Current UK Mortgage Rates
If you’re considering purchasing a home, understanding the current mortgage rates in the UK is crucial. At Leightons Estate Agents, we aim to provide you with the latest insights to assist you in making informed decisions.
Recent Trends in Mortgage and Interest Rates
The Bank of England’s Monetary Policy Committee reduced the Bank Rate to 4.5% on 6 February 2025, the lowest level since June 2023. This decision was influenced by a slight decrease in inflation, which fell to 2.8% in February from 3% the previous month.
Average Mortgage Rates
As of 1 April 2025, the average mortgage rates are as follows:
- 2-Year Fixed-Rate Mortgages: 4.87% (a decrease of 0.01% from the previous week and 0.35% lower than the same period last year).
- 5-Year Fixed-Rate Mortgages: 4.73% (down 0.01% from last week and 0.11% lower year-on-year).
These figures are based on products with approximately a £999 fee.
Lowest Available Mortgage Rates
The most competitive rates currently available include:
- 2-Year Fixed-Rate Mortgage: 3.86% (no change from last week; 0.60% lower than last year).
- 5-Year Fixed-Rate Mortgage: 3.96% (unchanged from the previous week; 0.17% lower year-on-year).
These rates are also based on products with around a £999 fee.
Mortgage Rates by Loan-to-Value (LTV) Ratios
Mortgage rates can vary significantly depending on the size of your deposit. Here’s a breakdown of average fixed-term mortgage rates by LTV as of 1 April 2025:
- 95% LTV:
- 2-Year Fixed: 5.66% (no change from last week; 0.25% lower than last year).
- 5-Year Fixed: 5.35% (down 0.01% from last week; 0.12% lower year-on-year).
- 90% LTV:
- 2-Year Fixed: 5.17% (a decrease of 0.01% from last week; 0.29% lower than last year).
- 5-Year Fixed: 4.91% (no change from the previous week; 0.07% lower year-on-year).
- 85% LTV:
- 2-Year Fixed: 4.83% (down 0.03% from last week; 0.38% lower than last year).
- 5-Year Fixed: 4.70% (a decrease of 0.02% from last week; 0.09% lower year-on-year).
- 75% LTV:
- 2-Year Fixed: 4.62% (down 0.01% from last week; 0.42% lower than last year).
- 5-Year Fixed: 4.53% (a decrease of 0.01% from last week; 0.18% lower year-on-year).
- 60% LTV:
- 2-Year Fixed: 4.24% (down 0.01% from last week; 0.44% lower than last year).
- 5-Year Fixed: 4.21% (an increase of 0.01% from last week; 0.13% lower year-on-year).
These figures highlight the benefit of larger deposits in securing more favourable mortgage rates.
Monthly Mortgage Repayments Based on Average House Prices
Understanding how current mortgage rates translate into monthly repayments is essential. For example, with the average asking price for a typical first-time buyer property at £227,212, securing an 85% LTV mortgage with a 5-year fixed rate at 4.70% would result in monthly repayments of approximately £1,102 over a 25-year term.
Factors Influencing Mortgage Rates
Mortgage rates are influenced by various factors, including the Bank of England’s Base Rate, inflation trends, and overall economic conditions. While the recent Base Rate cut aims to stimulate economic activity, other elements like energy price increases and global economic uncertainties can impact future rate movements. Bank of England
Tips for Prospective Homebuyers
- Assess Your Financial Situation: Determine how much you can afford to borrow and repay comfortably.
- Understand LTV Ratios: A larger deposit reduces your LTV ratio, potentially qualifying you for better mortgage rates.
- Explore Mortgage Options: Compare fixed-rate and variable-rate mortgages to find the best fit for your financial goals.
- Consult Professionals: Engage with mortgage advisors and estate agents to navigate the market effectively.
At Leightons Estate Agents, we’re committed to guiding you through the complexities of the housing market. Our team is here to provide personalised advice and support as you embark on your home-buying journey.
Please note that mortgage rates and housing market conditions are subject to change. It’s advisable to consult with financial advisors and mortgage professionals for the most current information tailored to your circumstances.
Adapted From Rightmove
Thanks for reading
Michael
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