Lowest UK Mortgage Rates March 2024

by | Wednesday 20th Mar 2024 | Mortgage News

Lowest UK mortgage rates in March 2024

Lowest mortgage rates in March 2024

As mortgage brokers, we are constantly keeping a keen eye on mortgage rates as they change almost on a daily basis. Despite some promising rate reductions in the first couple of months of 2023, in recent weeks, the trend has been toward upward movement, reflecting broader speculation in the industry regarding the Bank of England’s upcoming base rate announcement. In a message sent out to brokers, Kellie Steed, a mortgage expert at Uswitch, spoke about the current state of UK mortgage rates.

Uswitch Comments On Lowest Mortgage Rates In 2024

“In the past week,” Steed notes, “lenders have continued to edge rates back upwards, ahead of the base rate announcement this Thursday (21st of March 2024). This is likely due to broad speculation across the industry that the Bank of England (BoE) will not reduce this base rate this time around.”

This news may be a bit of a concern for homeowners with fixed-rate deals nearing expiration, many of whom are currently enjoying rates of 3% or below. In our eyes, we need to accept that rates are higher now and we are unlikely to see rates below 3.5% for a while. What borrowers should be focusing on now, is securing a deal and a rate that still makes financial sense and that you still feel comfortable with. That is the key. Comfortability with your finances.

Mortgage Lenders Are Adapting

Steed goes on to discuss the changing landscape of mortgage lending. In her communication to brokers, she identifies that many lenders are beginning to broaden their affordability criteria. For instance, she point out that Santander has expanded its acceptable secondary income sources to include Universal Credit. Moreover, institutions like Halifax have extended their maximum age limits on mortgage applications. These adjustments aim to assist borrowers in meeting the demands of higher interest rates.

Finally she goes on to comment on the opinions of economists moving forward: “Some economists expect the first BoE base rate cut to come in May of this year. However, with rates being pulled increasingly quickly again, it’s a difficult decision whether to remortgage now or wait out to see if this rings true in May. The average standard variable rate is still above 8.5%, so if your deal’s end date is imminent, it’s best to speak to a broker as soon as possible.”

So, with Uswitch’s insights in mind, let’s take a look at some data also released by Uswitch about the average UK mortgage rates across the ‘big six’ prominent UK lenders as of the 19th of March 2024:

Average UK mortgage rates from the big six lenders in March 2024

Two-year fixed-rate mortgage (75% LTV): 4.99%

Five-year fixed-rate mortgage (75% LTV): 4.63%

Two-year variable-rate mortgage (75% LTV): 5.75%

Two-year fixed-rate mortgage (90% LTV): 5.66%

Standard variable rate (SVR): 7.50%

Average UK mortgage rates across the market in March 2024

For those seeking the most competitive rates, it’s essential to explore options beyond the big six lenders. Across the market, the lowest rates as of the time of writing are as follows:

5 year fix (75% LTV) across all lenders: 4.01%

2 year fixed (75% LTV Residential) across all lenders: 4.59%

2 year variable (75% LTV Residential) across all lenders: 4.79%

2 Year Fixed (90% LTV Residential) across all lenders: 5.14%

Speak To A Whole Of Market Mortgage Broker In 2024

Navigating the mortgage landscape can be complex, especially given the current economic climate. Working with a qualified and experienced whole-of-market mortgage broker, such as Oportfolio, can provide invaluable assistance in securing the most competitive and beneficial mortgage rate and product tailored to individual circumstances. Our expertise and access to a wide range of lenders ensure that our clients receive personalised solutions, easing the process of finding the right mortgage in today’s dynamic market. Call or email our team today to arrange a free initial consultation.

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If you have any questions about UK mortgage news or or anything you’ve read then please get in touch. We’d love to hear from you.

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