Market Facts

Swap Rates have a sizeable influence on Mortgage rates, as does Inflation. This data, along with elements such as the average Fixed Rate mortgage deals and Property Prices can help give you a better feel for some of the issues that influence mortgage borrowing deals.

Movement of Swap Rates

Swap Rates influence Fixed Rate mortgage deals. Generally, any impact on Fixed Rate mortgages may be felt a few weeks later (unless other factors have a bigger influence).

INFLATION

Back in October 2022 annual inflation stood at a recent high of 11.1%.

The latest annual CPI inflation figure to June 2025 is 3.6%, just slightly up from the 3.4% yearly increase to May.

Core CPI (which excludes energy, food, alcohol and tobacco) stands at an annual 3.7%, up from the 3.5% yearly increase in May. This metric tends to have a greater influence on the Bank of England’s Base Rate decision-making.

PROPERTY PRICES

If you want to get a feel for house price sales in your own local area, you can check out the following:
gov.uk/search-house-prices (for England & Wales)
scotlis.ros.gov.uk (for Scotland)
finance-ni.gov.uk (for Northern Ireland)

Overall, the average annual UK property price rose by 2.4% (to £271,619) in July, and equated to a 0.6% month-on-month rise against the June figure.

AVERAGE MORTGAGE RATES

Residential:
2-year fixed rate deal
– Average rate, 1 August 2025 = 5.01%

5-year fixed rate deal
– Average rate, 1 August 2025 = 5.01%

Standard Variable Rate (SVR)
– Average rate, 1 August 2025 = 7.42%

Buy-to-Let:

2-year fixed rate deal
– Average rate, 1 August 2025 = 4.91%

5-year fixed rate deal
– Average rate, 1 August 2025 = 5.23%

Whatever your situation, we’d fully assess the suitability of the options on offer. And you can take comfort from the fact that we operate in this sector day-in day-out, plus have the qualifications and expertise to deliver advice that meets your needs.

Your property may be repossessed if you do not keep up repayments on your mortgage.

(Source: moneyfactscompare.co.uk, 1 August 2025)