If you’re in the market for a mortgage, you’re probably keeping a keen eye on interest rates. In recent weeks, rates have gone up slightly on average, but on the positive side there are currently more products available than there’s been for 16 years.
Between March and April, the average rates for two- and five-year fixed mortgages increased slightly. However, there are now over 6,000 mortgage options out there for you to choose from, the most since 2008.
Good news for those looking for a mortgage with a 90% loan-to-value ratio—the number of deals available has gone up for the second month in a row, hitting a four-year high.
And if you’re aiming for a 95% loan-to-value mortgage, you’re in luck too. The number of deals for you has increased for the fourth month straight, reaching its highest point in nearly two years.
The average lifespan of a mortgage product on the market is about 22 days, up from 15 days just a month ago.
According to Rightmove, the average interest rate for a two-year fixed mortgage with a 95% loan-to-value ratio has surpassed 6% for the first time since November 2023.
Meanwhile, the average five-year fixed mortgage rate has climbed to nearly 5%, up from around 4.45% a year ago.
First-time buyers, brace yourselves. If you’re looking at a typical property with an 85% loan-to-value mortgage, your monthly payment could be around £1,108 now, up from £1,054 a year ago.
Several big-name lenders, including NatWest, Barclays, and HSBC, have already announced rate increases. Why? Well, it’s all due to some uncertainty in the market. Swap rates, which influence fixed mortgage rates, have gone up recently because of higher-than-expected inflation in the US.
But don’t panic just yet. While some lenders have raised rates by quite a bit, others have only made small adjustments. And there are still good deals out there if you look carefully.
So, if you’re in the market for a mortgage, keep your eyes peeled and weigh up your options. There’s still plenty of choice to potentially fit your requirements.
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