New change mean homeowners could save almost £290 a year

The average two-year fixed mortgage rate has fallenRory Poulter14:38, 13 Jul 2026Homebuyers could save almost £290 a year on a typical mortgage after lenders cut fixed-rate deals at a very fast pace.‌The latest reductions mean someone borrowing £250,000 over 25 years on a repayment mortgage would pay around £24 less each month after the average two-year fixed rate fell from 5.68% to 5.52%. Over a year, that amounts to a saving of around £288. The easing in borrowing costs follows a wave of mortgage rate cuts across July, with lenders responding to lower swap rates that underpin the pricing of fixed-rate home loans.‌Fresh analysis from Moneyfacts shows the average two-year fixed mortgage dropped by 0.16 percentage points during the month, while the average five-year fixed deal fell by 0.11