Rachel Springall, Finance Expert at Moneyfactscompare.co.uk, said:

“The millions of borrowers due to remortgage this year will welcome the news that fixed mortgage rates have fallen over the past month, with the average two- and five-year fixed rates seeing their biggest marginal falls in almost six months. As lenders rushed to reprice during February, when volatility in swap rates was prevalent, it set in motion a positive sentiment across the mortgage market. This couldn’t be better timed, with borrowers rushing to meet the stamp duty deadline at the end of March 2025 or indeed those remortgaging off a cheap fixed rate. Despite consecutive falls to the average Standard Variable Rate (SVR), the incentive to switch remains as a typical mortgage borrower being charged the current average SVR of 7.68% would be paying £358 more per month, compared to a typical two-year fixed rate*.

“It is always difficult to know which way interest rates may go in the coming months; sticky inflation and wider economic uncertainty can delay more base rate cuts by the Bank of England’s Monetary Policy Committee. However, such uncertainty should not stop lenders from working hard to support their existing borrowers or indeed entice new business. Innovation and support from lenders will be integral to ensure borrowers can comfortably afford a mortgage, and first-time buyers will continue to be crucial to keep the market moving. A review into stress testing could also make a big difference to borrowers who are finding it hard to get a mortgage, and the Financial Conduct Authority (FCA) plans to launch a consultation on the matter in May. However, any significant changes to ‘stress testing’ must be implemented with care to protect consumers. It will be interesting to see if borrowers can make their homeownership dreams a reality in the coming months when affordable housing is in short supply.”

*Average standard variable rate (SVR) is currently 7.68%. Calculations based on a £250,000 mortgage over a 25-year term on a repayment basis. SVR repayment £1,876 per month, versus £1,518 per month on 5.39% two-year fixed rate.

Savings market analysis

• Average rates across easy access and notice accounts have fallen since the start of March 2024. The average easy access rate has fallen from 3.18%, the average easy access ISA rate has fallen from 3.32%. The average notice account has fallen from 4.28% and the average notice ISA rate has fallen from 4.15%.
• Since the start of February 2025, the average easy access savings rate has fallen from 2.92% to 2.85% and the average easy access ISA rate fell from 3.06% to 3.03%.
• The average notice rate is now below 4.00% for the first time since August 2023, at 3.86%, down from the start of February 2025 and the average rate on a notice ISA has fallen from 3.92% to 3.79%.

Rachel Springall, Finance Expert at Moneyfactscompare.co.uk, said:

“Savers are once again the casualties of cuts to the Bank of England base rate, with variable savings rates dropping across the board over the past month. Easy access accounts remain a popular choice due to their flexibility, but savers should still make efforts to proactively check their rate and switch. The top rates within this sector are typically offered by challenger banks, who will fight on rate pricing to entice deposits. However, there are still savers out there who fail to move their cash from accounts where loyalty does not pay, such as with the biggest high street banks. The biggest high street banks pay an average of 1.66%** across easy access accounts, far less than the current market average easy access rate across all savings providers. The brands covered by the Financial Services Compensation Scheme (FSCS) have the same protections as the high street banks, so savers should explore alternative providers that offer better value.

“It may be the season for cash ISAs, but they have sadly not been immune to rate cuts since the start of February, with providers catching up with the base rate cut. However, a dip in rates should not deter savers from taking full advantage of their ISA allowance before the 2024/25 tax-year ends. The stickiness of inflation, coupled with a freeze to income tax thresholds and tax-free savings allowances, means it’s more vital than ever for consumers to be proactive with their money and ensure they are earning a decent return. Outside of cash ISAs it’s worth noting that many consumers could find their Personal Savings Allowance (PSA) halved if they become a higher rate taxpayer, as their £1,000 interest basic rate allowance drops to £500. To avoid rushing around to grab a cash ISA before the new tax-year starts, consumers would be wise to consider all their options now, take advantage of the top deals and ensure they are protecting their hard-earned savings from tax.”

**High street banks include Bank of Scotland, Barclays Bank, Halifax, HSBC, Lloyds Bank, NatWest, Royal Bank of Scotland and Santander. Averages collected from gross interest rates paid across all live easy access accounts with these brands based on a £10,000 deposit, latest rates as at 12 March 2025.