Current UK Mortgages

UK Mortgage


If you’re considering buying a home in the UK, one of the most crucial aspects to explore is the current state of mortgage rates. Mortgage rates can fluctuate frequently, and understanding the prevailing rates is vital for making informed decisions about your home purchase.

In this article, we’ll delve into the latest updates on UK mortgage rates, factors influencing them, and what this means for prospective homebuyers.

 The Dynamic Nature of Mortgage Rates

Lenders regularly adjust the rates of their mortgage products, making it essential for potential buyers to stay updated with the latest changes. To help you stay informed, we provide weekly updates on average mortgage rates and compare these figures to the previous week. Additionally, we break down these rates across various loan-to-value (LTV) percentages to give you a comprehensive perspective.

Recent Developments in Mortgage Rates

The Bank of England (BoE) plays a significant role in influencing mortgage rates through its Base Rate decisions. The BoE meets approximately every six weeks to determine whether the Base Rate should rise, fall, or remain steady. In its latest announcement on September 21, the BoE revealed that the Base Rate would remain at 5.25%, unchanged from August.

There was considerable speculation regarding rising inflation this month, primarily driven by recent increases in fuel prices. However, contrary to expectations, inflation actually decreased by 0.1%, settling at 6.7%.

Mortgage expert, Matt Smith, offers insights into the impact of these developments: “Today’s surprisingly positive inflation news will likely give the Bank of England more confidence heading into tomorrow’s Base Rate decision. While markets predict and have priced in a 0.25% rise, which is still tomorrow’s most likely outcome, further rises beyond this are now a lot less likely following the fall in annual inflation. These figures arrive against a backdrop of falling mortgage rates, which have now dropped for an 8th consecutive week.”

Matt Smith also notes that lenders have responded to reductions in swap rates with rate cuts, intensifying competition and accelerating the pace of rate reductions. It’s expected that lenders’ confidence will continue to grow in the coming weeks, potentially resulting in further downward movement of mortgage rates.

As of now, the average mortgage rate for a five-year fixed mortgage with an 85% loan-to-value ratio stands at 5.69%, down from 5.73% the previous week. The lowest available rate for this type of mortgage is 5.24%.

Current UK Mortgage Interest Rates

Here’s a breakdown of average fixed-term mortgage rates for homebuyers with various deposit percentages:

For Homebuyers with 5-10% Deposits:

– 95% LTV, 2-year fixed: 6.55% (down 0.05% from the previous week)

– 95% LTV, 5-year fixed: 5.97% (unchanged from the previous week)

– 90% LTV, 2-year fixed: 6.39% (down 0.07% from the previous week)

– 90% LTV, 5-year fixed: 5.82% (down 0.02% from the previous week)

For Homebuyers with 15-25% Deposits:

– 85% LTV, 2-year fixed: 6.24% (down 0.05% from the previous week)

– 85% LTV, 5-year fixed: 5.69% (down 0.04% from the previous week)

– 75% LTV, 2-year fixed: 5.97% (down 0.11% from the previous week)

– 75% LTV, 5-year fixed: 5.45% (down 0.06% from the previous week)

For Homebuyers with 40% Deposits:

– 60% LTV, 2-year fixed: 5.82% (down 0.10% from the previous week)

– 60% LTV, 5-year fixed: 5.26% (down 0.05% from the previous week)

These rates are provided by Podium and represent an average based on 95% of the mortgage market. All rates considered here are associated with products featuring a typical fee of £999.

The Future of Mortgage Rates

Currently, financial markets are predicting that the Base Rate may reach a peak of 5.5%. It is anticipated that interest rates will remain relatively stable for most of 2024 before starting to decline. Consequently, fixed-rate mortgage products are expected to incorporate these rate reductions gradually.

While we’ve observed a gradual decline in mortgage rates in recent weeks, predicting substantial drops remains challenging. The trajectory of mortgage rates depends on multiple factors, including the continued decrease in inflation, falling swap rates, and the absence of unexpected economic shocks.

Monthly Mortgage Payments and Affordability

Understanding the implications of these mortgage rates on your monthly payments is essential. Based on the current average asking price of a typical first-time buyer property (£225,244), a first-time buyer opting for an average five-year fixed mortgage with an 85% LTV can expect to pay approximately £1,198 per month over a 25-year repayment period.

Monthly Mortgage Payments and Affordability

The amount you can borrow with a mortgage is determined by an affordability assessment, and your interest rate is influenced by the deposit you provide, known as the loan-to-value (LTV) ratio. Higher deposits result in lower LTV ratios and can lead to more favourable interest rates.

To estimate how much you could borrow, consider using a mortgage calculator or applying for a Mortgage in Principle. This will bring you one step closer to obtaining a mortgage offer tailored to your financial situation.

In conclusion, staying informed about the current UK mortgage rates is vital for anyone considering buying a home. While rates are influenced by various factors, including Base Rate decisions and economic trends, they have been showing a downward trend in recent weeks. However, predicting future rate movements remains challenging, making it crucial to consult with mortgage experts and use online tools to assess your affordability and borrowing potential.


If you’re considering taking the exciting step of homeownership in the UK, it’s crucial to stay informed about the ever-changing mortgage landscape. At Michael Anthony, we understand the significance of this decision and the importance of securing the right mortgage to suit your needs. Our experienced team of estate agents is here to guide you through the home-buying journey, from finding the perfect property to navigating the intricacies of the mortgage market.

With our in-depth knowledge of the local property market and a commitment to exceptional customer service, Michael Anthony is your trusted partner in achieving your homeownership dreams. Contact us today to embark on your path to homeownership, where your comfort and satisfaction are our top priorities.