Good news (sort of) for tenants wanting a mortgage to buy

Good news (sort of) for tenants wanting a mortgage to buy


Todays other news


Tenants seeking a way to buy a home have been given at least slightly reassuring news by Rightmove.

The portal says the mortgage market has remained relatively calm since the Bank of England raised base rate to 5.25 per cent last week.

Rightmove’s mortgage expert Matt Smith says: “As expected, despite the base rate rise, fixed-rate mortgage deals have continued to tentatively trend downwards and based on the latest swap rates, are likely to continue to do so slowly, barring any market surprises.

“A settled market provides more confidence and certainty and next week’s inflation data will be key to setting the tone for the following weeks. 

“If some positive news means confidence can continue to build, lenders may feel they can get more competitive with their rates to attract the many motivated buyers still in the market to move.”

However, year-on-year figures show the volatility of the past 12 months.

The average five-year fixed mortgage rate is now 6.06 per cent, up from 3.81 per cent a year ago. 

The average two-year fixed mortgage rate is now 6.56 per cent, up from 3.71 a year ago.

The average 85 per day LTV five year fixed mortgage rate is now 6.14 per cent, up from 3.76a year ago. 

And the average 60 per cent LTV five-year fixed mortgage rate is now 5.77 per cent, up from 3.46 per cent a year ago.

Rightmove says the average monthly mortgage payment on a typical first-time buyer type property when taking out an average five-year fixed, 85 per cent LTV mortgage, is now £1,252 per month, up from £984 per month a year ago.

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