Average mortgage rates rise again
The Bank of England released average mortgage rates by Loan to Value (LTV) today
What they said
Average mortgage rate for 75% LTV 2-year fixed rates mortgages 2.35%
Average mortgage rate for 90% LTV 2-year fixed rates mortgages 2.61%
Average mortgage rate for 95% LTV 2-year fixed rates mortgages 2.95%
There can be little doubt now that mortgage rates are on the rise. The average new business mortgage rate for 75% LTV two year fixed rate mortgages has risen for the last seven months in a row, almost doubling, from 1.20% in September 2021 to 2.35% in April 2022.
90% LTV 2 year fixed rate mortgage rates have risen every month so far in 2022 up 34% from 1.95% in December 2021 to 2.61% in April 2022.
Interestingly the new business mortgage rates for 95% LTV 2 year fixed rate mortgages have risen the least, up just 6.5% so far this year from 2.77% in December 2021 to 2.95% in April 2022 and remain 26% below their 4.01% level in April 2021.
We expect Bank Rate to continue to rise, and the Bank of England hs said that it could increase to 2.5% from its current 1.0%.
You can see how changes in mortgage rates will impact your mortgage payments by using our mortgage calculator
In a historical context mortgage rates still remain very low and good deals can be struck in the coming months, but the lowest rates are now behind us.