Average two-year fixed mortgage rates edged down to 5.96%, while five-year fixes remained broadly steady just below 6%, according to Moneyfacts. Alongside reported rate reductions from NatWest and HSBC, the picture is one of renewed lender competition rather than a decisive fall in borrowing costs.
For advisers, the priority is to distinguish headline repricing from a sustained affordability improvement. AI-enabled client-review workflows can flag borrowers nearing product expiry, compare revised lender criteria and identify cases where a prompt remortgage review may be appropriate. Recommendations must still reflect the client’s circumstances, fees, incentives, flexibility and risk appetite—not simply the lowest initial rate.