Due to interest rates decreasing in recent years, mortgages in the United Kingdom have become overall more affordable: In 2007, when mortgages were the least affordable, a home buyer spent on average **** percent of their income on mortgage interest and *** percent on capital repayment. In 2019, the year with the most affordable mortgages, mortgage interest accounted for *** percent and capital repayment was **** percent of their income. As interest rates increase in response to the rising inflation, mortgage affordability is expected to worsen. Though below the levels observed before 2007, the total mortgage repayment between 2022 and 2026 is expected to exceed ** percent of income.

Mortgage rates surged at an unprecedented pace in 2022, with the average 10-year fixed rate doubling between March and December of that year. In response to mounting inflation, the Bank of England implemented a series of rate hikes, pushing borrowing costs steadily higher. By October 2025, the average 10-year fixed mortgage rate stood at **** percent. As financing becomes more expensive, housing demand has cooled, weighing on market sentiment and slowing house price growth. How have the mortgage hikes affected the market? After surging in 2021, the number of residential properties sold fell significantly in 2023, dipping to just above *** million transactions. This contraction in activity also dampened mortgage lending. Between the first quarter of 2023 and the first quarter of 2024, the value of new mortgage loans declined year-on-year for five consecutive quarters. Even as rates eased modestly in 2024 and housing activity picked up slightly, volumes remained well below the highs recorded in 2021. How are higher mortgages impacting homebuyers? For homeowners, the impact is being felt most acutely as fixed-rate deals expire. Mortgage terms in the UK typically range from two to ten years, and many borrowers who locked in historically low rates are now facing significantly higher repayments when refinancing. By the end of 2026, an estimated five million homeowners will see their mortgage deals expire. Roughly two million of these loans are projected to experience a monthly payment increase of up to *** British pounds by 2026, putting additional pressure on household budgets and constraining affordability across the market.

Mortgage interest rates in the UK were on a downward trend for more than a decade before soaring in 2022. In the first quarter of 2025, the average weighted interest rate stood at **** percent — nearly ***** times the interest rate in the first quarter of 2022. Mortgage rates also vary depending on the type of mortgage: Historically, fixed rate mortgages with a shorter term had on average lower interest rates. What types of mortgages are there? In terms of the type of interest rate, mortgages can be fixed and variable. A fixed interest rate is simply a mortgage where the rate of repayment is fixed, while a variable rate depends on the lender’s underlying variable interest rate. Furthermore, mortgages could be for a house purchase or for refinancing. The vast majority of mortgages in the UK are fixed rate mortgages for house purchase, and only a small share is for remortgaging. How big is the UK mortgage market? The UK has the largest mortgage market in Europe, amounting to over ** billion euros in gross residential mortgage lending as of the fourth quarter of 2024. When comparing the total outstanding residential mortgage lending, the UK also ranks first with about *** trillion euros.

UK Mortgage Rates

Mortgage products in the united kingdom

By Jeff [source]

About this dataset

This dataset contains information on thousands of mortgage products available in the UK, including the interest rate, APR, revert rate, fees, and initial rate period. This data can be used to compare different mortgage products and find the best deal for your needs

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How to use the dataset

This dataset contains information on thousands of mortgage products available in the UK, including the interest rate, APR, revert rate, fees, and initial rate period.

To use this dataset, simply download it and then import it into your favorite spreadsheet program. You can then use the data to compare mortgage rates across different products and banks.

This dataset can be used to help you: - Compare mortgage rates from different banks - Find the best mortgage product for your needs - Understand how fees and other charges affect the overall cost of a mortgage

Research Ideas

• Analysing the different mortgage products available on the market
• Benchmarking against other products in order to get a competitive rate
• Finding products that have low fees and revert rates

Acknowledgements

If you use this dataset in your research, please credit the original authors. Data Source

License

See the dataset description for more information.

Columns

File: UK_Mortgage_Rate.csv | Column name | Description | |:----------------------------|:----------------------------------------------------------------| | SKU | The product's SKU. (String) | | BANK_NAME | The name of the bank that offers the mortgage product. (String) | | MTG_PRODUCT_SUBTITLE | The subtitle of the mortgage product. (String) | | MTG_PRODUCT_TYPE_RAW | The raw product type of the mortgage product. (String) | | MTG_PRODUCT_YEARS | The number of years of the mortgage product. (Integer) | | MTG_INITIAL_RATE_PCT | The initial rate percentage of the mortgage product. (Float) | | MTG_APR_PCT | The APR percentage of the mortgage product. (Float) | | MTG_REVERT_RATE | The revert rate of the mortgage product. (Float) | | MTG_FEES_TOTAL | The total fees of the mortgage product. (Float) | | MTG_INITIAL_RATE_MONTHS | The initial rate months of the mortgage product. (Integer) | | SCAN_DATE | The date that the mortgage product was scanned. (Date) |

Acknowledgements

If you use this dataset in your research, please credit the original authors. If you use this dataset in your research, please credit Jeff.

