Average mortgage rates continue to fall
The latest data from the Bank of England reveals that the average fixed and floating interest rates on new mortgages fell significantly in November 2021.
What they said
The average floating mortgage rate for new business 1.68%
The average fixed mortgage rate for new business 1.49%
The average overall mortgage rate for new business 1.51%
In our view, mortgage rates continued to fall as mortgage lenders fought for market share following the end of the Stamp Duty holiday. Overall mortgage rates are at record lows, and those who were in the re-mortgaging window in November are able to remortgage at very attractive rates.
Mortgage rates are very likely to rise this year following December's increase in Bank Rate. Households may have therefore missed the lowest rates on offer, however, taking a longer-term perspective mortgage rates are likely to remain relative low (in the context of history) for some time to come.
How big were the mortgage rate falls?
The average floating mortgage rate fell by 7.7% to 1.68%
The average fixed mortgage rate fell by 5.7% to 1.49%
Overall, the average mortgage rate for new business fell by 5.3% to 1.51%