Mortgage comparison website Uswitch has launched amonthly report on mortgage rates.
The first report highlights a significant decrease in average mortgage rates over the past month, providing potential relief for homebuyers and those looking to remortgage.
In September the average 2-year fixed-rate mortgage (75% LTV) from the big six lenders decreased to 4.57%, down from 4.68% last month. This is a change of 0.09%.
Meanwhile ehe 5-year fixed-rate mortgage (75% LTV) also saw a reduction to 4.09%, down from 4.24%. This was 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%.
And buy-to-let mortgage rates improved too, with the average rate across all lenders decreasing by 0.15% down to 5.29%.
The continued downward trend in mortgage rates is encouraging news for prospective homebuyers and those looking to remortgage.
SAVINGS
These reductions could translate to significant savings over the life of a mortgage. On an average-priced house valued at £266,400 with a 15% deposit of £39,960 and a 25-year mortgage term, last month, the average monthly payment for a 2-year fixed-rate mortgage would have been £1,149.
However, with the recent decrease of 0.26% in average lowest mortgage rates, the monthly payment now amounts to £1,117. This results in a total saving of £768 over two years.
|
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.
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% |
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% |
