MORTGAGE applications leapt 42 per cent last month compared to June 2024, indicating confidence is returning across the market.

And nearly two-thirds of those borrowing are opting for deals fixed across three years in a sign that many hope to cash in on future rate cuts.

According to the UK Mortgage Centre those choosing to fix are making a sensible decision.

Outlining why, Sam Fox, a mortgage specialist at UKMC said: “It’s always best to fix early if you can. You don’t want to risk rates rising, especially in this market. Securing a rate early means that if they do ever drop you can react, and match it to the lower one. The mortgage market is moving fast so early action pays off.”

According to current market data, average fixed mortgage rates remain some of the best recorded in months. Two-year fixed deals are currently hovering between 4.00% to 4.10% while five-year fixed deals are fluctuating between 4.15% to 4.25%.

Meanwhile, rates* for residential mortgages at 90% loan-to-value are currently around 4.54% (two-year) and 4.45% (five-year). This offers welcome relief for those with smaller deposits. Buy-to-let mortgage rates are also holding firm with rates currently between 4.10% to 4.44% on two-year fixes and 4.14% to 4.19% on five-year terms.

“If your current mortgage term ends this year, locking in now could protect you from any unexpected rate hikes,” Sam said. “Too many homeowners fall into the trap of

slipping onto their lender’s Standard Variable Rate (SVR), which is often significantly higher than available fixed deals. Borrowers can secure a new rate up to six months in advance, helping avoid unnecessary costs and stress down the line.”

June saw UK house prices drop by 0.8%, the biggest monthly fall since 2022, while annual growth cooled to just +2.1%. Meanwhile, remortgage activity surged, with approvals rising and lending hitting a post-February high. The Bank of England’s base rate cut in June, and potential further cuts this year, are adding extra momentum to a market that favours the proactive.

Here are UKMC’s four top tips on what you need to know secure the best mortgage possible:

Shop Around: Using a broker like UKMC opens the door to thousands of deals, not just what your bank offers.
Avoid the SVR Trap – You want to avoid going onto your lender’s standard variable rate. These rates are often a lot higher than deals on the market
Act Fast: Secure a rate now. If rates fall, your lender will switch you to the lower one. If they rise, you’re protected.
Plan Ahead: Even if you’re not moving until late 2025, securing your agreement in principle now could make all the difference.

*These figures are based on current product availability and may shift slightly depending on lender appetite and market movement. All rates were correct at the time of writing, 1st July 2025. As a mortgage is secured against your home, it could be repossessed if you do not keep up the mortgage repayments. The Financial Conduct Authority does not regulate some forms of buy-to-let mortgages.