UK Mortgage Market in 2025: A Year of Stability and Softening Rates
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The UK mortgage market has seen notable shifts and trends over the last 11 months, driven by fluctuating rates and an influx of ambitious first-time buyers. Mojo Mortgages team of mortgage advisors and experts have dug into proprietary data from January 1, 2025, to December 1, 2025, to analyse and reveal key customer preferences, regional hotspots, mortgage lending & affordability statistics and the dominance of the fixed-rate mortgage.
Fixed Rate Preferences
The appetite for stability remains paramount, with fixed-rate mortgages chosen by nearly 95.5% of customers completing a mortgage with Mojo Mortgages:
* Fixed Rate: 95.49%
* Tracker Rate: 4.42%
For those who chose a fixed rate, the 2-year period remains the king, although the 5-year fix continues to be a very strong contender:
| Initial Fixed period | % of Completed Mortgages |
|---|---|
| 2 Years | 56.77% |
| 5 Years | 35.78% |
| 3 Years | 6.85% |
| 1 Year | 0.44% |
Highest and Lowest Rates in 2025
The movement in rates from major lenders (Halifax, HSBC, Lloyds Bank, Nationwide, Natwest & Santander) demonstrated a clear pattern of softening as the year drew to a close
| Rate Type | Highest Rate | Date | Lowest Rate | Date |
|---|---|---|---|---|
| 2-year Fixed | 4.8% | 31st January 2025 | 4.1% | 1st December 2025 |
| 5-Year Fixed | 4.5% | 25th January 2025 | 4.1% | 1st December 2025 |
John Fraser-Tucker, Head of Mortgages at Mojo Mortgages, comments:
“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. Though, the data also shows remortgagers are now more prepared to shop around and
Mojo Mortgages Reports Strong 2025 Performance, Predicts Continued Momentum into 2026
Mojo Mortgages, a digital mortgage broker, has reported a strong finish to 2025, driven by consistent demand for fixed-rate mortgages and a resilient first-time buyer market.The company observed a surge in remortgaging activity as borrowers actively sought better deals,indicating a rate-sensitive market.Mojo Mortgages anticipates this positive trend will continue into 2026, particularly in the North west and Greater London regions.
2025 Completion Trends: A Seasonal Breakdown
Mojo Mortgages data reveals distinct seasonal patterns in mortgage completion rates throughout 2025. Here’s a breakdown:
* Autumn (Sept, Oct, Nov, Dec): 26.94% of completions (469 completions in August)
* Spring (Mar, Apr, May): 25.09% of completions (660 completions in March)
* Winter (Jan, Feb): 13.18% of completions (339 completions in Febuary)
These figures highlight the peak activity during Autumn and Spring, with a noticeable dip in completions during the Winter months. The highest monthly completion volume occurred in March, with 660 completions.
Key Drivers of Market Activity
According to Mojo Mortgages,several factors contributed to the strong performance in 2025:
* Demand for Fixed-Rate Stability: Borrowers prioritized the security of fixed-rate mortgages amidst economic uncertainty. https://www.moneysavingexpert.com/mortgages/fixed-vs-tracker provides a helpful comparison of fixed and tracker mortgages.
* Resilient First-Time Buyers: Despite affordability challenges, first-time buyers remained a significant force in the market. Government schemes like the Lifetime ISA and Help to Buy (where still available) likely played a role in supporting this segment. https://www.gov.uk/lifetime-isa
* Rate Sensitivity & Remortgaging: Falling mortgage rates towards the end of the year spurred remortgaging activity, as borrowers sought to secure more favorable terms. This demonstrates a proactive approach from borrowers in optimizing their mortgage costs.
* Regional Variations: The North West and Greater London were identified as areas of particular strength, suggesting localized economic factors or housing market dynamics are at play.
Expert Commentary: john Fraser-Tucker on the 2026 Outlook
John fraser-Tucker of Mojo Mortgages commented on the year’s performance and outlook: “2025 has been defined by two key factors: the unwavering demand for fixed-rate stability and the resilience of the first-time buyer. We’ve seen mortgage rates hitting their annual lows right at the end of the year, providing a real boost for buyers moving into 2026.”
He further added, “This trend, coupled with the clear shift of remortgagers actively seeking out new lenders for the best deal, suggests that borrowers are savvy and highly rate-sensitive.We anticipate this positive momentum and buyer confidence to continue into the New Year, particularly in the North West and Greater London areas.”
Looking Ahead to 2026
Mojo Mortgages anticipates continued positive momentum in the mortgage market in 2026. The expectation is that falling mortgage rates and increased borrower confidence will drive further activity, particularly among remortgagers. Regional variations are expected to persist, with the North West and Greater London remaining key areas to watch.
Key Takeaways:
* 2025 saw strong mortgage completion numbers, driven by fixed-rate demand and first-time buyers.
* Autumn and Spring were peak seasons for mortgage activity.
* Borrowers are increasingly rate-sensitive and actively seeking better deals.
* The North West and Greater London are expected to be strong markets in 2026.