Mortgage rates increased at a record pace in 2022, with the 10-year fixed mortgage rate doubling between March 2022 and December 2022. With inflation increasing, the Bank of England introduced several bank rate hikes, resulting in higher mortgage rates. In May 2025, the average 10-year fixed rate interest rate reached **** percent. As borrowing costs get higher, demand for housing is expected to decrease, leading to declining market sentiment and slower house price growth. How have the mortgage hikes affected the market? After surging in 2021, the number of residential properties sold declined in 2023, reaching just above *** million. Despite the number of transactions falling, this figure was higher than the period before the COVID-19 pandemic. The falling transaction volume also impacted mortgage borrowing. Between the first quarter of 2023 and the first quarter of 2024, the value of new mortgage loans fell year-on-year for five straight quarters in a row. How are higher mortgages affecting homebuyers? Homeowners with a mortgage loan usually lock in a fixed rate deal for two to ten years, meaning that after this period runs out, they need to renegotiate the terms of the loan. Many of the mortgages outstanding were taken out during the period of record-low mortgage rates and have since faced notable increases in their monthly repayment. About **** million homeowners are projected to see their deal expire by the end of 2026. About *** million of these loans are projected to experience a monthly payment increase of up to *** British pounds by 2026.

Mortgage rates in the United Kingdom (UK) have risen dramatically since the beginning of 2022, causing concerns about households with loans up for renewal facing notable increases in costs. That is the case for 1.4 million fixed rate mortgages up for renewal in 2023. This type of mortgage is a popular choice among homebuyers because it allows them to lock in the interest rate for a specific period. After the period runs out, homebuyers need to renegotiate the loan or switch to a variable interest rate. The vast majority of loans up for renewal until 2024 have an initial effective mortgage rate of less than 2.5 percent - significantly lower than the current mortgage rates.

Mortgage Rate in the United Kingdom decreased to 6.98 percent in June from 7.09 percent in May of 2025. This dataset provides - United Kingdom BBA Mortgage Rate- actual values, historical data, forecast, chart, statistics, economic calendar and news.

Interest rate on new mortgages in the United Kingdom decreased to 4.47 percent in May from 4.49 percent in April of 2025. This dataset includes a chart with historical data for the United Kingdom Interest Rate on New Mortgages.

Mortgage interest rates in Europe soared in 2022 and remained elevated in the following two years. In many countries, this resulted in interest rates more than doubling. In the UK, the average mortgage interest rate rose from **** percent in 2020 to **** percent in 2023, before falling to **** in 2024. 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 homebuying. 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.

Mortgage interest rates in the UK were on a downward trend for more than a decade before soaring in 2022. In the fourth quarter of 2024, the average weighted interest rate stood at **** percent — nearly ***** times the interest rate in the fourth quarter of 2021. 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 nearly ***billion euros in gross residential mortgage lending as of the second quarter of 2023. When comparing the total outstanding residential mortgage lending, the UK also ranks first with about *** trillion euros.

This dataset provides values for MORTGAGE RATE reported in several countries. The data includes current values, previous releases, historical highs and record lows, release frequency, reported unit and currency.

Mortgage interest rates worldwide varied greatly in 2024, from less than **** percent in many European countries, to as high as ** percent in Turkey. The average mortgage rate in a country depends on the central bank's base lending rate and macroeconomic indicators such as inflation and forecast economic growth. Since 2022, inflationary pressures have led to rapid increase in mortgage interest rates. Which are the leading mortgage markets? An easy way to estimate the importance of the mortgage sector in each country is by comparing household debt depth, or the ratio of the debt held by households compared to the county's GDP. In 2023, Switzerland, Australia, and Canada had some of the highest household debt to GDP ratios worldwide. While this indicator shows the size of the sector relative to the country’s economy, the value of mortgages outstanding allows to compare the market size in different countries. In Europe, for instance, the United Kingdom, Germany, and France were the largest mortgage markets by outstanding mortgage lending. Mortgage lending trends in the U.S. In the United States, new mortgage lending soared in 2021. This was largely due to the growth of new refinance loans that allow homeowners to renegotiate their mortgage terms and replace their existing loan with a more favorable one. Following the rise in interest rates, the mortgage market cooled, and refinance loans declined.

The average mortgage interest rate decreased in nearly every country in Europe between 2012 and 2021, followed by an increase in response to inflation. In the fourth quarter of 2024, Poland, Hungary, and Romania topped the ranking as the countries with the highest mortgage interest rates in Europe. Conversely, Belgium, Spain, and Italy displayed the lowest interest rates. The UK, which is the country with the largest value of mortgages outstanding, had an interest rate of **** percent.

