Mortgages: A belated Christmas present of lower rates for movers

January 3, 2024
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Matt Smith, Rightmove’s mortgage expert said: “It looks like lenders are likely to give early 2024 movers the belated Christmas present of lower mortgage rates. After the reduction in swap rates we saw before the holidays, this is now starting to filter through to mortgage rates now that the festivities are over and the working year has begun. Unless things change, the signs are positive that lenders will reduce rates further over the coming weeks. Combined with the early-year bounce in home-mover activity we’re starting to see, lenders who price more competitively can expect growing interest from those looking to take out a mortgage soon.”

Headlines

 

  • The average 5-year fixed mortgage rate is now 5.02%, down from 5.23% a year ago
  • The average 2-year fixed mortgage rate is now 5.43%, down from 5.46% a year ago
  • The average 85% LTV 5-year fixed mortgage rate is now 5.10%, down from 5.25% a year ago
  • The average 60% LTV 5-year fixed mortgage rate is now 4.44%, down from 4.92% a year ago
  • The average monthly mortgage payment on a typical first-time buyer type property when taking out an average five-year fixed, 85% LTV mortgage, is now £1,104 per month, down from £1,129 per month a year ago

 

 

Latest rates data

 

LTV

(loan to value)

  

Term

 

 Average rate 3rd January 2024 Lowest rate 3rd January 2024 Average rate

a year ago

 

95%

 

 2 year fixed 5.81% 5.59% 6.09%
 

95%

 

 5 year fixed 5.40% 5.18% 5.77%
 

90%

 

 2 year fixed 5.69% 5.29% 5.80%
 

90%

 

 5 year fixed 5.16% 4.79% 5.51%

 

 

 

LTV (loan to value)

  

Term

 Average rate 3rd January 2024 Lowest rate 3rd January 2024 Average rate

a year ago

 

85%

 

 2 year fixed  

5.55%

  

5.02%

 5.49%
 

85%

 

  

5 year fixed

 

  

5.10%

  

4.52%

 5.25%
 

75%

 

  

2 year fixed

  

5.23%

  

4.60%

 5.26%
 

75%

 

  

5 year fixed

 

 4.94% 4.34% 4.99%
 

60%

 

  

2 year fixed

 

 4.82% 4.60% 5.16%
 

60%

 

  

5 year fixed

 4.44% 4.23% 4.92%

 

Rightmove can provide average monthly mortgage payments based on the latest available asking price and mortgage rate data. For example, the average monthly mortgage payment on a first-time buyer type property which is currently £219,984, for someone taking out an average five-year fixed, 85% LTV mortgage, is now £1,104 per month if repaying over 25 years, compared with £1,129 per month a year ago.

Average mortgage rates to be credited to Rightmove.

Rightmove

UK Property news updates shared directly from Rightmove PLC - the country's leading property portal.

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