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. In April, rates fell following the Trump tariff announcements, along with a convergence of the 2, and 5-year rates. And this trend continues into May.

INFLATION

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

The latest annual CPI inflation figure to March 2025 is 2.6%, down from the 2.8% yearly increase in February.

Core CPI (which excludes energy, food, alcohol and tobacco) stands at an annual 3.4%, down from the 3.5% yearly increase in February. 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 3.4% (to £270,752) in April although this was a slight slowdown against the year to March figure (3.9%)

AVERAGE MORTGAGE RATES

Residential:
2-year fixed rate deal
– Average rate, 1 May 2025 = 5.18%

5-year fixed rate deal
– Average rate, 1 May 2025 = 5.10%

Standard Variable Rate (SVR)
– Average rate, 1 May 2025 = 7.58%

Buy-to-Let:
2-year fixed rate deal
– Average rate, 1 May 2025 = 5.04%

5-year fixed rate deal
– Average rate, 1 May 2025 = 5.33%

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.

Most Buy-to-Let mortgages are not regulated by the Financial Conduct Authority.

You may have to pay an early repayment charge to your existing lender if you remortgage.

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

(Source: Chatham Financial, Sterling Overnight Index Average (SONIA) Swap rates to 1 May 2025)
(Source: Office for National Statistics, CPI, 16 April 2025)
(Source: Nationwide, House Price Index, April 2025)
(Source: moneyfactscompare.co.uk, 1 May 2025)