Latest analysis1 has revealed how quickly the mortgage market is changing.
Homeowners coming to the end of a five-year fixed term, on an average rate of 1.99%, would have been paying £725 a month. The average rate for a five-year fixed-term mortgage was 5.83% at the end of June 2023. On a remaining mortgage balance of £143,465, those remortgaging onto another five-year fixed rate would see their average monthly repayment increase to £1,014 – a hike of £289 a month.
Homebuyers currently looking to secure a deal on the average house price (£286,489) will face a monthly mortgage repayment of £1,362 – based on a 25-year term at 75% loan-to-value at an average rate of 5.83%.
Your home may be repossessed if you do not keep up repayments on your mortgage
1Octane Capital