Rightmove’s weekly mortgage tracker – 20/12/23

December 20, 2023
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Matt Smith, Rightmove’s mortgage expert said: “Yet another week – the 21st in a row – of marginal percentage point drops to mortgage rates is positive news for home-movers. Swap rates have also fallen further today following the early Christmas present of the lower-than-expected fall in inflation. The downward trajectory of swap rates has also been fuelled by a third consecutive Base Rate hold, and the markets’ belief that Base Rate could be cut as early as Spring 2024.

“This may give lenders the space to make chunkier cuts to their mortgage rates in the short term. But it’s likely that lenders will wait to pass these on to borrowers until the new year, to take advantage of the seasonal jump in demand that usually happens in January.”

Headlines

 

  • Since the peak in July, the average 5 year fixed mortgage rate has reduced from 6.11%, to 5.03%, while the average 2-year rate has reduced from 6.61% to 5.44%
  • The average 5-year fixed, 85% Loan-To-Value mortgage has reduced from 6.16% at the peak in July, to 5.12% now:
    • The means that for someone taking out this type of mortgage, the monthly mortgage payment on an average home has reduced from £2,068 in July, to £1,786 now
    • For first-time buyers taking out this type of mortgage, the monthly mortgage payment on a typical first-time buyer home has reduced from £1,254 in July, to £1,106 now
  • The average 5-year fixed mortgage rate is now 5.03%, down from 5.25% a year ago
  • The average 2-year fixed mortgage rate is now 5.44%, down from 5.50% a year ago
  • The average 85% LTV 5-year fixed mortgage rate is now 5.12%, down from 5.29% a year ago
  • The average 60% LTV 5-year fixed mortgage rate is now 4.44%, down from 4.93% 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 £1,106 per month, down from £1,134 per month a year ago

 

 

Latest rates data

 

LTV

(loan to value)

  

Term

 

 Average rate 19th December 2023 Lowest rate 19th December 2023 Average rate

a year ago

 

95%

 

 2 year fixed 5.84% 5.72% 6.04%
 

95%

 

 5 year fixed 5.44% 5.24% 5.76%
 

90%

 

 2 year fixed 5.70% 5.29% 5.79%
 

90%

 

 5 year fixed 5.18% 4.79% 5.51%

 

 

 

LTV (loan to value)

  

Term

 Average rate 19th December 2023 Lowest rate 19th December 2023 Average rate

a year ago

 

85%

 

 2 year fixed  

5.57%

  

5.02%

 5.54%
 

85%

 

  

5 year fixed

 

  

5.12%

  

4.52%

 5.29%
 

75%

 

  

2 year fixed

  

5.27%

  

4.70%

 5.30%
 

75%

 

  

5 year fixed

 

 4.95% 4.34% 5.05%
 

60%

 

  

2 year fixed

 

 4.83% 4.62% 5.18%
 

60%

 

  

5 year fixed

 4.44% 4.23% 4.93%

 

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 £1,106 per month if repaying over 25 years, compared with £1,134 per month a year ago.

Rightmove

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

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