June 2025 UK Mortgage Update: Rates, Prices & What’s Next
Your monthly guide to what’s really happening out there.
Still 4.25%, but for how much longer?
The Bank of England kept the base rate at 4.25% again in June. It’s the fourth time in a row we’ve seen no movement, but this stability may not last long.
With inflation slowly easing, a rate cut is now more than just a whisper, it’s a growing expectation.
Many analysts are betting on August.
So, if you’re on a tracker, the next few weeks could bring a welcome drop. And if you’re thinking about fixing, the June 2025 UK mortgage update shows that deals are already adjusting in advance.
Fixed rates are finally softening
It’s been a while since we could say this:
fixed rates are coming down.
Two-year fixes are now averaging around 5.05%, and five-year deals are hovering just below that. Lenders have started quietly adjusting, especially for buyers with solid deposits or those remortgaging early.
If your deal ends soon (or even within six months), it’s worth checking what’s out there. We’ve helped plenty of clients move early and save before rates swing again.
What’s happening with house prices?
Nationally, prices dipped slightly in June, down 0.8% according to Nationwide. It’s the sharpest monthly fall in nearly two years. But it’s not a uniform story.
Scotland and Northern Ireland saw yearly growth, while London stayed mostly flat.
What this means: there’s no one-size-fits-all market right now. If you’re thinking about buying or moving, your local area matters more than the headlines.
First-time buyers are finding breathing room
Slower price rises, modest wage growth, and easing lender rules have started to open doors again, literally.
First-time buyers are cautiously stepping back into the market, and the June 2025 UK mortgage update shows clear signs of that shift.
If you’ve been on the sidelines, wondering when the right time is… this could be it.
Thinking of remortgaging? Here’s a thought.
You don’t need to wait until your deal ends to act. In fact, many fixed rate offers right now are lower than they were just a few months ago, even before any base rate cuts.
Getting ahead of the curve can mean locking in a better deal, and having more time to plan. No pressure, just options.
Looking ahead
The next Bank of England meeting is set for 7 August.
We’ll be watching closely, not just for the decision itself, but for what it signals for the rest of 2025.
Rate cuts? More lender competition?
Easier affordability? It’s all on the table.
Let’s make sense of it together
Markets change.
And as the June 2025 UK mortgage update makes clear, so do rates, prices, and possibilities.
Your mortgage should make sense no matter what the market is doing. Whether you’re buying, switching, or just curious, we’re here to help.
Your future, your mortgage.
Pera Mortgages