Report shows first fall in average mortgage rates for weeks

August 24, 2026 by Brendan O'Neill

Rates

A new report shows that average UK mortgage rates have fallen, which is the first time this has happened in several weeks.

The rate watch report published by Moneyfacts shows a week-on-week fall in average rates. The last time this happened was over one month ago. The most dramatic rate drops were those for 70% loan-to-value (LTV) fixed three-year mortgages. The average rate for those products went down by 25bps, which leaves it at 5.69%.

This is not the only mortgage product to see rate drops though. Fixed ten-year mortgages with 95% LTV saw an average rate drop of 9bps. This left the average rate for them on 6.16%.

When it comes to fixed two-year mortgages, the average rate fall was somewhat smaller. It went from 5.63% to 5.61%. Meanwhile, five-year fixed products saw a slightly bigger weekly rate drop, to 5.64% from 5.67%.

Caitlyn Eastell is a personal finance analyst at Moneyfacts. She was quoted by Mortgage Strategy as saying:

“Borrowers may be reassured by the first weekly fall in average rates in over a month, however, it should not be taken for granted, as it isn’t guaranteed that rates will continue to drop.”

She went on to point out that average fixed rates are still higher across the board than they were earlier in the summer. Eastell concluded by stating that lenders will continue to monitor swap rates and respond to them.

With the mortgage market still very turbulent at the moment, there is a real need for mortgage advisors who have CeMAP training.