UK fixed mortgage rates have climbed again, lifting average pricing for the loans Scottish first-time buyers actually take out even though the Bank Rate has been held at 3.75%.
Moneyfacts put typical pricing on five-year fixed residential mortgages at 5.92%, a level last seen around the middle of October 2023. Two-year fixes averaged 5.88%, marking their dearest point since spring.
Low-deposit borrowers saw even sharper moves in that mid-September week: the average two-year fix at 95% loan-to-value rose from 6.15% to 6.33%, and the average five-year at 95% LTV from 6.07% to 6.25%.
Those high-LTV averages matter for Scottish first time buyers, as ONS figures for 2025 put the median first-time buyer LTV near 89.7%.
Although Bank Rate remains at 3.75% after the September MPC hold, swap rates are at near 30-day highs. Retail fixed rates can and do diverge from Bank Rate when swap markets move.
Sources
- https://www.mirror.co.uk/money/mortgage-rates-high-house-value-37685428
- https://www.mortgagestrategy.co.uk/news/average-five-year-fix-at-highest-level-since-2023-moneyfacts/
- https://www.bankofengland.co.uk/monetary-policy/the-interest-rate-bank-rate
- https://www.ons.gov.uk/peoplepopulationandcommunity/housing/bulletins/mortgagestatisticsuk/2025