As the summer sun continues to shine upon the United Kingdom (Just kidding!), the mortgage market has seen subtle movements in average mortgage rates during the first week of August 2023. According to the latest data released by Uswitch.com, a leading comparison website, the mortgage market has seen some marginal yet significant changes across various loan-to-values and fixed rate products.
Average UK Mortgage Rates August 2023
Two-Year Fixed Rate Mortgages (75% LTV): At the end of July 2023, the average rate for a two-year fixed rate mortgage with a 75% LTV stood at 6.88%. However, a change has been recorded by the first week of August, with the rate reducing down to an average of 6.84%. This shows a fractional decrease of 0.04%.
Five-Year Fixed Rate Mortgages (75% LTV): Similarly, for those considering a five-year fixed rate mortgage with a 75% LTV, the interest rate at the end of July 2023 was 6.54%. By the start of August, the rate had dipped marginally again to 6.44%, reflecting a slight decline of 0.01%.
Two-Year Variable Rate Mortgages (75% LTV): One of the more noticeable changes occurred in the two-year variable rate mortgage category with a 75% LTV. During July, the rate was set at 5.59%. However, within the span of a week, it surged to 5.94%, showcasing a substantial increase of 0.35%. This is mainly due to the Bank of England raising the base rate by another 0.25% to land at 5.25%, meaning variable rates have generally increased across many lender offerings.
Two-Year Fixed Rate Mortgages (90% LTV): For borrowers with a higher loan-to-value ratio of 90%, the average two-year fixed rate mortgage was recorded at 6.64% in July 2023. By August 2023, this rate had experienced a slight increase, settling at 6.69%. This increase of 0.05% suggests that lenders are maintaining a cautious approach when lending to people with higher percentage borrowing and lower deposits.
Standard Variable Rate (SVR): The standard variable rate (SVR) was reported at 8.49% in July 2023. By the first week of August, the rate saw a minor rise to 8.50%, reflecting a 0.01% increase.
Average UK Mortgage Rates From the Big Six Lenders
The UK’s major high street mortgage lenders, including Nationwide, Santander, HSBC, Halifax, Barclays Bank, NatWest, and Lloyds Bank, have experienced a mix of rate movements across various mortgage products.
For two-year fixed-rate mortgages with a 75% LTV, the average rate remained steady at 6.44% from July to August 2023. However, in the five-year fixed rate mortgage category with a 75% LTV, a slight decrease from 5.84% to 5.75% was recorded by Uswitch during the same period, marking a modest reduction of 0.09%.
The two-year variable rate mortgage rate with a 75% LTV climbed from 5.49% in July 2023 to 5.84% in August, reflecting a 0.35% surge. For two-year fixed rate mortgages with a 90% LTV, the average rates remained unchanged at 6.54% from July to August 2023.
Lastly, the standard variable rate (SVR) for these major lenders maintained stability, with no changes recorded from July’s 7.74% to August’s 7.74%.
What Do Mortgage Advisors Think?
August 2023 has introduced a series of modest shifts in the UK’s average mortgage rates. While these changes may not show significant changes, they do provide insight into the movements of the country’s financial landscape and the mortgage market in general. The most important thing to draw from this data is that people NEED advice. There really is no point in going it alone when handling something as significant as a mortgage. And if these regular rate fluctuations can teach you anything, it is that you need the help and guidance of a professional to help you to get the most competitive deal. That’s where we at Oportfolio mortgages come in. Our team of advisor and administrators are experts in the UK mortgage market and can help you to get the right mortgage deal for your circumstances. Call our team today or drop us a message to arrange a chat. We are here to help.