Here’s Your Best Rates for December 2025
Mortgage rates continue to fall in December 2025 as the cost of borrowing for lenders reduces, we are seeing many lenders reduce their rates and compete with each other to try and gain as much market share and hit lending targets before 2025 comes to a close.
In 2025, UK mortgage rates have been gradually easing compared with the peaks of 2023, as Bank of England (BoE) reduced its base rate and lenders began lowering their fixed-rate deals. As of November 2025, the bank rate stands at 4% having been cut several times since late 2024.
On 19th December the Monetary policy meets for the final time in 2025 with many predicting the bank of England will reduce the base rate to 3.75% in a win for homeowners.
Market leading 2-year fixed mortgages now start from 3.55% at 60% loan to value with 5-year fixed mortgages starting from 3.62%. Tracker and variable mortgages remain more sensitive to base rate changes meaning many on these types of products could see their monthly costs reduce with a base rate cut.
Overall, the trend in 2025 has been one of modest relief for mortgage seekers, though rates remain well above pandemic-era lows, and the exact deal you get still depends heavily on your deposit size, lender and creditworthiness.
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