Oxford Mortgage Market Update – Autumn 2025 Edition

Liam Drummond
Oct 27
3 min read

As the leaves begin to fall and the property market settles into the final quarter of the year, many buyers, sellers and homeowners in Oxford are asking the same questions. What is happening in the mortgage market? Are interest rates coming down? Is now a good time to buy, sell or remortgage?

In this Autumn 2025 update, we take a local and national look at what is driving mortgage decisions across Oxford and Oxfordshire, and what it could mean for you.

Where Are Mortgage Rates in Autumn 2025?

After a turbulent 18 months of rising interest rates, the market has shown early signs of stabilising. As of mid-September 2025:

The Bank of England base rate remains at 4.00 percent
Inflation has eased to under 3.5 percent, bringing cautious optimism
Lenders are gradually lowering fixed rates, with some sub-5 percent deals returning for certain loan-to-value brackets

At Drummonds Finance Group, we are now seeing two and five year fixed rates ranging from 4.45 percent to 5.25 percent, depending on deposit size, credit profile and lender criteria. Tracker mortgages are still popular with buyers who believe rates will fall further in 2026.

What Are We Seeing on the Ground in Oxford?

Oxford’s property market has remained resilient compared to many other UK cities. Demand continues from:

First-time buyers, including Oxford University staff and NHS workers
Buy-to-let investors targeting student lets and HMOs
Families relocating from London or downsizing within Oxfordshire

However, affordability remains a challenge. The average property price in Oxford sits at around £470,000, significantly higher than the national average. Buyers are relying heavily on mortgage support, shared ownership, and family deposits to bridge the gap.

We are also seeing more clients looking to remortgage early to avoid jumping onto their lender’s standard variable rate. Product transfers remain popular, particularly for Birmingham Midshires customers who need a broker to switch deals.

Are House Prices Falling in Oxford?

According to recent data from Rightmove and Zoopla, Oxford house prices have softened by around 2 to 3 percent year on year, but this has largely been in line with national trends.

The local rental market remains firm, particularly in Headington, Cowley and Summertown, supporting buy-to-let values and keeping yields steady. Oxford remains one of the most desirable cities to live and invest in, with long-term growth potential.

What Should You Do If Your Rate Is Ending Soon?

Autumn is an ideal time to review your mortgage, especially if your current deal ends before Spring 2026. Rates are lower than they were earlier this year, and many lenders allow you to secure a new rate up to six months in advance.

At Drummonds Finance Group, we are actively helping clients lock in new fixed deals, explore flexible trackers, and assess early remortgage options with or without penalties.

If you are unsure whether to fix or wait, read our Mortgage Rate Ending Blog for a breakdown.

Help for First-Time Buyers in Oxford

We continue to support many first-time buyers in Oxford through schemes like:

Shared Ownership
Deposit Unlock
Joint borrower sole proprietor

We also work closely with clients using the Oxford University Key Worker Shared Equity Scheme. Learn more about that here.

Local Expertise Matters

Unlike online-only brokers, we live and work in Oxfordshire and understand the local property market in depth. Whether you are based in Oxford, Bicester, Banbury, Kidlington or further afield, we are here to guide you through: