What are the current UK mortgage rates?
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 was held at 5% on 19 September, after being cut in August for the first time in more than four years. This follows inflation falling to the Bank of England’s 2% target for the first time since 2021 in May, although it has since ticked up to 2.2%. Â
The current average mortgage rate for a five-year fixed rate mortgage is 4.61%, up from 4.54% last week. The current average rate for a two-year fixed rate mortgage is 4.91%, up from 4.88% last week.Â
The lowest available two-year fixed rate is 3.87% and the lowest available 5-year fixed rate mortgage is now 3.75%.
What are the current UK mortgage interest rates?
On Wednesday 16th October 2024
Average fixed-term mortgage rates for home-buyers with 5-10% deposits
| Loan to value (LTV) | Term | Average rate 9 Oct 2024 | Average rate 16 Oct 2024 | Weekly Change |
|---|---|---|---|---|
| 95% | 2-year fixed | 5.52% | 5.50% | -0.02% |
| 95% | 5-year fixed | 5.19% | 5.18% | -0.01% |
| 90% | 2-year fixed | 5.31% | 5.32% | +0.01% |
| 90% | 5-year fixed | 4.83% | 4.86% | +0.03% |
Average fixed-term mortgage rates for home-buyers with 15-25% deposits
| Loan to value (LTV) | Term | Average rate 9 Oct 2024 | Average rate 16 Oct 2024 | Weekly Change |
|---|---|---|---|---|
| 85% | 2-year fixed | 4.90% | 4.92% | +0.02% |
| 85% | 5-year fixed | 4.57% | 4.62% | +0.05% |
| 75% | 2-year fixed | 4.64% | 4.67% | +0.03% |
| 75% | 5-year fixed | 4.35% | 4.42% | +0.07% |
Average fixed-term mortgage rates for home-buyers with 40% deposits
| Loan to value (LTV) | Term | Average rate 9 Oct 2024 | Average rate 16 Oct 2024 | Weekly Change |
|---|---|---|---|---|
| 60% | 2-year fixed | 4.10% | 4.19% | +0.09% |
| 60% | 5-year fixed | 3.88% | 4.01% | +0.13% |
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?
A further cut to Base Rate has been forecasted by the end of the year. And by Autumn 2025, it could fall to about 3.5%, although this depends on what’s happening in the wider economy.
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 what happens with inflation, falling swap rates, and no unexpected shocks to the economy. Â
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.Â
The current average asking price of a typical first-time buyer property* is £227,570. For someone taking out an average five-year fixed, 85% LTV mortgage, the average monthly mortgage repayment on this type of home is now £1,086 per month if repaying over 25 years, compared with £1,168 per month a year ago (when the average first-time buyer property asking price was £225,244).Â
Source: Rightmove House Price Index and Podium dataÂ
*First-time buyer homes includes all 2-bed properties and smaller that come to market (houses and flats).
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.
The header image for this article was provided courtesy of First Choice Move, Lillyhall
Please note: 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. Â
