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Mortgage costs decrease despite Bank of England rate freeze – Property Investor Today

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3 months ago

October 2, 2024

Admin

Mortgage costs decrease despite Bank of England rate freeze – Property Investor Today

There’s been a significant decrease in average mortgage rates over the past month according to USwitch.

The average wto-year fixed-rate mortgage (75% LTV) from the big six lenders has decreased to 4.57%, down from 4.68% last month. This is a change of 0.09%.

The five-year fixed-rate mortgage (75% LTV) has also seen a reduction to 4.09%, down from 4.24%. This is an even bigger reduction of 0.15%.

When analysing the lowest mortgage rates, the average 2-year fixed-rate mortgage (75% LTV) across all lenders fell by 0.26%, now at 4.09%.

Buy-to-let mortgage rates have improved, with the average rate across all lenders decreasing by 0.15% down to 5.29%.

USwitch says the continued downward trend in mortgage rates is encouraging news for prospective homebuyers and those looking to remortgage. These reductions could translate to significant savings over the life of a mortgage.

Average mortgage rates today across the Big Six lenders*:

	Rates last month (1st September)	Rates today (1st October)	% change from last month
2-year fixed-rate mortgage (75% LTV)	4.68%	4.57%	-0.09%
5-year fixed-rate mortgage rate (75% LTV)	4.24%	4.09%	-0.15%
2-year variable-rate mortgage rate (75% LTV)	5.59%	5.59%	–
2-year fixed-rate mortgage (90% LTV)	5.53%	5.38%	-0.15%
Standard variable rate (SVR)	7.25%	7.25%	–

*Nationwide, Santander, HSBC, Halifax, Barclays Bank, NatWest, and Lloyds Bank.

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Lowest mortgage rates:

	Rates last month (1st September)	Rates today (1st October)	% change from last month
5-year fixed (75% LTV) across all lenders	3.94%	3.84%	-0.10%
2-year fixed (75% LTV Resi) across all lenders	4.35%	4.09%	-0.26%
2-year fixed (75% LTV Resi) across big 6 lenders	4.35%	4.09%	-0.26%
2-year variable (75% LTV Resi) across all lenders	5.24%	5.24%	–
2-year fixed (90% LTV Resi) across all lenders	5.14%	5.04%	-0.10%
2-year fixed (90% LTV Resi) across big 6 lenders	5.14%	5.04%	-0.10%

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Buy-to-let mortgage rates:

	Rates last month (1st September)	Rates today (1st October)	% change from last month
Average across all lenders	5.44%	5.29%	-0.15%
Average across big six lenders	5.14%	4.90%	-0.24%
Lowest rates across all lenders	3.29%	3.14%	-0.15%
Lowest rates across big six lenders	4.34%	4.16%	-0.18%