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Lenders drive down the cost of low deposit mortgages: Lowest point since September 2022

ended 11. November 2025

Moneyfacts UK Mortgage Trends Treasury Report data reveals the average two-year fixed rates at 95% and 90% loan-to-value have fallen to their lowest points since September 2022. 

The reduction in cost coincides with a rise in the choice of deals at 95% loan-to-value, reaching its highest count in 17 years (March 2008).

  • Lenders have pushed down the cost of low deposit mortgages, as a result, the average two-year fixed deal at 95% loan-to-value has fallen to 5.41%, its lowest point since September 2022 (4.51%). The average two-year fixed deal at 90% loan-to-value has fallen to 5.24%, its lowest point since September 2022 (4.27%).
  • Average mortgage rates on the overall two- and five-year fixed rates fell by 0.04% and 0.01%, to 4.94% and 5.01% respectively. This comes after rates rose the prior month for the first time since February 2025.

What is your reaction to the figures? What do they show about the economy? Is it a good news for borrowers? Why are lenders cutting rates?

Responses by this morning.

3 responses from the Newspage community

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Rob MansfieldVerified
Independent Financial Advisor at Rootes Wealth Management
With house prices so high, the market is unaffordable for many. These types of deals are lenders trying to find that sweet spot of creating mortgages that people can afford without taking on too much risk. Lenders are cutting back on their safety margin to try to create demand, which doesn't suggest a healthy market and we could see trouble if the economy downturns.
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Darryl DhofferVerified
Founder at The Mortgage Geezer
With many lenders cutting rates to fill up their Christmas hampers, its a good time currently to secure a mortgage deal if you have a 5-10 deposit. Fixed priced mortgages have seen decreases as a consequence of recent Sonia Swap rate reductions, and its great to see low deposit fixed rate deals reflecting this., but with the Budget looming, a switch could be on the horizon quicker then Ted Bundy in the Electric Chair
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Pete MuglestonVerified
Mortgage Advisor & Managing Director at onlinemortgageadvisor.co.uk
The drop in low-deposit mortgage rates reflects the Bank of England’s five rate cuts since June 2024, after inflation fell from over 10% the year before. Borrowers should take advantage while they can. With inflation creeping back up to 3.8% and a painful Budget ahead for businesses, there’s a real risk rates could rise again if prices keep climbing.

Weak growth and rising costs could signal stagflation is ahead for the UK economy, a nightmare Rachel Reeves will be desperate to avoid.