London, July 16, 2026, 09:20 (BST)
- The UK’s total available mortgage products edged up 0.6% to 7,177, but 95% LTV deals dropped 3.4% to 450, showing the rebound is lagging for buyers with just 5% down.
- Average UK two- and five-year fixed mortgage rates hit 5.52%. In the U.S., the average top-tier 30-year rate dropped by 11 basis points in two sessions to 6.64%.
Britain’s mortgage market is picking up again, but some buyers with thin deposits are being left out. Moneyfacts said in its July data that the total number of mortgage products increased for a third straight month. But the number of 95% loan-to-value deals—loans covering nearly all the home price—dropped to 450 from 466.
Investors are paying more attention to the spread than to the fall in headline rates. More mortgage deals at 60% and 90% loan-to-value could help safer new loans, but deals at 95% fell, which could slow first-time-buyer activity and curb home sales. The gains are genuine, but still limited.
Average two- and five-year fixed mortgage rates both dropped to 5.52% in June, down 16 and 11 basis points, according to Moneyfacts. That’s the sharpest monthly fall since October 2024. The firm said lenders cut rates as swap rates, which drive fixed loans, moved lower. Bank Rate is still at 3.75% as the Bank of England heads toward its July 30 meeting.
| UK mortgage measure | June snapshot | July snapshot | Change |
|---|---|---|---|
| Total products | 7,132 | 7,177 | Up 45, or 0.6% |
| 95% LTV products | 466 | 450 | Down 16, or 3.4% |
| 90% LTV products | 891 | 913 | Up 22, or 2.5% |
| 60% LTV products | 810 | 835 | Up 25, or 3.1% |
| Average two-year fixed rate | 5.68% | 5.52% | Down 16 basis points |
| Average five-year fixed rate | 5.63% | 5.52% | Down 11 basis points |
Moneyfacts collects data on the first day of every month. Percentage moves are based on their published numbers.
April’s market turmoil dropped available products to 6,201. Out of the 1,283 deals pulled, 976 came back—a 76% recovery rate. But there are still 307 fewer products on the market, or 4.1% less than the 7,484 before the disruption.
Lenders are fighting hardest for borrowers with bigger deposits. At 60% loan-to-value, number of products climbed 3.1% and the average two-year fixed fell 20 basis points to 4.97%. With 90% LTV, choice went up 2.5% and the rate was down 18 basis points at 5.76%. For buyers with 95% LTV, the average only slipped 10 basis points to 6.13% and product numbers dropped.
Moneyfacts finance expert Rachel Springall said fixed mortgage rates are dropping at their fastest clip in nearly two years, giving borrowers some relief. She added that more rate cuts could be held up if geopolitical tensions return. Propertymark President Ian Harris said lower mortgage rates should give buyers and sellers more room to move.
The two-year average drop trims the model monthly payment to £1,538, down about £24, on a £250,000 repayment mortgage over 25 years. The five-year deal cuts it by £16 a month. It takes some pressure off, but affordability is still tight.
| Illustrative mortgage | Reported rate move | Monthly payment, before → after | Monthly saving |
|---|---|---|---|
| UK two-year fix, £250,000 over 25 years | 5.68% → 5.52% | £1,562 → £1,538 | About £24 |
| UK five-year fix, £250,000 over 25 years | 5.63% → 5.52% | £1,555 → £1,538 | About £16 |
| U.S. 30-year fixed rate, $400,000 over 30 years | 6.75% → 6.64% | $2,594 → $2,565 | About $29 |
Figures include just principal and interest, leaving out fees, taxes or insurance. UK fixed rates last for two or five years from closing, not the whole loan like a 30-year U.S. fixed mortgage.
Average top-tier U.S. 30-year fixed mortgage rates dropped 11 basis points in two days to 6.64%, their lowest in a little more than a week, Mortgage News Daily said. The slide came after June’s consumer prices slipped 0.4% on the month and producer prices were down 0.3%, U.S. Bureau of Labor Statistics data showed.
UK relief may not last long. June inflation data hits on July 22, just eight days out from the Bank of England meeting, and lenders are now keeping mortgage deals available for just 14 days on average. If inflation comes in hotter or geopolitical stress returns, swap rates could climb before buyers can close.
Investors are watching to see if lenders bring back 95% loan-to-value deals, not just if average rates drop from 5.52%. More products suited to bigger deposits would help credit quality and keep risk down, but the broader housing recovery would lean on buyers with more existing equity.
