What Are the Current UK Mortgage Rates?
If you're planning to buy a home, you might be curious about the current mortgage rates in the UK. Lenders frequently adjust their mortgage product rates, so we update average mortgage rates weekly and track changes from the previous week. You can also review rates across various Loan to Value (LTV) percentages.
What’s the Latest on Mortgage and Interest Rates?
There's been a lot of news around changes in the Base Rate and how they influence mortgage rates. The Bank of England (BoE) meets roughly every six weeks to decide whether to adjust the Base Rate, keep it steady, or reduce it. On 19 September, the Base Rate remained at 5% following a cut in August—the first reduction in over four years. This decision came after inflation dropped to the Bank of England's 2% target in May, a first since 2021, and it has since fallen to 1.7%.
As of now, the average mortgage rate for a five-year fixed rate mortgage is 4.64%, slightly up from 4.61% last week. For a two-year fixed rate mortgage, the average rate is 4.94%, compared to 4.91% a week ago. The lowest available two-year fixed rate is currently 3.94%, while the lowest five-year fixed rate stands at 3.77%.
Current UK Mortgage Interest Rates (24 October 2024)
Below are the latest average fixed-term mortgage rates for homebuyers with varying deposit percentages:
Homebuyers with 5-10% Deposits
| LTV | Term | Average Rate (17 Oct 2024) | Average Rate (24 Oct 2024) | Weekly Change |
|---|---|---|---|---|
| 95% | 2-year fixed | 5.55% | 5.52% | -0.03% |
| 95% | 5-year fixed | 5.18% | 5.19% | +0.01% |
| 90% | 2-year fixed | 5.32% | 5.34% | +0.02% |
| 90% | 5-year fixed | 4.86% | 4.89% | +0.03% |
Homebuyers with 15-25% Deposits
| LTV | Term | Average Rate (17 Oct 2024) | Average Rate (24 Oct 2024) | Weekly Change |
|---|---|---|---|---|
| 85% | 2-year fixed | 4.92% | 4.95% | +0.03% |
| 85% | 5-year fixed | 4.62% | 4.65% | +0.03% |
| 75% | 2-year fixed | 4.67% | 4.71% | +0.04% |
| 75% | 5-year fixed | 4.42% | 4.45% | +0.03% |
Homebuyers with 40% Deposits
| LTV | Term | Average Rate (17 Oct 2024) | Average Rate (24 Oct 2024) | Weekly Change |
|---|---|---|---|---|
| 60% | 2-year fixed | 4.19% | 4.24% | +0.05% |
| 60% | 5-year fixed | 4.01% | 4.05% | +0.04% |
These rates are sourced from Podium and cover about 95% of the mortgage market. All rates are based on products with an approximate £999 fee.
When Could Mortgage Rates Start to Fall?
There's speculation that the Base Rate might see another reduction by the end of the year. By Autumn 2025, it could potentially decrease to around 3.5%, depending on broader economic conditions. However, predicting significant declines in mortgage rates is challenging, as they rely on various factors, including inflation trends, swap rate movements, and unexpected economic events.
What Do These Mortgage Rates Mean for Monthly Payments?
You might be interested in how this week's average mortgage rates impact monthly payments, especially compared to last week's figures. The current average asking price for a typical first-time buyer property is £226,868. With an 85% LTV, five-year fixed-rate mortgage, the average monthly repayment for this type of property is now £1,088 per month over 25 years. A year ago, with an average property price of £224,263, the monthly payment was £1,167.
