Current Mortgage Rates

If you're eyeing homeownership in the UK, understanding current mortgage rates is crucial. Lenders tweak rates often, so we’ll keep you updating you, comparing changes from the previous weeks..

Current Scenario: Recent talks about Base Rate hikes and their impact on mortgage rates have stirred interest. The Bank of England (BoE) meets every six weeks to discuss whether the Base Rate should rise, fall, or stay put. Currently, the Base Rate remains steady at 5.25% since August.

Current Average Rates: As of now, the average rate for a five-year fixed-rate mortgage is 4.89%, slightly up from last week's 4.84%. For a two-year fixed-rate mortgage, it's 5.29%, compared to 5.23% last week. The lowest available rates stand at 4.13% for five-year fixed and 4.46% for two-year fixed, unchanged from last week.

Detailed Breakdown: Let's delve deeper into the figures based on different deposit percentages:

For Homebuyers with 5-10% Deposits:

For Homebuyers with 15-25% Deposits:

For Homebuyers with 40% Deposits:

Future Outlook: Market projections hint that the Base Rate may have peaked. Forecasts suggest that rates will likely remain stable into 2024 before potentially declining. However, predicting significant drops in mortgage rates is challenging, given the myriad of influencing factors such as inflation and economic stability.

Implications on Monthly Payments: Considering the current average asking price of a typical first-time buyer property (£227,110), opting for a five-year fixed, 85% LTV mortgage translates to an average monthly payment of £1,108 over 25 years.

Understanding current mortgage rates is pivotal for prospective homeowners. Armed with this information, you can make informed decisions as you navigate the mortgage market. Remember, the right mortgage is not just about rates but also about suitability and affordability for you.

Sourced from Rightmove House Price Index and Podium Data