5.07%) respectively.

The average shelf-life of a mortgage product fell to 16 days, from 17 days a month ago, now at its lowest count since March 2025 (16 days).

Product choice overall rose month-on-month, to 6,908 options, up year-on-year (6,658 – July 2024), outside of May 2025 (6,993), this was last higher in October 2007 (7,421).

The average ‘revert to’ rate or standard variable rate (SVR) fell to 7.42%. In comparison, the highest recorded was 8.19% during November and December 2023.

Commenting on the latest data, Moneyfacts finance expert Rachel Springall  said: “Fixed mortgage rates have continued on their downward trend, which will delight the millions of borrowers due to refinance this year. Lenders have also been relaxing their stress test rules, which will further boost affordability.

“The repricing momentum from lenders was rife in June, leading to another fall in the average shelf-life of a deal to 16 days. However, the intensity of fixed rate cuts calmed, seeing the average two- and five-year fixed rates drop by 0.03% and 0.01%, respectively.”

Longer-term rates

Springall added that a deeper dive into the loan-to-value (LTV) sectors also revealed the average five-year fixed rate at 60% loan-to-value rose, and with the five-year fixed rate dropping by just 0.01%, which could  raise concerns over the diverging path of longer-term fixed rates.

“There are expectations for fixed rate cuts to heat up this summer across the spectrum, fuelled by swap rate volatility. The mortgage market has shown how far it has improved over recent years, as borrowers who locked into a two-year fixed rate deal back in July 2023 would have been paying 6.41% in interest on average, compared to 5.09% now. That is a difference of £199 per month in repayments on a £250,000 mortgage over 25 years.”

The growth in overall product availability has creates a positive sentiment, according to Springall, reaffirming the more calming churn of mortgage ranges by lenders.

“This stance is far beyond the upheaval endured by the mortgage market two years ago, when there was a drop of 571 products between the start of June and July 2023, the biggest plummet since the ‘mini-Budget’ which caused unprecedented chaos around both product choice and mortgage interest rates.”