The latest MoneyFacts data shows that the average standard variability rate (SVR) is further below the 8% month of the month, at 7.48%, down from 8.18% a year ago.
The latest data show that since June last year, the average two-year fixed interest rate has dropped from 5.93% to 5.12%, while the average five-year fixed interest rate has dropped from 5.50% to 5.09%.
Both fixes are down monthly, with averages of 5.18% and 5.10% of the previous month, respectively.
Among 10-year fixed-rate mortgages, the average interest rate in June 2024 was 6.03%. The interest rate fell to 5.48%, down monthly.
The average mortgage rate for monetary facts fell to 5.12%, down from 5.17% per month.
It has dropped from 5.77% since June 2024, but is lower than 5.34% in June 2023.
The Bank of England plans to announce the Monetary Policy Committee’s decision on bank interest rates at noon today. Bank interest rates are expected to remain unchanged.
Earlier this month, MoneyFacts showed that average mortgage rates fell significantly in June compared to last month, while overall mortgage options fell slightly, while average shelf life for mortgages fell.
“Borrowers will hope that the downward trend will continue in the coming months, especially as millions of consumers have been struck by low-priced fixed deals this year,” said Rachel Springall, a financial expert at MoneyFactscompare.co.uk.
“The motivation to get new deals is widespread because lenders have been busy reconnecting transactions due to last month’s Bank of England’s base tax cuts and swap rate volatility.”
“However, sticky inflation and current global pressures may lead to a more cautious approach to rate setting, and this uncertainty affects swap rates.”
“These developments may bring disappointment to borrowers, but it is worth noting that the market is in much better shape than it has been in previous years, with lenders constantly reviewing their stress tests to deal with government plans to boost UK growth.”
“There is no way to borrow more mortgages now. Prisoners can now get rid of their expensive variable rate mortgages and get lower fixed-rate deals.”
“Indeed, a typical mortgage borrower is charged a 7.48% average (SVR) of 7.48% average (SVR) compared to a typical two-year fixed interest rate.”
“First-time home buyers remain a key part of the mortgage market, because without them, the housing market may stagnate. Lenders must work hard to support these buyers in order to keep the market going.”
“Buyers are likely to be struggling with the cost of living, without parental assistance and no large amounts of money to put down their deposits to get a mortgage.”
“Thankfully, lenders have been increasing the scope of transactions for loan value, and relaxing stress tests can now allow first-time home buyers to finish first place on the property ladder.”
“New buyers first need to seek advice to understand the price drop because the price plummeted because it is a risk for those who borrow at the highest end of the loan to the value range.”