The benchmark interest rate in the United Kingdom was last recorded at 4.25 percent. This dataset provides - United Kingdom Interest Rate - actual values, historical data, forecast, chart, statistics, economic calendar and news.

Mortgage Approvals in the United Kingdom increased to 63.03 Thousand in May from 60.66 Thousand in April 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.

The mortgage credit interest rate is the average interest rate on mortgage loan products offered to individuals and households by the commercial banks in the country. The mortgage credit is a loan used to finance the purchase of real estate. The table shows the latest available data from the national authorities as well as the values from three months ago and one year ago. The data are updated continuously.

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.

This dataset provides values for INTEREST RATE reported in several countries. The data includes current values, previous releases, historical highs and record lows, release frequency, reported unit and currency.

Mortgage credit interest rate, percent in the United Kingdom, April, 2025 The most recent value is 4.76 percent as of April 2025, a decline compared to the previous value of 4.79 percent. Historically, the average for the United Kingdom from January 2004 to April 2025 is 3.58 percent. The minimum of 1.59 percent was recorded in November 2021, while the maximum of 6.11 percent was reached in September 2008. | TheGlobalEconomy.com

In 2022, mortgages with an end period of less than five years were most common among interest-only borrowers. The share of borrowers who had a term of five years or less was 31 percent. Furthermore, some people also had very long mortgage deals that lasted between 10 and 20 years. There were also a lot of people who did not know when their deals would end.

The median loan-to-value ratio in the United Kingdom (UK) for sales made in the fourth quarter of 2023 was approximately **** percent. This meant that the average mortgage covered **** percent of the property sales price, leaving the home acquirer to cover the remaining **** percent with their own savings. Regionally, it was North East where the highest average LTV ratio was seen, at ** percent. Number of mortgage loans In 2023, the number of mortgage sales (PSD) stood at just over *******, which was a decrease from the previous year when the number of mortgage sales dropped significantly. Mortgage interest rates The vast majority of mortgage loans were taken out with fixed interest rates. A fixed interest rate is simply a mortgage where the rate of repayment is fixed. The Financial Conduct Authority (FCA) defines a standard variable rate as "the rate that is the lender’s underlying variable interest rate”. It is not surprising that fixed interest rates are the preferred option for so many borrowers - two, three, five and ten year fixed interest rates saw a continuous decrease in recent years, before surging in 2022.

Mortgage brokers’ revenue is anticipated to climb at a compound annual rate of 4.5% over the five years through 2024-25 to £2.3 billion, including estimated growth of . Rising residential property transactions stimulated by government initiatives and rising house prices have driven industry growth. However, mortgage brokers have faced numerous obstacles, including downward pricing pressures from upstream lenders and a sharp downturn in the housing market as rising mortgage rates ramped up the cost of borrowing. After a standstill in residential real estate activity in the immediate aftermath of the COVID-19 outbreak, ultra-low base rates, the release of pent-up demand, the introduction of tax incentives and buyers reassessing their living situation fuelled a V-shaped recovery in the housing market. This meant new mortgage approvals for house purchases boomed going into 2021-22, ramping up demand for brokerage services. 2022-23 was a year rife with economic headwinds, from rising interest rates to fears of a looming recession. Yet, the housing market stood its ground, with brokers continuing to benefit from rising prices. Elevated mortgage rates eventually hit demand for houses in the first half of 2023, contributing to lacklustre house price growth in 2023-24, hurting revenue, despite a modest recovery in the second half of the year as mortgage rates came down. In 2024-25, lower mortgage rates and an improving economic outlook support house prices, driving revenue growth. Mortgage brokers’ revenue is anticipated to swell at a compound annual rate of 5.3% over the five years through 2029-30 to £2.9 billion. Competition from direct lending will ramp up. Yet, growth opportunities remain. The emergence of niche mortgage products, like those targeting retired individuals and contractors, as well as green mortgages, will support revenue growth in the coming years. AI is also set to transform the industry, improving cost efficiencies by automating tasks like document verification, risk assessment and customer profiling.

Bank Lending Rate in the United Kingdom remained unchanged at 8.58 percent in May. This dataset provides - United Kingdom Prime Lending Rate - actual values, historical data, forecast, chart, statistics, economic calendar and news.