August 2024 marked a significant shift in the UK's monetary policy, as it saw the first reduction in the official bank base interest rate since August 2023. This change came after a period of consistent rate hikes that began in late 2021. In a bid to minimize the economic effects of the COVID-19 pandemic, the Bank of England cut the official bank base rate in March 2020 to a record low of *** percent. This historic low came just one week after the Bank of England cut rates from **** percent to **** percent in a bid to prevent mass job cuts in the United Kingdom. It remained at *** percent until December 2021 and was increased to one percent in May 2022 and to **** percent in October 2022. After that, the bank rate increased almost on a monthly basis, reaching **** percent in August 2023. It wasn't until August 2024 that the first rate decrease since the previous year occurred, signaling a potential shift in monetary policy. Why do central banks adjust interest rates? Central banks, including the Bank of England, adjust interest rates to manage economic stability and control inflation. Their strategies involve a delicate balance between two main approaches. When central banks raise interest rates, their goal is to cool down an overheated economy. Higher rates curb excessive spending and borrowing, which helps to prevent runaway inflation. This approach is typically used when the economy is growing too quickly or when inflation is rising above desired levels. Conversely, when central banks lower interest rates, they aim to encourage borrowing and investment. This strategy is employed to stimulate economic growth during periods of slowdown or recession. Lower rates make it cheaper for businesses and individuals to borrow money, which can lead to increased spending and investment. This dual approach allows central banks to maintain a balance between promoting growth and controlling inflation, ensuring long-term economic stability. Additionally, adjusting interest rates can influence currency values, impacting international trade and investment flows, further underscoring their critical role in a nation's economic health. Recent interest rate trends Between 2021 and 2025, most advanced and emerging economies experienced a period of regular interest rate hikes. This trend was driven by several factors, including persistent supply chain disruptions, high energy prices, and robust demand pressures. These elements combined to create significant inflationary trends, prompting central banks to raise rates to temper spending and borrowing. However, in 2024, a shift began to occur in global monetary policy. The European Central Bank (ECB) was among the first major central banks to reverse this trend by cutting interest rates. This move signaled a change in approach aimed at addressing growing economic slowdowns and supporting growth.

Interest rate on new mortgages in the United Kingdom decreased to 4.19 percent in September from 4.26 percent in August of 2025. This dataset includes a chart with historical data for the United Kingdom Interest Rate on New Mortgages.

About 1.4 million households with mortgages up for renewal in the United Kingdom (UK) will face increasing monthly costs by the end of 2024 because of the aggressive mortgage interest hikes since the beginning of 2022. For about one million of these households, the increase will be between one British pound and 300 British pounds, while for 388,000 households, the increase will be higher. By December 2026, the number of households with rising mortgage payments is projected at 3.9 million. Meanwhile, about two million mortgage borrowers are expected to benefit from reduced mortgage payments by the end of 2026.

The benchmark interest rate in the United Kingdom was last recorded at 4 percent. This dataset provides - United Kingdom Interest Rate - actual values, historical data, forecast, chart, statistics, economic calendar and news.

Mortgage Rate in the United Kingdom remained unchanged at 6.78 percent in October. This dataset provides - United Kingdom BBA Mortgage Rate- actual values, historical data, forecast, chart, statistics, economic calendar and news.

United Kingdom UK: Risk Premium on Lending: Lending Rate Minus Treasury Bill Rate data was reported at 0.120 % pa in 2014. This records a decrease from the previous number of 0.199 % pa for 2013. United Kingdom UK: Risk Premium on Lending: Lending Rate Minus Treasury Bill Rate data is updated yearly, averaging 0.280 % pa from Dec 1967 (Median) to 2014, with 48 observations. The data reached an all-time high of 1.995 % pa in 1972 and a record low of -2.372 % pa in 1974. United Kingdom UK: Risk Premium on Lending: Lending Rate Minus Treasury Bill Rate data remains active status in CEIC and is reported by World Bank. The data is categorized under Global Database’s United Kingdom – Table UK.World Bank.WDI: Interest Rates. Risk premium on lending is the interest rate charged by banks on loans to private sector customers minus the 'risk free' treasury bill interest rate at which short-term government securities are issued or traded in the market. In some countries this spread may be negative, indicating that the market considers its best corporate clients to be lower risk than the government. The terms and conditions attached to lending rates differ by country, however, limiting their comparability.; ; International Monetary Fund, International Financial Statistics database.; ;

Mortgage interest rates in Europe soared in 2022 and remained elevated in the following two years. In many countries, this resulted in mortgage interest rates across the region more than doubling. In the first quarter of 2025, the average mortgage interest rate in the UK stood at **** percent. Spain had the lowest rate, at **** percent, while Poland had the highest, at *** percent. Why did mortgage interest rates increase? Mortgage rates have risen as a result of the European Central Bank (ECB) interest rate increase. The ECB increased its interest rates to tackle inflation. As inflation calms, the ECB is expected to cut rates, which allows mortgage lenders to reduce mortgage interest rates. What is the impact of interest rates on home buying? Lower interest rates make taking out a housing loan more affordable, and thus, encourage home buying. That can be seen in many countries across Europe: In France, the number of residential properties sold rose in the years leading up to 2021, and fell as interest rates increased. The number of houses sold in the UK followed a similar trend.

