Rightmove reaction to Bank of England Base Rate hold
Matt Smith, Rightmove’s mortgage expert said: “As painful as rate rises have been for many people, there are increasing signs that Base Rate rises are having a real impact on the economy, and inflation is heading in the right direction. Another hold in the Base Rate today also shows that the Bank will also be cautious not to overshoot Base Rate rises, and will be keen to maintain the current stability.
“The market appears more robust than last year, evidenced by the fact that the surprise uptick in inflation a couple of weeks ago didn’t derail the downward trend of mortgage rates. The big picture remains the same – the Base Rate is unlikely to rise further, and mortgage rates have some room to come down further before settling.
“It’s been a promising start to the year for housing market activity, with more people than this time last year listing their home for sale, looking to buy, or getting a Mortgage in Principle to see what they can afford. For anyone thinking of moving but still holding back from taking action, the slight uptick in average rates in some lower Loan-To-Value brackets this week is a reminder that average rates won’t fall forever and mortgage rates appear to be settling after significant drops at the start of January.”
Latest rates data
- The average 5-year fixed mortgage rate is now 4.65%, down from 4.81% a year ago
- The average 2-year fixed mortgage rate is now 4.99%, down from 5.13% a year ago
| LTV
(loan to value) |
Term
|
Average rate 1st February 2024 | Minimum rate 1st February 2024 | Average rate
a year ago |
|
95%
|
2 year fixed | 5.64 | 5.20 | 5.72 |
|
95%
|
5 year fixed | 5.23 | 4.80 | 5.33 |
|
90%
|
2 year fixed | 5.24 | 4.86 | 5.54 |
|
90%
|
5 year fixed | 4.79 | 4.43 | 5.07 |
|
LTV (loan to value) |
Term |
Average rate 1st February 2024 | Minimum rate 1st February 2024 | Average rate
a year ago |
|
85%
|
2 year fixed | 4.96 | 4.53 | 5.14 |
|
85%
|
5 year fixed
|
4.58 | 4.13 | 4.82 |
|
75%
|
2 year fixed |
4.77 | 4.25 | 4.91 |
|
75%
|
5 year fixed
|
4.53 | 4.03 | 4.57 |
|
60%
|
2 year fixed
|
4.40 | 4.17 | 4.76 |
|
60%
|
5 year fixed |
4.10 | 3.88 | 4.44 |
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 £222,473, for someone taking out an average five-year fixed, 85% LTV mortgage, is now £1,060 per month if repaying over 25 years, compared with £1,086 per month a year ago.
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