Uswitch Monthly Mortgage Rates Report – September Sees Significant Rate Drop

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.

 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.

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%

 

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