Frederick Potter As of March 2024, mortgage interest rates in the UK remain relatively low compared to historical levels. The Bank of England’s base rate has been maintained at 0.1% since March 2020, influencing the rates offered by lenders across the country. Here’s an overview of the current mortgage interest rates in the UK:
- Fixed-Rate Mortgages: Fixed-rate mortgages offer borrowers the certainty of a consistent interest rate for a predetermined period, typically ranging from two to ten years. As of March 2024, the average interest rate for a two-year fixed-rate mortgage is around 2.0% to 2.5%, while the average rate for a five-year fixed-rate mortgage ranges from 2.5% to 3.0%.
- Variable-Rate Mortgages: Variable-rate mortgages are linked to the lender’s standard variable rate (SVR), which can fluctuate in response to changes in the Bank of England base rate or other market conditions. Currently, the average SVR for variable-rate mortgages in the UK is approximately 3.0% to 4.0%.
- Tracker Mortgages: Tracker mortgages are tied to the Bank of England base rate, with the interest rate typically set at a certain percentage above or below the base rate. As of March 2024, the average interest rate for a tracker mortgage is around 1.5% to 2.0% above the base rate, depending on the lender and the specific terms of the mortgage.
- Specialist Mortgages: Borrowers with unique circumstances, such as self-employed individuals or those with adverse credit history, may find specialist mortgage products available to them. Interest rates for these mortgages can vary widely depending on the borrower’s financial situation and the lender’s assessment of risk.
- First-Time Buyer Deals: Many lenders offer special mortgage deals designed specifically for first-time buyers, including lower interest rates and higher loan-to-value (LTV) ratios. As of March 2024, first-time buyers may be able to secure mortgage rates as low as 1.5% to 2.0% for two-year fixed-rate deals, depending on their deposit size and creditworthiness.
It’s important to note that mortgage interest rates can vary depending on factors such as the lender, the loan amount, the borrower’s credit score, and the loan-to-value ratio. Additionally, market conditions and economic factors can influence interest rates over time. Potential property buyers considering purchasing in 2024 should shop around and compare offers from multiple lenders to find the best mortgage deal suited to their individual needs and financial circumstances. Consulting with a qualified mortgage advisor can also provide valuable guidance in navigating the mortgage market and securing a competitive interest rate.