If you’re thinking about buying a home, you might be wondering what the current mortgage rates are in the UK.
Lenders change the rates of their mortgage products regularly. That’s why we update the average mortgage rates weekly and compare how they’ve changed since the previous week. You can also compare the rates across a range of loan to value (LTV) percentages.
What’s happening with mortgage rates now?
There has been lots of news about Base Rate rises and how they can impact mortgage rates. The Bank of England (BoE) meet about every six weeks to decide whether the Base Rate should go up or down, or stay the same. In February, the Base Rate increased by 0.5% to 4%. The next decision will be announced on 23 March.
Our mortgage expert Matt Smith says: “Since the Bank of England increased the Base Rate to 4% in February, average rates for a 60% LTV, 5-year fixed-rate mortgage are down from 4.45% to 4.32%, while 85% LTV mortgages over the same term have reduced from 4.82% to 4.66%.
“In the last week some average rates crept up a little after a period of relative stability but this is not necessarily the start of a period of further rate increases, with lenders likely waiting to see what the Bank of England does with Base Rate on Thursday before they act.”
If, as now appears likely, the Bank of England does not raise rates, lenders may start to reduce prices,” he adds.
What are the current UK mortgage interest rates?
On Tuesday 21 March 2023
Average fixed-term mortgage rates for home-buyers with 5-10% deposits
| Loan to value (LTV) | Term | Average rate 21 Mar 2023 | Average rate 14 Mar 2023 |
|---|---|---|---|
| 95% | 2-year fixed | 5.61% | 5.61% |
| 95% | 5-year fixed | 5.2% | 5.12% |
| 90% | 2-year fixed | 5.3% | 5.31% |
| 90% | 5-year fixed | 4.87% | 4.87% |
Average fixed-term mortgage rates for home-buyers with 15-25% deposits
| Loan to value (LTV) | Term | Average rate 21 Mar 2023 | Average rate 14 Mar 2023 |
|---|---|---|---|
| 85% | 2-year fixed | 5.05% | 5.06% |
| 85% | 5-year fixed | 4.66% | 4.67% |
| 75% | 2-year fixed | 4.75% | 4.76% |
| 75% | 5-year fixed | 4.4% | 4.4% |
Average fixed-term mortgage rates for home-buyers with 40% deposits
| Loan to value (LTV) | Term | Average rate 21 Mar 2023 | Average rate 14 Mar 2023 |
|---|---|---|---|
| 60% | 2-year fixed | 4.68% | 4.66% |
| 60% | 5-year fixed | 4.32% | 4.28% |
These rates are provided by Podium and are an average based on 95% of the mortgage market. All rates are based on products with a circa £999 fee.
How much can you borrow with a mortgage?
The amount you can borrow with a mortgage is determined by an affordability assessment and your interest rate is determined by the amount of deposit you have, otherwise known as loan-to-value (LTV).
LTV is expressed as a percentage, and it reflects the size of the mortgage you need as a proportion of the value of the home you want to buy. The bigger the deposit you have, the lower the LTV, and vice-versa.
A good way to find out how much you could borrow is to use a mortgage calculator. And to get a personalised result by applying for a Mortgage in Principle which will take you one step closer to a mortgage offer.
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