Fixed-rate deals, an autumn completion surge and a resurgence of first-time buyer activity have defined the UK mortgage market over the past year, according to new data from Mojo Mortgages.
The firm’s “Mortgages Wrapped 2025” analysis tracks customer behaviour between 1 January and 1 December 2025 and points to a market increasingly driven by rate sensitivity and a desire for payment certainty.
Fixed-rate mortgages dominated completions, accounting for 95.49% of all Mojo customers, compared with just 4.42% on tracker products.
And 2-year fixes were the preferred option, representing 56.77% of completed mortgages, with 35.78% opting for a five-year fix.
CONFIDENCE BOOST
The report highlights a clear softening in mortgage pricing as the year progressed. Among major lenders including Halifax, HSBC, Lloyds Bank, Nationwide, NatWest and Santander, the highest 2-year fixed rate reached 4.8% on 31 January, compared with a year-low of 4.1% on 1 December. 5-year fixes followed a similar trajectory, easing from a January peak of 4.5% to 4.1% by early December.
John Fraser-Tucker, Head of Mortgages at Mojo Mortgages, says: “While rates saw a high and low throughout the year, the market ended 2025 with rates softening, providing a significant boost of confidence for buyers entering the new year.
“The fact that the lowest 2-year and 5-year fixed rates from our key lenders were both recorded at a competitive 4.1% on December 1st shows just how much things have improved since the highs we saw in January.
“This softening trend is clearly what borrowers have been waiting for. The vast majority of our customers – over 95% of those completing a mortgage – chose to lock in a fixed rate, highlighting a continued desire for payment stability.”
FIRST-TIME BUYERS
First-time buyers were a major force in 2025, with Mojo reporting a 5.7% rise in activity compared with 2024. The average first-time buyer is 32.3 years old, with more than half (50.8%) aged 25–34. Average deposits reached £56,827, with an average loan size of £236,125 and terms stretching to 30.6 years, underlining affordability pressures.
Regional demand was strongest in Greater London and the North West, while houses continued to dominate buyer preferences, representing more than 85% of purchases.
Seasonality also played a clear role. Almost 35% of all completions occurred in autumn, with October the single busiest month, suggesting many buyers sought to complete before year-end.
Mojo expects competition between lenders to intensify in early 2026 as borrowers continue to hunt aggressively for the best fixed-rate deals.