United Kingdom UK: Real Interest Rate data was reported at -1.195 % pa in 2014. This records an increase from the previous number of -1.378 % pa for 2013. United Kingdom UK: Real Interest Rate data is updated yearly, averaging 1.802 % pa from Dec 1967 (Median) to 2014, with 48 observations. The data reached an all-time high of 6.438 % pa in 1985 and a record low of -12.172 % pa in 1975. United Kingdom UK: Real Interest Rate data remains active status in CEIC and is reported by World Bank. The data is categorized under Global Database’s United Kingdom – Table UK.World Bank.WDI: Interest Rates. Real interest rate is the lending interest rate adjusted for inflation as measured by the GDP deflator. The terms and conditions attached to lending rates differ by country, however, limiting their comparability.; ; International Monetary Fund, International Financial Statistics and data files using World Bank data on the GDP deflator.; ;

The UK’s total loan balances outstanding (including credit card balances, personal loan balances, and residential mortgage balances outstanding) recorded a compound annual growth rate (CAGR) of 3.3% during 2014-18 to reach £1,626.6bn ($2,075.6bn). The majority of loan balances outstanding are from home loans, with residential mortgage balances outstanding accounting for 86.7% of total balances in 2018, followed by personal loans (8.8%) and credit cards (4.5%). However, uncertainty on account of Brexit and its impact on the economy will affect the growth of total loan balances outstanding in the coming years. As a result, we estimate total loan balances outstanding to record a subdued CAGR of 2.7% over 2019-23. The UK lending space is dominated by Lloyds Banking Group, Barclays, and RBS Group – a trend that is anticipated to continue over the coming years. However, they may face increased competition from non-bank lenders, digital banks, and digital lending platforms breaking into the market and offering low interest rates and hassle-free loan approvals. The savings market in the UK recorded a CAGR of 3.9% over 2014-18 to reach £1,433.7bn ($1,829.4bn) in 2018. The market grew at a higher rate compared to loan balances during the five-year review period due to economic uncertainty surrounding Brexit. Read More

Mortgage Approvals in the United Kingdom decreased to 65.02 Thousand in October from 65.65 Thousand in September of 2025. This dataset provides the latest reported value for - United Kingdom Mortgage Approvals - plus previous releases, historical high and low, short-term forecast and long-term prediction, economic calendar, survey consensus and news.

United Kingdom Lending Rate: Outs: Households: Personal Loan (PL) data was reported at 8.240 % pa in Mar 2025. This records a decrease from the previous number of 8.290 % pa for Feb 2025. United Kingdom Lending Rate: Outs: Households: Personal Loan (PL) data is updated monthly, averaging 7.590 % pa from Jan 1999 (Median) to Mar 2025, with 315 observations. The data reached an all-time high of 12.190 % pa in Jan 1999 and a record low of 5.410 % pa in Apr 2021. United Kingdom Lending Rate: Outs: Households: Personal Loan (PL) data remains active status in CEIC and is reported by Bank of England. The data is categorized under Global Database’s United Kingdom – Table UK.M002: Lending Rate: Outstanding. [COVID-19-IMPACT]

Policy interest rates in the U.S. and Europe are forecasted to decrease gradually between 2024 and 2027, following exceptional increases triggered by soaring inflation between 2021 and 2023. The U.S. federal funds rate stood at **** percent at the end of 2023, the European Central Bank deposit rate at **** percent, and the Swiss National Bank policy rate at **** percent. With inflationary pressures stabilizing, policy interest rates are forecast to decrease in each observed region. The U.S. federal funds rate is expected to decrease to *** percent, the ECB refi rate to **** percent, the Bank of England bank rate to **** percent, and the Swiss National Bank policy rate to **** percent by 2025. An interesting aspect to note is the impact of these interest rate changes on various economic factors such as growth, employment, and inflation. The impact of central bank policy rates The U.S. federal funds effective rate, crucial in determining the interest rate paid by depository institutions, experienced drastic changes in response to the COVID-19 pandemic. The subsequent slight changes in the effective rate reflected the efforts to stimulate the economy and manage economic factors such as inflation. Such fluctuations in the federal funds rate have had a significant impact on the overall economy. The European Central Bank's decision to cut its fixed interest rate in June 2024 for the first time since 2016 marked a significant shift in attitude towards economic conditions. The reasons behind the fluctuations in the ECB's interest rate reflect its mandate to ensure price stability and manage inflation, shedding light on the complex interplay between interest rates and economic factors. Inflation and real interest rates The relationship between inflation and interest rates is critical in understanding the actions of central banks. Central banks' efforts to manage inflation through interest rate adjustments reveal the intricate balance between economic growth and inflation. Additionally, the concept of real interest rates, adjusted for inflation, provides valuable insights into the impact of inflation on the economy.

