What Are The Current UK Mortgage Rates?
29th November 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 and interest 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. The Base Rate is currently 5.25%, and has been held at this level since August.
Rightmove mortgage expert Matt Smith says: “Rates have continued to fall this week, with the larger lenders leading the way with the biggest reductions for borrowers. Average rates across all LTV ranges now start with a 4 or a 5: a far cry from where we were a year ago, when even those with the biggest deposits were looking at a mortgage rate considerably higher than 5%.
“Last week, we did see swap rates – the underlying cost of mortgages to lenders – drift up slightly after the government announced its upcoming taxation and spending plans, along with the Bank of England sharing its view that Base Rate would be unlikely to reduce in the short term. However, we’ve seen swap rates settle back to the levels they were at before the Autumn Statement, and we can expect rates to continue to edge down over the next week.”
The current average mortgage rate for a five-year fixed, 85% loan-to-value mortgage is 5.22%, down from 5.29% last week. The lowest rate for this type of mortgage is 4.71%.
What are the current UK mortgage interest rates?
On Tuesday 28 November 2023
Average fixed-term mortgage rates for home-buyers with 5-10% deposits
| Loan to value (LTV) | Term | Average rate 21 Nov 2023 | Average rate 28 Nov 2023 | Weekly Change |
|---|---|---|---|---|
| 95% | 2-year fixed | 6.03% | 5.96% | -0.07% |
| 95% | 5-year fixed | 5.56% | 5.50% | -0.06% |
| 90% | 2-year fixed | 5.85% | 5.79% | -0.06% |
| 90% | 5-year fixed | 5.33% | 5.29% | -0.04% |
Average fixed-term mortgage rates for home-buyers with 15-25% deposits
| Loan to value (LTV) | Term | Average rate 21 Nov 2023 | Average rate 28 Nov 2023 | Weekly Change |
|---|---|---|---|---|
| 85% | 2-year fixed | 5.77% | 5.69% | -0.08% |
| 85% | 5-year fixed | 5.29% | 5.22% | -0.07% |
| 75% | 2-year fixed | 5.50% | 5.39% | -0.11% |
| 75% | 5-year fixed | 5.12% | 5.05% | -0.07% |
Average fixed-term mortgage rates for home-buyers with 40% deposits
| Loan to value (LTV) | Term | Average rate 21 Nov 2023 | Average rate 28 Nov 2023 | Weekly Change |
|---|---|---|---|---|
| 60% | 2-year fixed | 5.07% | 4.90% | -0.17% |
| 60% | 5-year fixed | 4.69% | 4.55% | -0.14% |
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.
When could mortgage rates start to drop?
Right now, the financial markets are predicting that the Base Rate may be at its peak. It’s thought interest rates will remain flat for most of 2024, before starting to come down. And we can expect fixed-rate mortgage products to start to take on some of these reductions.
We’ve seen mortgage rates edge down slowly in recent weeks, in response to the positive inflation figures. But it’s difficult to predict when we could start to see more sizeable drops in mortgage rates, mostly because their movement is dependent on several factors. Including inflation continuing to decrease, falling swap rates, and no unexpected shocks to the economy.
Average monthly mortgage repayments by average house price
You might be wondering what this week’s average mortgage rates could mean for average monthly mortgage repayments, and how this compares to the average rates offered last week.
The current average asking price of a typical first-time buyer property* is £223,426. Based on that, the average monthly mortgage payment for a first-time buyer taking out an average five-year fixed, 85% LTV mortgage, is now £1,135 per month if repaying over 25 years, down from £1,173 a year ago.
Source: Rightmove House Price Index and Podium data
*First-time buyer homes includes all 2-bed properties and smaller that come to market (houses and flats).
