The market has remained relatively calm since the Base Rate increase, and those looking to take out a mortgage soon will be hoping this period of stability continues for as long as possible.
This is according to Rightmove’s mortgage expert Matt Smith who adds: As expected, despite the base rate rise, fixed-rate mortgage deals have continued to tentatively trend downwards and based on the latest swap rates, are likely to continue to do so slowly, barring any market surprises.
“A settled market provides more confidence and certainty and next week’s inflation data will be key to setting the tone for the following weeks. If some positive news means confidence can continue to build, lenders may feel they can get more competitive with their rates to attract the many motivated buyers still in the market to move.”
Despite the calming market on a year-on-year basis the figures show just how much borrowers have felt the pressure over the last 12 months.
The average five-year fixed mortgage rate is now 6.06%, up from 3.81% a year ago. The average two-year fixed mortgage rate is now 6.56%, up from 3.71% a year ago. The average 85% LTV five -year fixed mortgage rate is now 6.14%, up from 3.76% a year ago. And the average 60% LTV five-year fixed mortgage rate is now 5.77%, up from 3.46% a year ago.
According to Rightmove, 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 £1,252 per month, up from £984 per month a year ago.