November 2024 | Mortgage Rates in the UK

What Are the Current UK Mortgage Rates?

If you’re considering buying a home, understanding the current mortgage rates in the UK is key to making informed decisions. Mortgage lenders frequently adjust their rates, so it’s important to stay updated.

What’s Happening with Mortgage and Interest Rates?

The Bank of England plays a pivotal role in determining interest rates through its Base Rate decisions, which occur roughly every six weeks. These decisions influence mortgage rates. On 7 November, the BoE reduced the Base Rate to 4.75%, down from 5%, where it had been since August. However, inflation exceeded the BoE’s target of 2% in October, rising to 2.3%.

Average Rates for 2-Year and 5-Year Fixed-Rate Mortgages

Term	Average Rate	Weekly Change	Yearly Change
2-year fixed	5.06%	-0.01%	-0.38%
5-year fixed	4.82%	-0.01%	-0.22%

Lowest Rates for 2-Year and 5-Year Fixed-Rate Mortgages

Term	Lowest Rate	Weekly Change	Yearly Change
2-year fixed	4.21%	-0.01%	-0.41%
5-year fixed	4.07%	-0.03%	-0.16%

These rates are sourced from Podium, covering 95% of the mortgage market. Rates reflect products with fees around £999.

Mortgage Interest Rates by Loan-to-Value (LTV)
Homebuyers with 5-10% Deposits

LTV	Term	10 Dec 2024 Avg Rate	17 Dec 2024 Avg Rate	Weekly Change	Yearly Change
95%	2-year fixed	5.73%	5.72%	-0.01%	-0.12%
95%	5-year fixed	5.32%	5.31%	-0.01%	-0.13%
90%	2-year fixed	5.48%	5.47%	-0.01%	-0.23%
90%	5-year fixed	5.06%	5.05%	-0.01%	-0.13%

 

Homebuyers with 15-25% Deposits

LTV	Term	10 Dec 2024 Avg Rate	17 Dec 2024 Avg Rate	Weekly Change	Yearly Change
85%	2-year fixed	5.08%	5.06%	-0.02%	-0.51%
85%	5-year fixed	4.85%	4.85%	0.00%	-0.27%
75%	2-year fixed	4.86%	4.84%	-0.02%	-0.43%
75%	5-year fixed	4.70%	4.69%	-0.01%	-0.26%

 

Homebuyers with 40% Deposits

LTV	Term	10 Dec 2024 Avg Rate	17 Dec 2024 Avg Rate	Weekly Change	Yearly Change
60%	2-year fixed	4.37%	4.35%	-0.02%	-0.48%
60%	5-year fixed	4.25%	4.23%	-0.02%	-0.21%

When Could Mortgage Rates Drop?

Experts anticipate the Base Rate will remain at 4.75% in December, with further reductions expected in 2025. By Autumn 2025, the Base Rate could decline to around 4%, contingent on broader economic conditions.

However, substantial decreases in mortgage rates remain uncertain. Factors like inflation, swap rate trends, and economic stability will influence future movements.

How Much Could You Pay Monthly?

Based on this week’s rates:

• The average asking price for a first-time buyer property is £225,340.
• For a 5-year fixed, 85% LTV mortgage, monthly repayments over 25 years average £1,104.

A year ago, the same mortgage cost £1,138 monthly, reflecting the lower average property price of £223,426 at the time.

Source: Rightmove House Price Index and Podium data

How Much Can You Borrow?

The amount you can borrow depends on your affordability assessment, deposit size (LTV), and the interest rate offered. A Mortgage Calculator can help estimate this, and applying for a Mortgage in Principle provides a clearer picture of what’s possible.

The bigger your deposit, the lower your LTV—and often, the more favourable your interest rate!

Be sure to consult an independent financial advisor to explore the best rates and mortgage products available. If you need assistance finding the right lender, our advisors are here to help!