Average two-year fixed mortgage rates edged down one basis point to 5.96%, while average five-year fixes remained broadly unchanged just below 6%, according to Moneyfacts. HSBC and NatWest have also reduced selected mortgage pricing, suggesting competitive pressure is returning even though the overall rate environment remains restrictive.
For advisers, the key message is that marginal rate reductions do not remove affordability pressure. AI-driven client review tools can help identify borrowers approaching product expiry, model payments across fixed and tracker options, and prioritise cases where a small pricing move could materially improve affordability. Outputs should support—not replace—individual suitability assessments and documented advice.