Rightmove comment & mortgage rates ahead of Spring Budget tomorrow
Matt Smith, Rightmove’s mortgage expert said: “The relative stability of the mortgage market at the start of this year appears to have helped give more movers confidence. However, ahead of the Spring Budget tomorrow, demand has been slowest to pick up in the typical first-time buyer homes sector. After demonstrating resilience and determination last year, the early signs are that first-time buyers are most in need of some additional support, as mortgage rates have fluctuated over the last few weeks, and prices remain near record levels.
“Whilst we felt the 99% mortgage scheme idea would have only been able to help a very limited number of future first-time buyers, it could have played a role as part of a broader set of considered measures. Even if there is limited news in the Budget tomorrow, we hope that government listen to the growing number of voices calling for a broader review of current regulation, in the context of broader innovation in the market that are all intended to help support First-Time Buyers get on to the ladder.”
Headlines
- The average 5-year fixed mortgage rate is now 4.82%, up from 4.58% a year ago
- The average 2-year fixed mortgage rate is now 5.19%, up from 4.95% a year ago
- The average 85% LTV 5-year fixed mortgage rate is now 4.75%, up from 4.62% a year ago
- The average 60% LTV 5-year fixed mortgage rate is now 4.33%, up from 4.22% 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 £1,089 per month, up from £1,068 per month a year ago
Latest rates data
| LTV
(loan to value) |
Term
|
Average rate 5th March 2024 | Lowest rate 5th March 2024 | Average rate
a year ago |
|
95%
|
2 year fixed | 5.80% | 5.20% | 5.58% |
|
95%
|
5 year fixed | 5.40% | 4.99% | 5.11% |
|
90%
|
2 year fixed | 5.38% | 4.99% | 5.30% |
|
90%
|
5 year fixed | 4.94% | 4.58% | 4.83% |
|
LTV (loan to value) |
Term |
Average rate 5th March 2024 | Lowest rate 5th March 2024 | Average rate
a year ago |
|
85%
|
2 year fixed | 5.18% | 4.79% | 4.99% |
|
85%
|
5 year fixed
|
4.75% | 4.32% | 4.62% |
|
75%
|
2 year fixed |
5.04% | 4.59% | 4.74% |
|
75%
|
5 year fixed
|
4.72% | 4.29% | 4.34% |
|
60%
|
2 year fixed
|
4.65% | 4.46% | 4.60% |
|
60%
|
5 year fixed |
4.33% | 4.13% | 4.22% |
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 £224,815, for someone taking out an average five-year fixed, 85% LTV mortgage, is now £1,089 per month if repaying over 25 years, compared with £1,068 per month a year ago.
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