The important takeaway from last week for those looking to take out a mortgage soon is that the expectation that the base rate has now peaked is now the predominant view of the market. This is the view of Rightmove’s mortgage expert Matt Smith.
However, Smith concedes there is still a sizeable but decreasing risk that we may see one more increase this winter.
“As we approach the final quarter of this year, we are likely to see continued stability in the mortgage market persist with rates continuing to gradually drop and more lenders likely to offer sub-5% deals.
“After what has been a rollercoaster twelve months for mortgage rates since the mini-budget, this will be welcome respite for home-movers after what continues to be a difficult adjustment from the prolonged period of ultra low rates”
According to Rightmove’s weekly mortgage tracker:
- The average 5-year fixed mortgage rate is now 5.54%, up from 4.45% a year ago
- The average 2-year fixed mortgage rate is now 6.07%, up from 4.60% a year ago
- The average 85% LTV 5-year fixed mortgage rate is now 5.60%, up from 4.38% a year ago
- The average 60% LTV 5-year fixed mortgage rate is now 5.16%, up from 4.11% 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 £1,187 per month, up from £1,048 per month a year ago.
