Rightmove’s weekly mortgage tracker 18/07/23
Rightmove’s mortgage expert Matt Smith says:
“Despite the rate rises we’ve seen this week, swap rates – the underlying costs of mortgages for lenders – have responded positively to the news that last week’s US inflation figures fell to a two-year low, and this has taken some pressure off lenders to increase rates further.
“Some commentators have said this may be the peak for mortgage rates, but the UK inflation data for June will be published tomorrow and will be key to what happens next with the pricing of fixed rates. The market is expecting to see inflation fall back in June, but as we’ve seen in the past couple of months, if it remains stubbornly high, and doesn’t fall in line with expectations, this could cause mortgage rates to rise further.
“The best-buy, short-term fixed-deals are still approaching 6%, which is likely to be a concern to those looking to take out a mortgage soon. Some buyers may be putting their moving plans on hold while they reassess higher costs and the impact on their budgets, and this has impacted the number of home sales agreed in June.
“But overall, demand from buyers is still 3% higher than 2019’s more normal market level. Estate agents are reporting that homes that are realistically priced are still attracting motivated buyers who don’t want to miss out on the right property that is not over-priced, and that they can still afford.”
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
11th July 2023 |
Average rate
18th July 2023 |
Weekly
Change |
Lowest rate
18th July 2023 |
Average rate
a year ago |
|
85%
|
5 year fixed | 5.69% | 5.90% | +0.21% | 5.48% | 3.58% |
|
60%
|
5 year fixed | 5.59% | 5.79% | +0.20% | 5.39% | 3.42% |
- 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 £1,224, up by £20 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 £855 up by £13 per month compared to last week
*The average asking price for a first-time buyer type property (2 bedrooms and fewer properties) is now £225,552.
| LTV
(loan to value) |
Term
|
Average rate
11th July 2023 |
Average rate
18th July 2023 |
Weekly
Change |
Lowest rate
18th July 2023 |
Average rate
a year ago |
|
95%
|
2 year fixed | 6.75% | 6.91% | +0.16% | 6.34% | 3.94% |
|
95%
|
5 year fixed | 6.10% | 6.23% | +0.13% | 5.99% | 3.97% |
|
90%
|
2 year fixed | 6.33% | 6.47% | +0.14% | 5.95% | 3.69% |
|
90%
|
5 year fixed | 5.81% | 5.95% | +0.14% | 5.58% | 3.74% |
|
LTV (loan to value) |
Term |
Average rate 11th July 2023 | Average rate
18th July 2023 |
Weekly
Change |
Lowest rate
18th July 2023 |
Average rate
a year ago |
|
85%
|
2 year fixed |
6.21% |
6.40% | +0.19% | 5.85% |
3.53% |
|
85%
|
5 year fixed
|
5.69% |
5.90% |
+0.21% | 5.48% |
3.58% |
|
75%
|
2 year fixed |
6.09% |
6.29% |
+0.20% | 5.81% |
3.48% |
|
75%
|
5 year fixed
|
5.56% |
5.79% |
+0.23% | 5.39% |
3.53% |
|
60%
|
2 year fixed
|
6.09% |
6.26% |
+0.17% | 5.81% |
3.39% |
|
60%
|
5 year fixed |
5.59% |
5.79% |
+0.20% | 5.39% |
3.42% |
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
Thames Valley Rents Surge to £1,448 – 6% Above UK Average
July’s HMRC Property Transactions Report
Almost half of homesellers hit by broken chains
Only 1 in 10 new-build homebuyers happy
One-third of tenant income in the UK goes on rent
