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Will UK Mortgages Get Cheaper in 2025?

January 20, 2025January 20, 2025 interestratesinfo

Interest-Rates.Info - UK Mortgage & Property News - Birmingham Money - West Bromwich Money - Mortgage Brokers

Earlier this week we published an outlook for UK house prices. Now we look at mortgages, a key driver of housing market activity. Without the £1.7 trillion of mortgage finance, the whole ecosystem can’t function effectively. And that financing suddenly got more expensive in 2022 after a rapid increase in interest rates. While mortgage rates started to fall in 2024, there are some risks to the narrative that affordability will improve significantly this year. A surprise curveball has come from the UK government bond market in recent weeks.

Mortgage shelf-life plummets, and product choice dips too

August 19, 2024August 19, 2024 interestratesinfo

The average shelf-life of a mortgage product has dropped to just 17 days, down from 30 days a month, according to Moneyfacts.

Average mortgage rates on the overall two- and five-year fixed rate deals fell month-on-month by 0.18% and 0.15% respectively, halting five consecutive months of rises. These rates are now at their lowest level since March 2024.

The overall average two- and five-year fixed rates fell between the start of July and the start of August, to 5.77% and 5.38% respectively. The average two-year fixed rate is 0.39% higher than the five-year equivalent. The two-year fixed rate has now been higher than the five-year equivalent since October 2022.