Rightmove’s weekly mortgage tracker 04/07/23
Rightmove’s mortgage expert Matt Smith says: “Average mortgage rates have continued to increase this week as anticipated, as the market continues to re-adjust its expectations around where the Base Rate will end up. The pace of rate increases is slowing – however, the market is still in a position where any further bad news is likely to see rates increase further.
“It’s important for home-buyers to remember that average mortgage rates are an indication of trends and helpful for showing the trajectory. However, if they are eligible, most buyers are likely to seek the lowest rate possible and there will be lower rates available than the average.
“For example, the current average mortgage rate for a five-year fixed, 85% Loan-to-Value mortgage is 5.65%, whereas the lowest rate for this type of mortgage is 5.24%. Both of these products require a circa £999 fee, which is what a home-buyer may typically choose in order to lower their monthly repayments.
“These average rates are from lenders that make up 95% of mortgage lending in the UK and excludes some specialist lenders that often have higher rates as they offer niche products. If you include these specialist lenders and only look at the £0 fee option, the average rate jumps up to 6.13% for an average five-year mortgage product.
“This demonstrates that in the current market it’s important that those thinking of taking out a mortgage speak to a mortgage broker who can help them choose the best deal for their individual circumstances.”
The top table tracks 85% and 60% LTV for a 5 year fixed-rate mortgage so you can quickly see the trend at a glance. Further LTVs for 2 and 5 year fixed rates are in the tables that follow. All rates are based on products with a circa £999 fee. Rightmove can now provide mortgage rates across all LTVs for 95% of the mortgage market to exclude specialist lending.
| LTV
(loan to value) |
Term
|
Average rate
27th June 2023 |
Average rate
4th July 2023 |
Weekly Change | Lowest rate
4th July 2023 |
Average rate
a year ago |
|
85%
|
5 year fixed | 5.50% | 5.65% | +0.15% | 5.24% | 3.49% |
|
60%
|
5 year fixed | 5.26% | 5.41% | +0.15% | 5.25% | 3.31% |
- The average monthly mortgage payment on a first-time buyer type property for someone taking out a five-year fixed, 85% LTV mortgage is now £1,199, up by £17 per month compared to last week
- The average monthly mortgage payment on a first-time buyer type property for someone taking out a five-year fixed, 60% LTV mortgage is now £827 up by £12 per month compared to last week
*The average asking price for a first-time buyer type property (2 bedrooms and fewer properties) is now £226,412
| LTV (loan to value) |
Term
|
Average rate
27th June 2023 |
Average rate
4th July 2023 |
Weekly Change | Lowest rate
4th July 2023 |
Average rate
a year ago |
|
95%
|
2 year fixed | 6.62% | 6.50% | -0.12% | 5.73% | 3.83% |
|
95%
|
5 year fixed | 5.87% | 6.00% | +0.13% | 5.48% | 3.88% |
|
90%
|
2 year fixed | 6.09% | 6.22% | +0.13% | 5.84% | 3.50% |
|
90%
|
5 year fixed | 5.67% | 5.80% | +0.13% | 5.44% | 3.59% |
|
LTV (loan to value) |
Term |
Average rate
27th June 2023 |
Average rate
4th July 2023 |
Weekly Change | Lowest rate
4th July 2023 |
Average rate
a year ago |
|
85%
|
2 year fixed |
5.93% |
6.06% |
+0.13% | 5.69% |
3.43% |
|
85%
|
5 year fixed
|
5.50% |
5.65% |
+0.15% | 5.24% |
3.49% |
|
75%
|
2 year fixed |
5.77% |
5.94% |
+0.17% | 5.59% |
3.30% |
|
75%
|
5 year fixed
|
5.36% |
5.53% |
+0.17% | 5.19% |
3.38% |
|
60%
|
2 year fixed
|
5.67% |
5.81% |
+0.14% | 5.69% |
3.28% |
|
60%
|
5 year fixed |
5.26% |
5.41% |
+0.15% | 5.25% |
3.31% |
Average mortgage rates to be credited to Rightmove. The data is provided by specialist mortgage technology provider Podium Solutions. The data covers 95% of mortgage lending, to exclude specialist lenders. All rates are based on products with a circa £999 fee. If you would like further data on different LTVs or fixed terms, please contact us.
You May Also Enjoy
Three major cities buck commuter belt trend
One feature that can see homebuyers bag a bargain
Property expert reveals six easily avoidable house-buying errors
Renovating Rental Properties: How to Reduce Costs, Attract the Best Tenants, and Increase Profits Without Unnecessary Investment
Are landlord repossessions set to spike ahead of RRA?
