What It Means Today for Remortgages and First-Time Buyers

If you took out a mortgage at the peak of the rate rises in September 2022 and beyond, you are certainly not alone, and you may now be in a position to secure a better deal. 

At Thomas Oliver, we are supporting many homeowners who locked into short term fixed-rate mortgage products when mortgage interest rates were at their highest and are now approaching the point where they must switch.

If you locked into a mortgage deal with an interest rate above 5%, now is a good time to get individual mortgage advice.

Did You Take Out a High-Rate Mortgage During the Peak?

During the height of the interest-rate surge, particularly between late September 2022 immediately following the mini-budget through 2023, many borrowers felt they had little choice but to secure fixed-rate deals at historically high levels. Many of these were very short-term fixes, e.g., two-year deals, taken on the assumption that rates would fall later, and now, those deals are coming to an end.

As Katherine Mumford, Mortgage Broker in Tottenham, North London Explains:

“We’re speaking daily with clients who had no choice but to take 5–6% mortgages during the peak. If your fixed rate ends soon, you do not need to stay on a high rate. Speak to a mortgage adviser early, we may be able to secure a more suitable deal in advance, depending on your circumstances.”

If you locked into a two-year fixed rate in late 2022 or 2023, you are very likely approaching your renewal window now, and this is the moment to get help from a mortgage broker who can compare an extensive panel of lenders and guide you toward a more affordable option.

Background – The 2022 Mini-Budget and Its Impact

In September 2022, the “mini-budget” led to a wave of turbulence in UK financial markets. Gilt yields shot up, the pound weakened significantly, and lenders quickly responded by repricing or withdrawing mortgage products altogether. In the weeks that followed, average mortgage rates spiked, particularly for fixed-rate deals.

Mortgage Rate Impact: Detailed Figures

Here are some key figures from that period and after:

• On 20 October 2022, not long after the mini-budget shake-out, the average two-year fixed mortgage rate peaked at around 6.65%. 
• Around the same time, the average five-year fixed mortgage rate reached approximately 6.51%. 
• Fast-forward to May 2025, the average two-year fixed rate had fallen to 5.18%, while the average five-year fixed rate was approximately 5.10%. 
• In May 2025, lender pricing also showed narrowing spreads: at 60% LTV the two-year fixed was about 4.65%, and the five-year was 4.58%; at 90% LTV, two-year fixed was 5.42% and five-year fixed 5.24%. 
• By November 2025, according to Moneyfacts data, the average two-year fixed was 4.94%, and the average five-year fixed was 5.01%. 

Volume of Deals Coming to Expiry

The scale of potential remortgaging need is significant. According to UK Finance, around 700,000 fixed-rate mortgages were expected to mature in the second half of 2024, and a further 1.8 million in 2025. This means a very large cohort of homeowners who locked in high-rate, short-term deals are facing key decisions.

These are not just abstract statistics, for many, this is personal. Higher borrowing costs taken during 2022–2023 may still be weighing on household budgets, and locking in a better rate now could materially improve financial wellbeing.

How the Mortgage Market Looks Today

Fast-forward to 2025, and while rates remain above the record lows of pre-2022, the market has changed and competition is back. 

According to money-market data: average two-year fixed deals have come down significantly, and five-year fixed rates are also much more attractive than they were during the immediate post-mini-budget peak.

As of May 2025, the average two-year fixed rate was 5.18%, while five-year fixed was 5.10%, narrowing the gap between short- and medium-term fixes. By August 2025, Moneyfacts reported that the average two-year fixed rate fell to 4.99%, the first time it had dropped below 5% since 29 September 2022, when it was 4.87%. 

Similarly, the average five-year fixed rate dipped to 4.99% in August 2025, the first time it had fallen below 5% since May 2023. 

In terms of product availability, in May 2025 there were 6,993 mortgage products listed by Moneyfacts, the highest number in many months, signalling that competition is returning and more options are accessible. 

General Remortgage – What You Should Know

If your two-year fixed rate is expiring soon, especially if you locked it in during that high-rate period, acting now could make a real difference. Without intervention, you may automatically revert to your lender’s standard variable rate (SVR), which remains historically elevated. 

But choosing to remortgage now could reduce your repayments, improve affordability, and give you flexibility.

Working with a mortgage broker helps you assess not just the headline rate, but also the overall structure of your mortgage: how long to fix for, whether to overpay, what the early-repayment charges are, and what impact your loan-to-value ratio (LTV) has on your options. 

At Thomas Oliver, our advisers make sure these factors are reviewed and aligned with your long-term goals.

First-Time Buyers – Entering the Market Now

For first-time buyers, the improved but still relatively high-rate environment means that decisions around affordability, deposit size and term length are more important than ever. Although rates have eased from their post-mini-budget highs, they remain well above the ultra-low era. 

Engaging with a Thomas Oliver Mortgage Broker means you can navigate today’s market more effectively, comparing deals, understanding realistic affordability, and choosing a mortgage that works both now and in the future.

Why Advice Matters in This Post-High-Rate Environment

The mortgage market is no longer “lowest rate wins.” With a wide variety of products, changing swap-rate markets, and increasing regulatory scrutiny, the importance of good advice can’t be overstated. 

A regulated mortgage broker, like Thomas Oliver, can help you evaluate not just the interest rate, but the long-term suitability of each product for your personal situation and steer you away from costly missteps.

In Summary

The period following the 2022 mini-budget saw fixed-rate mortgage rates surge to historic highs, especially for two- and five-year deals. Many homeowners locked in short-term, expensive fixes, often out of necessity. 

Now, as those deals come to an end, there is a real opportunity to remortgage into more favourable terms.

With hundreds of thousands of mortgages due to expire in 2024–2025, and average fixed rates having dropped significantly since the peak, professional mortgage advice is invaluable.

Contact Thomas Oliver Today

If you secured a mortgage during the high-rate period and your deal is coming to an end, speak to one of our mortgage advisers today. We offer a fee-free initial consultation, and we’ll help you find a better rate, assess your options, and build a plan that aligns with your long-term goals.

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YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.

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Thomas Oliver UK LLP is an appointed representative of The Openwork Partnership, a trading style of Openwork Limited which is authorised and regulated by the Financial Conduct Authority.

Approved by The Openwork Partnership on 16/12/2025.

Sources:

Bank of England – Monetary Policy Reports, Bank Rate history, and Market Notices
https://www.bankofengland.co.uk/boeapps/database/Bank-Rate.asp

Office for National Statistics (ONS) – Inflation (CPI/CPIH), earnings, household income, and housing market data
https://www.ons.gov.uk/economy/inflationandpriceindices
https://www.ons.gov.uk/peoplepopulationandcommunity/personalandhouseholdfinances/incomeandwealth

HM Treasury – Budget documents and fiscal policy publications, including data relating to the 2022 Mini-Budget
https://www.gov.uk/government/publications/the-growth-plan-2022-documents

UK Finance – Mortgage trends and lending statistics
https://www.ukfinance.org.uk/data-and-research/data/mortgage-lending

Halifax House Price Index – Used for trend comparison
https://www.halifax.co.uk/assets/pdf/mortgages/halifax-house-price-index.html