Average Mortgage Rates and Loans UK 2025

Average Mortgage Interest Rates

The average mortgage interest rate in early 2025 in the UK is around 5.27% for variable loans and 5.23% for fixed rate loans.

Mortgage rates vary by many factors, such as the duration of the loan or fixed period, the loan to value ratio (LTV), if the rate is fixed or variable, whether the loan is for a property that will be rented out or lived in by the owner, and more.

Regardless, mortgage rates have been persistently high for nearly two years. The chart below shows rates for 2-year fixed (green) and variable (purple) rate mortgages, across three different LTV ratios, illustrating how they've changed in the past four years. Interestingly, for the past two years the variable rates have held pretty steady, but the fixed rates have shown more variability.

Also, notice how the rates have largely converged across LTV ratios for variable rate mortgages, in particular. Banks used to charge a lot less (e.g. up to 2.5 percentage points less, three years ago) for loans with lower LTV ratios, because a smaller LTV is less risky for the lender. But now lenders are charging almost the same rate regardless of LTV ratio, especially for variable rate loans. In January 2025, there was only a 0.26% difference between a 95% LTV and 75% LTV 2-year variable rate loan (average rates of 5.38% and 5.12%, respectively).

As a result, rates are up even more for mortgages with a lower LTV ratio (that is, for people with a larger deposit). For example, the interest rate on fixed, 2-year 75% LTV loans are now 3.3X the rate from five years ago (average of 1.41% in January 2020 to 4.65% in January 2025).

Average Mortgage Loan Size

In December 2024, the average mortgage loan was up to £200,442, according to NimbleFins analysis of data from the Bank of England. This figure is the highest it's been in the past 10+ years, other than September of 2022 when the figure reached £203,389.

In the last quarter of 2024 (Oct 2024 - Dec 2024), £67,341,000,000 was lent to individuals over 335,962 properties—an average of £200,442 per loan.

Methodology & Data

NimbleFins analysed data from the Bank of England to determine average mortgage loan sizes as well as compare mortgage interest rates.

The following Bank of England data sets were used for the interest rate figures:

To determine the average mortgage size, we used two metrics to approximate the average loan:

Note, the resulting figures will not be exact, since the total lending figure does not exclusively reflect mortgages, however the vast bulk of secured lending will be for homes.