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 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.

“Despite the challenges posed by the unexpected news that inflation remains stubbornly high, which is impacting the underlying funding costs of fixed-rate mortgages, the resilience of lenders and their desire to compete for business has seen average rates for mortgage products continue to fall this week across most Loan-to-Value (LTV) ranges, albeit at a much slower rate.”

“Competition between lenders remains strongest in the traditional first-time-buyer loan-to-value ranges. The biggest fall is in the 90% LTV 2-year fixed rate product range, which has dropped by 0.4% this week. However, there are signs that lenders are facing increasing pricing pressures, as we’ve seen an increase in 95% LTV 5-year fixed rates. This is in part due to the relatively small number of lenders active in this space, which means that the average can be influenced by one or two lenders increasing rates.”

“Looking forward, it’s likely that we’ll see lenders continue to try to hold the line on rates as competition remains the focus while they await the next Base Rate decision on 11 May. Despite this, we could see some rate increases in the meantime.”

If you’re thinking about buying a home, you might be wondering what the current mortgage rates are in the UK.

What are the current UK mortgage interest rates?

On Tuesday 25 April 2023

Average fixed-term mortgage rates for home-buyers with 5-10% deposits

Average fixed-term mortgage rates for home-buyers with 15-25% deposits

Average fixed-term mortgage rates for home-buyers with 40% deposits

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.

Source Rightmove