The mortgage mistake thousands are trying to avoid this summer as applications surge 42%

One of the most common questions I’m asked as a mortgage broker, and I get asked a lot, is whether now is the right time to take out a fixed rate deal.

Since the Spring, that question has come up a lot. And when you look at the current deals on the market, my advice has generally been consistent: opt for a fixed deal.

As we move through the summer, that advice hasn’t changed.

Why? Because right now, the UK fixed-rate mortgage market is seeing increased competition and falling rates.

Many lenders are offering sub-four per cent deals, particularly on two- and five-year fixed terms.

This trend is likely driven by expectations of a Bank of England base rate cut in August, along with a broader decline in swap rates.

Lenders such as HSBC, Halifax, Nationwide, and TSB have responded by aggressively lowering their fixed-rate products.

Despite a slight rise in inflation last month, overall market sentiment remains positive. Many experts, including myself, are urging borrowers, especially those coming to the end of their current deal, to lock in today’s rates while they remain competitive.

With the gap narrowing between short- and long-term fixed rates, I’m seeing more borrowers opt for five-year fixes to secure medium-term stability ahead of potential market shifts. It’s a wise move.

Sam’s market snapshot:
The Best Mortgage Rates for First-Time Buyers and Home Movers – July 2025*
2-year fixed:
 Santander – 3.79 per cent (lowest known 2-year fixed deal, 90 per cent LTV)
 HSBC – 3.82 per cent (standard 2-year fixed for 90 per cent LTV)
 Market average low – 3.69 per cent (lowest 2-year fixed rate recorded at 90 per cent LTV, according to Rightmove–Podium data)
 
 5-year fixed:
 HSBC – 3.86 per cent
 Market average low – 3.84 per cent (lowest 5-year fixed rate at 90 per cent LTV, Rightmove–Podium)
 Santander / Nationwide / Barclays – 3.87 per cent (multiple lenders offering similar 5-year fixed deals)
 
 The Best Mortgage Rates for Remortgaging – July 2025*
2-year fixed:
 Lloyds Bank – 3.69 per cent (2-year fixed for remortgage)
 Nationwide – 3.81 per cent
 Halifax – 3.84 per cent
 
 5-year fixed:
 HSBC – 3.86 per cent (lowest 5-year fixed remortgage rate on the market at 90 per cent LTV, matching top deals)
 TSB – 4.09 per cent (remortgage fixed rate for 5-year term with setup fee)
 
 Information correct at time of writing: 16 July 2025. Based on a loan-to-value of 60–90 per cent. To qualify, lenders will carry out strict affordability and credit checks. Rates are subject to change. Some products may include additional fees and charges.

In today’s fluctuating environment, predictability is invaluable. A fixed rate mortgage provides that certainty, making it a smart choice for those who like to know their monthly expenses and budget accordingly.

With mortgage applications surging by 42 per cent last month, thousands of buyers are scrambling to avoud falling into the SVR trap. Falling into the SVR trap can be a costly mistake for buyers.

Here are my top four tips if you’re looking to take out a new mortgage this month:

Shop Around

Using a broker opens up access to thousands of deals, not just what your bank offers.

Avoid the SVR Trap

Stay clear of your lender’s standard variable rate, which is often significantly higher than what’s available on the market. delaying could cost you greatly.

Act Fast

Secure a rate now. If rates drop, many lenders will switch you to the lower one. If they rise, you’re protected.

Plan Ahead

Even if you’re not moving until late 2025, securing an agreement in principle now could give you a real advantage.