Average mortgage rates unchanged in January 2022
The latest data from the Bank of England revealed that overall average mortgage rates for new business were flat in January 2022, neither up nor down.
What they said
The average floating mortgage rate for new business 1.60%
The average fixed mortgage rate for new business 1.58%
The average overall mortgage rate for new business 1.59%
This is the first time that we can recall that average mortgage rates for new business were unchanged from one month to the next, what makes this all the more remarkable is that it comes at a time when Bank Rate is rising. The Bank of England's Bank Rate is the interest rate on which all the other UK interest and mortgage rates are based on or set with reference to. You may have a fixed-rate mortgage, but that rate was fixed based on the financing costs (underlying interest rates and expected interest rates) at the time the rate was fixed.
At a time when so many other costs are rising the fact that average mortgage rates are unchanged will provide solace for some. It will be interesting to see if these rates continue to hold in the face of rising Bank Rate.
It is also worth remembering that average mortgage rates today are lower than they were one year ago, when new mortgage floating rates were 1.87%, and new fixed-rate mortgages 1.85%