Rachel Springall, a finance expert at Moneyfactscompare.co.uk, said that before September 2025, the average mortgage rate had not dipped below 5% since September 2022
Average mortgage rates dipped back below 5% in November – but homeowners can still save money by checking for the best rates before they remortgage.
Moneyfactscompare.co.uk said at the start of October, the average mortgage rate was 5.01%.
Rachel Springall, a finance expert at Moneyfactscompare.co.uk, said that before September 2025, the average mortgage rate had not dipped below 5% since September 2022.
She added: “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.”
All eyes will now be on the Bank of England to see whether it chooses to hold the base rate at 4% when it meets this Thursday, or if another cut will be announced.
The base rate directly impacts mortgage rates, especially for variable and tracker mortgages, causing monthly payments to rise or if the base rate is changed.
If you have a fixed rate mortgage, your rate will remain the same until you come to remortgage – at which point, any new rates available will be influenced by the base rate at that time.
How to find the cheapest mortgage rates
If your current mortgage is expiring, you should gather all the relevant information about your existing deal – such as the rate you are on and your loan to value (LTV). This is the amount you are borrowing compared to the property’s value.
Mortgage rates are often cheaper, when your LTV is lower, as you are borrowing less. If you are thinking of leaving your current deal early, check if any early repayment charges apply as these can be very expensive.
Once you have all your mortgage details, you should start looking at what other deals are out there.
You can normally do this by using online comparison tools, or by speaking to a mortgage broker, as they will often have access to deals that aren’t available on the open market.
You should also speak to your current lender to see what rates it can offer you. This is known as a product transfers, which is where you get a new deal from the same lender.
Once you’ve got a good idea of what rates you may be able to apply for, you will need to decide whether you want to fix – and if so, for how long – or whether you want to opt for a tracker or variable mortgage.
You can typically lock in a new mortgage up to three to four months, sometimes six months, before your current deal ends.
It is also recommended that you check your credit report before remortgaging, to ensure your borrowing history is up to scratch and there are no errors in your profile.
Karen Noye, mortgage expert at Quilter, said: “In this environment, seeking professional mortgage advice is vital. A mortgage advisor can help you navigate the fast-changing market, compare deals across lenders, and secure the best product for your personal circumstances.
“This will include assessing the most cost-effective options, as many lower rate deals will come with fees, which can sometimes outweigh any perceived ‘savings’.
“It’s important to remember that locking in a new deal early can help you budget more effectively, particularly for those remortgaging and potentially upping their monthly payments if they are moving from a lower rate deal.
“What’s more, if rates drop before your new mortgage begins, most lenders will allow you to switch to a cheaper deal.“