The UK mortgage market has seen significant shifts and trends over the last 11 months, driven by fluctuating rates and an influx of ambitious first-time buyers, says Mojo Mortgages.
Mojo’s data shows that this year 95.5% of customers completed a mortgage with a fixed rate product, while 4.42% decided on a tracker rate.
For those who chose a fixed rate, a two-year period remained on top at 56.77%, although a five-year fix continued to be a very strong contender at 35.78%.
The movement in rates from major lenders such as Halifax, HSBC, Lloyds Bank, Nationwide, Natwest and Santander, demonstrated a clear pattern of softening as the year drew to a close.
A two-year fixed rate reached a peak of 4.8% on 31 December while the lowest rate was on 1 December at 4.1%.
A five-year fixed reached a peak on the 25 January at 4.5% while the lowest rate was on 1 December at 4.1%.
Meanwhile, the busiest time for customers completing a mortgage was Autumn between September to November, accounting for 35% of completed mortgages, with October being the single most popular month.
Mojo saw a 5.7% increase in first-time buyers seeking help compared to 2024, with the average FTB completing a mortgage at 32.3 years old.
It also found that the North West was the most active region of mortgage hunters
Mojo Mortgages head of mortgages John Fraser-Tucker says: “While rates saw a high and low throughout the year, the market ended 2025 with rates softening, providing a significant boost of confidence for buyers entering the new year.”
“The fact that the lowest 2-year and 5-year fixed rates from our key lenders were both recorded at a competitive 4.1% on December 1st shows just how much things have improved since the highs we saw in January.”
“This softening trend is clearly what borrowers have been waiting for. The vast majority of our customers – over 95% of those completing a mortgage – chose to lock in a fixed rate, highlighting a continued desire for payment stability.”
“However, the data also shows remortgagers are now more prepared to shop around and switch to a new lender, rather than just taking a product transfer. This suggests the small, downward movement in rates has created enough competition among lenders to encourage borrowers to actively hunt for the best available deal, and we fully expect this competitive environment to intensify as we move into 2026.”
