Springall noted that the last cuts of a comparable magnitude occurred in October 2024, when rates fell by 0.16% and 0.13% respectively. She added that while fixed rates had been inverted — with the two-year sitting above the five-year — for three consecutive months, that gap had begun to narrow. She cautioned, however, that renewed geopolitical tensions could yet slow the pace of rate reductions.
On product availability, Springall acknowledged that the recovery in choice had slowed in June, with only 45 deals added since the month’s start. She pointed instead to the broader picture: 976 products had returned since the start of May, representing around three-quarters of the 1,283 deals withdrawn in April.
She also noted that the average shelf-life of a deal had stabilised at 14 days in June, up from a record low of eight days at the start of April, and that product count at 90% LTV had exceeded 900 options for the first time since March 2026.
“Despite ongoing affordability pressures in the mortgage market, a recent study from Yorkshire Building Society revealed that 88% of UK adults felt homeownership is important,” Springall said. “Therefore, it is vital that lenders continue to create innovative products and relax criteria carefully to support first-time buyers, as they remain the lifeblood of the mortgage market.
“Buyer confidence may well remain subdued until the supply of affordable housing improves this year, but for now, mortgage costs are not expected to rapidly escalate.
