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 last week of December 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 December 2023
Two-Year Fixed Rate Mortgages (75% LTV): At the end of November 2023, the average rate for a two-year fixed rate mortgage with a 75% LTV stood at 6.39%. However, a change has been recorded by the end of December 2023, with the rate reducing down to an average of 6.29%. This shows a fractional decrease of 0.1%.
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 November 2023 was 6.02%. By the end of December, the rate had dipped marginally again to 5.97%, reflecting a slight decline of 0.05%.
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. November 2023, the rate was set at 5.94%. This has not changed at all with the rate in December also staying at 5.94%.
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 6.00% in November 2023. By December 2023, this rate had experienced a slight decrease, settling at 5.89%.
Standard Variable Rate (SVR): The standard variable rate (SVR) was reported at 8.74% in November 2023. By the end of December 2023 it had stayed the same.
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 5.175% in December 2023. However, in the five-year fixed rate mortgage category with a 75% LTV, a rate of 4.81% was recorded by Uswitch during the same period.
The two-year variable rate mortgage rate with a 75% LTV climbed to 5.74% in December 2023. For two-year fixed rate mortgages with a 90% LTV, the average rates remained unchanged at 5.79% in December 2023.
Lastly, the standard variable rate (SVR) for these major lenders stood at 7.5% in December 2023.
What Do Mortgage Advisors Think?
December 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.
