According to the latest data released by Rightmove, year on year average UK mortgage rates are down.
The property website's weekly mortgage tracker shows that:
The average 5-year fixed mortgage rate is now 5.38%, down from 6.02% a year ago.
The average 2-year fixed mortgage rate is now 5.84%, down from 6.24% a year ago.
The average 85% LTV 5-year fixed mortgage rate is now 5.48%, down from 6.01% a year ago.
The average 60% LTV 5-year fixed mortgage rate is now 4.95%, down from 5.80% 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 £1,168 per month, down from £1,232 per month a year ago.
The average monthly mortgage payment on a first-time buyer type property is currently £224,263.
Someone taking out an average five-year fixed, 85% LTV mortgage, now pays £1,168 per month, if repaying over 25 years, compared with £1,232 per month a year ago.
Ahead of next month’s General Election, Rightmove’s mortgage expert Matt Smith suggests a review of mortgage affordability criteria could help:
“There’s an opportunity to unlock greater affordability in a responsible way, which could help more first-time buyers get on the ladder. First-time buyers are already taking out longer mortgage terms and lender innovation has included the introduction of longer-term fixed rates that are likely to be part of the solution as they help by ensuring certainty of payments.”
“Various mortgage schemes have played their part and supported a number of people, and we know from our research that people would like to see new schemes introduced, but we think longer-term solutions would be more effective than short-term schemes.
Smith added: “Either way, it’s most likely that regulatory change is needed, so it’s critical that the government works with regulators and lenders from day one on any mortgage solutions, to ensure buy in and take up, which will in turn create more options for first-time buyers.”
