What Are The Current UK Mortgage Rates?
5th April 2023
Articles
If you’re thinking about buying a home, you might be wondering what the current mortgage rates are in the UK.
Lenders change the rates of their mortgage products regularly. That’s why we update the average mortgage rates weekly and compare how they’ve changed since the previous week. You can also compare the rates across a range of loan to value (LTV) percentages.
What’s happening with mortgage rates now?
There has been lots of news about Base Rate rises and how they can impact mortgage rates. The Bank of England (BoE) meet about every six weeks to decide whether the Base Rate should go up or down, or stay the same. On 23 March, the Base Rate increased to 4.25%, from 4% in February.
Our mortgage expert Matt Smith says: “The number of lenders reducing their rates this week has gathered pace, with average rates reducing by up to 0.13%, and more lenders offering sub-4% 5-year fixed rates. This reflects lenders’ increasing confidence in the future direction of rates following the Bank of England Base Rate announcement. And, perhaps of equal importance, it’s a sign that lenders are actively competing for business from prospective home-buyers.
“As we go into the Easter break, we can expect that rates will remain flat or even creep down a little in the coming week. In part due to the bank holidays, but also as lenders take stock of the impact of recent repricing activity,” he adds.
How have mortgage rates changed?
| Loan to value (LTV) | Term | Average rate 28 Mar 2023 | Average rate 4 Apr 2023 | Weekly Change |
|---|---|---|---|---|
| 85% | 5-year fixed | 4.62% | 4.53% | -0.09% |
| 60% | 5-year fixed | 4.28% | 4.18% | -0.10% |
What are the current UK mortgage interest rates?
On Tuesday 4 April 2023
Average fixed-term mortgage rates for home-buyers with 5-10% deposits
| Loan to value (LTV) | Term | Average rate 28 Mar 2023 | Average rate 4 Apr 2023 |
|---|---|---|---|
| 95% | 2-year fixed | 5.60% | 5.62% |
| 95% | 5-year fixed | 5.19% | 5.07% |
| 90% | 2-year fixed | 5.22% | 5.18% |
| 90% | 5-year fixed | 4.84% | 4.78% |
Average fixed-term mortgage rates for home-buyers with 15-25% deposits
| Loan to value (LTV) | Term | Average rate 28 Mar 2023 | Average rate 4 Apr 2023 |
|---|---|---|---|
| 85% | 2-year fixed | 4.99% | 4.91% |
| 85% | 5-year fixed | 4.62% | 4.53% |
| 75% | 2-year fixed | 4.71% | 4.65% |
| 75% | 5-year fixed | 4.35% | 4.32% |
Average fixed-term mortgage rates for home-buyers with 40% deposits
| Loan to value (LTV) | Term | Average rate 28 Mar 2023 | Average rate 4 Apr 2023 |
|---|---|---|---|
| 60% | 2-year fixed | 4.65% | 4.52% |
| 60% | 5-year fixed | 4.28% | 4.18% |
These rates are provided by Podium and are an average based on 95% of the mortgage market. All rates are based on products with a circa £999 fee.
How much can you borrow with a mortgage?
The amount you can borrow with a mortgage is determined by an affordability assessment and your interest rate is determined by the amount of deposit you have, otherwise known as loan-to-value (LTV).
LTV is expressed as a percentage, and it reflects the size of the mortgage you need as a proportion of the value of the home you want to buy. The bigger the deposit you have, the lower the LTV, and vice-versa.
A good way to find out how much you could borrow is to use a mortgage calculator. And to get a personalised result by applying for a Mortgage in Principle which will take you one step closer to a mortgage offer.
Read more about the different types of mortgages and how to choose a mortgage term that meets your needs, both now and in the future.
