1. Scotland-Specific Trends
- According to the Scottish Government’s Housing Market Review (Q2 2025), the average interest rate for new floating-rate mortgage advances in Scotland dropped significantly to 5.01%, down 1 percentage point from the previous period. Meanwhile, fixed-rate mortgages decreased by 0.29 percentage points, though the exact new figure wasn’t specified.
- Additionally, as of 1 April 2025, Scottish Building Society’s Standard Variable Rate (SVR) stood at a notably high 7.99%.
2. UK-Wide Averages – Important Context for Scotland
Though not Scotland-specific, UK averages give helpful context for borrowers:
- As of 27 August 2025 (very recent), the average UK two-year fixed-rate mortgage (75% LTV) is 4.74%, while the five-year fixed rate is 4.94% according to Uswitch.
- NerdWallet UK reports similar averages: 2-year fixed at 4.49%, and 5-year fixed at 4.50%, as of 14 August 2025.
3. Recent Developments & Market Momentum
- The Bank of England cut its base rate from 4.25% to 4% in early August 2025, pushing down two-year fixed rates below five-year deals—a notable market shift.
- Throughout July 2025, UK mortgage rates softened, with many fixed offers hovering just above 5%. For low-risk borrowers with strong equity, some deals dipped below 4%.
- Lenders like Barclays are now offering two- and five-year deals at 3.99% for borrowers with sizable deposits, while Coventry Building Society offers two-year fixes as low as 3.89%.
What This Means for Borrowers in Scotland
| Mortgage Type | Estimated Rate in Scotland |
| Floating-rate (e.g., tracker/SVR) | Around 5.0% (new advances) |
| Standard Variable Rate (SVR) | Around 8.0% (Scottish Building Society) |
| Fixed-rate mortgages (2–5 years) | Typically 4.5–5.0%, with top deals under 4% for strong borrowers |
Highlights:
- Floating rates in Scotland are notably better than SVRs, yet still higher than fixed offers.
- Fixed-rate mortgages offer more stability and predictability. Some borrowers, especially those with substantial equity or lower loan-to-value, can access rates below 4%.
- SVRs remain high, so staying on a variable rate is less appealing unless necessary.
Borrowing Tips for Scotland Residents
- Act quickly on fixed deals—competitive offers under 4% may not last long, according to Homebuilding.
- Lock in early, especially if your current mortgage deal is nearing its end, according to The Times.
- Consult a whole-of-market mortgage broker; they can uncover lower-rate products that may not be widely advertised.
- Remortgaging now could save you considerable money versus being moved onto an SVR, which in some cases approaches 8%.
- Tailor choices to your circumstances: shorter fixed terms (e.g., 2 years) may offer lower rates now but require future planning, whereas longer fixes (e.g., 5 years) provide longer-term stability.
Summary
The Scottish mortgage landscape in August 2025 shows encouraging signs:
- Floating-rate advances are around 5.0%, with SVRs near 8.0%—making fixed-rate options much more appealing.
- UK fixed-rate averages hover around 4.5–5.0%, with sub-4% deals available to select borrowers.
- Borrowers should consider locking in now to avoid future hikes or being pushed onto expensive variable rates.
If you’d like, I can help you craft a localised comparison tool, create downloadable content (like an infographic), or even draft email templates for your clients to educate them on remortgaging or buying in the current environment.