After a period of volatility and uncertainty in the mortgage market, there are finally signs of relief. In recent weeks, mortgage rates have started to ease, with several lenders introducing sub-4% deals and the average fixed rates gently ticking down.

While rates are still higher than the historic lows we saw in 2021, the current trend is offering hope for buyers, sellers and landlords looking to make informed decisions in 2025.

At Complete Property, we keep a close eye on market changes to help our clients plan with confidence.

In this blog, we explore the current state of mortgage rates, what’s driving the change, and what it means for the property market in Devon.

What’s Happening with Mortgage Rates?

As of mid-May 2025, the average two-year fixed mortgage rate sits at 4.54%, down from 4.66% at the end of February. The five-year fixed rate is now 4.32%, compared with 4.39% just a few months ago.

These may seem like small shifts, but they mark an important turning point. Over the past 18 months, rising rates – driven by inflation and repeated hikes to the Bank of England’s base rate – have been a source of anxiety for homebuyers, homeowners, and landlords alike. Now, the tide appears to be turning.

Sub-4% mortgage deals are beginning to reappear, particularly for those with larger deposits or strong credit profiles. Lenders are becoming more competitive again, trimming rates as expectations build for further cuts to the Bank Rate throughout 2025.

Why Are Rates Falling Now?

There are several reasons behind the recent dip in mortgage rates:

  • The Bank of England cut the base rate to 4.25% this month, its first reduction since inflation spiked in 2022. This follows a hold in March and signals a softening of monetary policy.
  • The International Monetary Fund (IMF) now predicts three rate cuts in the UK this year, up from two in its earlier forecast. This has influenced lender confidence and pricing strategies.
  • Broader global economic trends, such as shifting US tariffs and trade policy, are affecting global sentiment and reducing pressure on long-term interest rates.

Although inflation remains above target, these movements suggest cautious optimism and a gradual return to a more stable borrowing environment.

What Does This Mean for Buyers?

For first-time buyers or those looking to move, the easing of mortgage rates is a welcome development.

Lower monthly payments improve affordability, especially for those taking out shorter-term fixed deals. For example, a buyer taking out a £200,000 mortgage over 25 years could save around £60 a month by securing a 4.3% deal instead of a 4.7% one.

That may not sound dramatic, but when combined with slightly lower property prices in some areas and the possibility of further rate cuts, it’s helping to rebuild buyer confidence.

At Complete Property, we’re seeing a renewed interest from buyers across Devon – particularly those who had previously paused their search while waiting for more stability in the mortgage market.

What About Sellers?

For homeowners looking to sell, this shift is equally encouraging.

One of the biggest factors affecting the property market over the past year has been hesitancy – buyers unsure whether to commit, and sellers unsure whether now is the right time. As mortgage rates begin to ease, more buyers are returning to the market, which in turn is starting to boost demand and support prices.

If you’re thinking about selling in 2025, now could be an excellent time to get your property ready and on the market. With interest rates falling, there’s every chance we’ll see a busier spring and summer market than we did in 2024.

Our team at Complete Property can help you take advantage of this window of opportunity by offering honest advice, realistic valuations and a tailored marketing strategy that puts your home in front of the right buyers.

How Are Landlords Affected?

For landlords, the picture is a little more complex.

On one hand, falling mortgage rates offer relief to those remortgaging or looking to expand their portfolio. The cost of borrowing has been a major barrier for landlords over the past year, especially with the added pressure of new regulations like the Renters’ Rights Bill 2025.

However, landlords still need to be cautious. Fixed-rate mortgages remain well above the ultra-low levels seen in the late 2010s, and with higher costs and more regulation, margins are tighter than they’ve been in a long time.

At Complete Property, we work closely with landlords to assess whether now is the right time to buy, sell or remortgage. Our expert lettings team can also help you optimise your rental yield, manage compliance, and plan for future changes to EPC standards and tenancy law.

What Should You Do Next?

Whether you’re a homeowner, buyer or landlord, now is the time to:

  • Review your mortgage: especially if you’re due to remortgage in the next 6 to 12 months. You may be able to secure a better deal now than later.
  • Get a valuation: if you’re thinking of selling, an up-to-date valuation will help you understand what your property is worth in today’s market.
  • Talk to an expert: at Complete Property, we’re here to guide you through the changes with clear, honest advice tailored to your situation.

Book a Free Property Consultation

At Complete Property, we’re committed to helping you make the most of market opportunities – whether you’re buying your first home, selling a family property, or managing a growing rental portfolio.

We offer free, no-obligation property consultations and valuations to help you understand your options and make informed decisions. Simply get in touch using the form below.