The Direct Real Estate Activities industry have come up against numerous headwinds in recent years, ranging from the COVID-19 outbreak in 2020 to the high base rate environment in the years since, which has inflated borrowing costs for potential buyers. This is a sharp contrast to the ultra-low interest environment seen over the decade following the 2008 financial crisis. Still, revenue is forecast to edge upwards at a compound annual rate of 0.6% over the five years through 2025 to €622.9 billion, including an anticipated rise of 0.8% in 2025. Despite weak revenue growth, profitability remains strong, with the average industry profit margin standing at an estimated 18.9% in 2025. Central banks across Europe adopted aggressive monetary policy in the two years through 2023 in an effort to curb spiralling inflation. This ratcheted up borrowing costs and hit the real estate sector. In the residential property market, mortgage rates picked up and hit housing transaction levels. However, the level of mortgage rate hikes has varied across Europe, with the UK experiencing the largest rise, meaning the dent to UK real estate demand was more pronounced. Commercial real estate has also struggled due to inflationary pressures, supply chain disruptions and rising rates. Alongside this, the market’s stock of office space isn’t able to satisfy business demand, with companies placing a greater emphasis on high-quality space and environmental impact. Properties in many areas haven't been suitable due to their lack of green credentials. Nevertheless, things are looking up, as interest rates have been falling across Europe over the two years through 2025, reducing borrowing costs and boosting the number of property transactions, which is aiding revenue growth for estate agents. Revenue is slated to grow at a compound annual rate of 4.5% over the five years through 2030 to €777.6 billion. Economic conditions are set to improve in the short term, which will boost consumer and business confidence, ramping up the number of property transactions in both the residential and commercial real estate markets. However, estate agents may look to adjust their offerings to align with the data centre boom to soak up the demand from this market, while also adhering to sustainability commitments.

UK Auto Loan Market size was valued at USD 90.24 Billion in 2024 and is expected to reach USD 128.14 Billion by 2032, growing at a CAGR of 4.50% from 2026-2032.

UK Auto Loan Market Drivers

Demand for Vehicle Ownership: A fundamental driver is the ongoing need and desire for personal vehicles among UK consumers and businesses. This demand is influenced by factors like: * Population Growth and Urbanization: While the UK is a mature market, population shifts and the needs of urban living can still drive vehicle purchases. * Personal Convenience and Necessity: For many, owning a car remains essential for commuting, family needs, and leisure activities. * Preference for Personal Mobility: Despite the growth of alternative transportation, personal car ownership remains a strong preference for a significant portion of the population.

Economic Factors: The overall health of the UK economy plays a crucial role: * Consumer Confidence: When consumers feel financially secure, they are more likely to make large purchases like vehicles, often relying on financing. * Disposable Income: Higher disposable income allows more individuals to afford car payments. * Employment Rates: Stable or rising employment provides the security needed for taking on loan obligations.

Interest Rates: The cost of borrowing money directly impacts the auto loan market: * Bank of England Base Rate: The central bank's rate influences the interest rates that lenders charge for car loans. Lower base rates generally lead to more affordable loans, stimulating demand. * Lender Competition: Competition among banks, credit unions, and other financial institutions can lead to more attractive interest rates for consumers. * Individual Creditworthiness: A borrower's credit score significantly affects the interest rate they will be offered. Higher scores typically result in lower rates.

1. Lending Practices and Regulations: How loans are offered and regulated shapes the market:
2. Loan Terms and Structures: The availability of various loan terms (shorter vs. longer) and structures (e.g., Personal Contract Purchase - PCP, Hire Purchase - HP) influences affordability and consumer choice. PCP remains the most common method for new car financing in the UK.
3. Regulatory Environment: The Financial Conduct Authority (FCA) plays a crucial role in regulating the market, ensuring fair practices and consumer protection. Recent scrutiny regarding discretionary commission models highlights the impact of regulation.

Home Loans in the United Kingdom decreased to 4273 GBP Million in October from 5223 GBP Million in September of 2025. This dataset provides - United Kingdom Mortgage Lending- actual values, historical data, forecast, chart, statistics, economic calendar and news.