Average monthly mortgage payment down £119 year-on-year in January
Key takeaways:
- Average monthly mortgage payments were £1,592 in January – that’s £119 (7%) lower than a year ago, despite the average price of a home rising by 0.5% year-on-year in January
- The average two-year fixed mortgage rate in January was 4.23%, down from 4.99% in January 2025*
- A typical first-time buyer is looking at an average mortgage payment of £975 per month, compared to £1,062 at this time last year
The national average monthly mortgage payment was £1,592 in January 2026. That’s £119 lower (-7%) than at the same time last year according to new analysis from Rightmove**, the UK’s biggest property platform.
This drop in monthly payments in January was because of a combination of average mortgage rate drops and slower house price growth. The average two-year fixed mortgage rate was 4.23% in January, down from 4.99% in January 2025.
Meanwhile, national average asking prices were only up by 0.5% year-on-year, standing at £368,031 in January.
Average mortgage payments slightly higher than December
While buyers are looking at notable savings compared to last year due to mortgage rate drops, a big monthly increase in property prices this January means that buyers face paying a little more on a new mortgage than they would have in December.
The national average monthly mortgage payment is £35 more than it was in December 2025 when the national average asking price was £358,138.
What’s the situation for first-time buyers?
The average asking price for a typical first-time buyer home was £225,544 in January, and the average first-time buyer monthly mortgage payment was £975, down from £1,062 at this time last year.
A 20% deposit would equate to £45,109 based on January’s average asking price.
What are the regional differences?
London buyers have seen the biggest year-on-year drops in monthly mortgage payments of £207. This is because homes are more expensive in London, making proportional mortgage rate drops result in higher cash savings.
New buyers in the North East will see the least benefit from lower mortgage rates compared to purchasing last year. This is because homes are cheapest in the North East, but also because asking prices have risen faster here, with higher prices offsetting some of the savings of lower mortgage rates.
| Area | Average asking price Jan 2026 | Average monthly mortgage payment Jan 2026 | Change in average mortgage payment year-on-year |
|---|---|---|---|
| East Midlands | £280,598 | £1,214 | -£100 |
| East of England | £412,555 | £1,784 | -£149 |
| London | £679,782 | £2,940 | -£207 |
| North East | £197,264 | £853 | -£38 |
| North West | £266,463 | £1,152 | -£58 |
| Scotland | £187,139 | £809 | -£51 |
| South East | £462,319 | £2,000 | -£195 |
| South West | £369,713 | £1,599 | -£135 |
| Wales | £258,194 | £1,117 | -£109 |
| West Midlands | £291,422 | £1,260 | -£86 |
| Yorkshire and The Humber | £248,821 | £1,076 | -£71 |
What are other types of mortgage rate looking like?
Those looking to remortgage or take out a buy-to-let mortgage will see slightly different rates to those buying with a lender for the first time. The average remortgage rate in January is 4.32%, down from 5.14% last year. Meanwhile, the average buy-to-let mortgage rate is 4.84%, down from 5.51% last year.
The average remortgage rate is based on a 2-year fixed rate with a circa £999 fee, and the average buy-to-let mortgage rate is based on a 2-year fixed rate with a 25% deposit and no fee.
What else is helping the market?
Rightmove’s monthly confidence tracker measures the sentiments of home-owners, renters, prospective first-time buyers and landlords towards the market.
It shows that net confidence among buyers and sellers in January returned to its highest level since September 2025.
“We saw some headline grabbing low mortgage rates being offered by lenders at the end of 2025 and into January, which saw average rates drop to their lowest level since before the mini-Budget. Since then, rates have stabilised and even ticked up marginally in places as the cost of funding mortgages has become more expensive, due to global and domestic economic events.”
Matt Smith, Rightmove mortgage expert
*Average mortgage rate data provided by Podium.
**The analysis uses Rightmove’s daily mortgage rate data and property asking price data to calculate residential mortgage payments. Mortgage payments are based on average two-year fixed rates with a circa £999 fee and based on 95% of the mortgage market to exclude specialist lending. The calculations assume buyers have a 20% deposit and spread the cost of their mortgage over 25 years.
Please note: Your home may be repossessed if you do not keep up repayments on the mortgage. Rightmove is not authorised to give financial advice; the information and opinions provided in these articles are not intended to be financial advice and should not be relied upon when making financial decisions. Please seek advice from a regulated mortgage adviser.
