Mortgage rates hit six month high after recent bank h…
An analysis by Rightmove reveals that the average interest rate for a two year fixed mortgage at 95% loan to value mortgage is now above 6%.
It’s the first time the rate has been this high since November 2023.
The portal’s mortgage division says the average five year fixed mortgage rate is now 4.89%, up from 4.45% a year ago.
The average two year fixed mortgage rate is now 5.29%, up from 4.75% a year ago.
The average 85% LTV 5-year fixed mortgage rate is now 4.82%, up from 4.42% a year ago; meanwhile the average 60% LTV 5-year fixed mortgage rate is now 4.36%, up from 4.15% 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 £1,108 per month, up from £1,054 per month a year ago.
Five major lenders – NatWest, Barclays, Accord, Leeds Building Society and HSBC – have all announced rate increases so far this week, as concern grows that interest rates may not fall as rapidly as expected.
Swap rates have increased in the past week after US inflation came in higher than expected and economists appear to be divided about what this means for UK interest rates.
John Charcol head of marketing Nicholas Mendes says: “Swaps increased at the end of last week following recent data announcements in the UK and US, with speculation building momentum of a delayed bank rate reduction being pushed out to August. This adds to the likelihood of two or three bank rate reductions this year diminishing.”
