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 August 2025, the average 10-year fixed mortgage rate had climbed to 4.49 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 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.

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 fourth quarter of 2024, the average mortgage interest rate in the UK stood at *** percent. Belgium 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.

Mortgage Rate in the United Kingdom decreased to 6.86 percent in August from 6.95 percent in July of 2025. This dataset provides - United Kingdom BBA Mortgage Rate- actual values, historical data, forecast, chart, statistics, economic calendar and news.

Mortgage interest rates worldwide varied greatly in June 2025, 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 increases 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 2024, 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 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 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.

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 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.

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 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.

Mortgage Approvals in the United Kingdom increased to 65.35 Thousand in July from 64.57 Thousand in June 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.

In 2024, the average mortgage rates in European countries varied from *** percent in Bulgaria to over nine percent in Hungary. The mortgage rate for a home purchase is decided depending on the individual situation of the homebuyer, their credit history, and income, but they also follow macro determinants including the base lending rate, inflation, economic growth, and the health of the housing market. Starts, completions and prices The supply of new housing varies in different countries in Europe. In 2023, the number of new housing units completed per 1,000 citizens was between *** and seven, with this number varying greatly in different countries. Ireland and Poland were among the countries with most completed housing units. When it comes to housing starts, Ireland tops the ranking. The average transaction price of a new dwelling in 2023 ranged anywhere from roughly ***** euros per square meter to under ***** euros per square meter. Housing stock As the most populous country in Europe, Germany has the largest housing stock. Comparing the number of housing units per 1,000 citizens is an easy way to identify housing shortages. In Greece and the UK, for example, the number of dwellings per 1,000 citizens measured less than ***, compared to Bulgaria and Spain, where it was around ***.

The European home mortgage finance market, currently exhibiting a robust Compound Annual Growth Rate (CAGR) exceeding 6%, presents a significant investment opportunity. Driven by factors such as increasing homeownership aspirations, particularly among millennials, favorable government policies aimed at stimulating the housing market in several key European nations (like the UK's Help to Buy scheme, though with adjustments), and low-interest rate environments (though this is subject to change based on global economic conditions), the market is poised for considerable expansion throughout the forecast period (2025-2033). The market is segmented by application (home purchase, refinance, home improvement, other), provider (banks, housing finance companies, real estate agents), and interest rate type (fixed and adjustable). While the market size for 2025 is not explicitly stated, estimations based on the provided CAGR and considering historical market data from reputable sources suggest a substantial value in the billions, with annual growth consistently adding hundreds of millions each year. Key players such as Rocket Mortgage, United Shore Financial, and major European banks (Aareal Bank, Bank of America, Barclays, etc.) are vying for market share, utilizing diverse strategies to attract borrowers and maintain profitability. However, several restraints could influence the market's trajectory. These include fluctuating interest rates, which directly impact borrowing costs and affordability, potential economic downturns that affect consumer confidence and purchasing power, and increasingly stringent regulatory requirements aimed at safeguarding borrowers and promoting financial stability. Furthermore, competition among lenders is fierce, with banks facing challenges from rapidly growing fintech companies offering innovative mortgage products and services. Despite these challenges, the long-term outlook for the European home mortgage finance market remains positive, particularly in countries experiencing strong population growth and economic stability. Regional variations exist within the European market; the UK, Germany, France, and other large economies are expected to drive significant market value, while smaller nations will contribute proportionally less. The projected market size for 2033 is likely to demonstrate considerable growth from the 2025 base. Understanding these dynamics is crucial for stakeholders to navigate the market effectively. This comprehensive report provides an in-depth analysis of the European home mortgage finance market, covering the period from 2019 to 2033. With a base year of 2025 and an estimated market value in the billions (specific figures will be included in the full report), this study offers valuable insights for investors, lenders, and industry professionals seeking to navigate this dynamic sector. Keywords: Europe mortgage market, home loans Europe, mortgage finance Europe, European housing market, refinancing Europe, home purchase finance Europe, mortgage lenders Europe. Recent developments include: November 2022: Rocket Mortgage, the nation's largest mortgage lender and a part of Rocket Companies, today introduced a conventional loan option for Americans interested in purchasing or refinancing a manufactured home., November 2022: The Council of Europe Development Bank (CEB) approved four new loans worth EUR 232.5 million to boost affordable housing and other social sector development. Under this, it offered EUR 25 million in loans to Kosovo to finance the 'Adequate Social Housing Programme' to establish a sustainable social and affordable housing system in the country.. Notable trends are: Increased Number of Salaried Individuals is Driving the Market Growth.

The non-depository financing industry's revenue has contracted at a projected compound annual rate of 2.1% over the five years through 2024-25. The COVID-19 outbreak caused a large drop in borrowing in 2020-21 as consumers faced a lack of spending opportunities, outweighing the gains from businesses taking out additional loans to stay afloat. The industry has also faced stronger regulatory oversight to combat the proliferation of overly risky and expensive loans. The cost-of-living crisis has caused consumer lending to swell as households rely on short-term borrowing to make up for weakened savings and costs outpacing wages. Soaring interest rates have caused the cost of mortgages to skyrocket, damaging revenue as buyers pull back and lenders are more cautious. The Non-Depository Financing industry's revenue is estimated to climb by 1.7% in 2024-25 – and is expected to total £6.7 billion. This comes from the much-anticipated sliding down of interest rates that will aid the mortgage market and big returns from newer sectors like OpenAI and sustainable technologies. Industry revenue is expected to swell at a compound annual rate of 2.4% to £7.6 billion over the five years through 2029-30. The need for credit is set to be supported by the previous erosion of savings from spiked inflation, leading to more loans needed for sizeable investments as confidence rebounds. Non-depositary financing companies will continue facing stiff competition from other types of lenders, like peer-to-peer lenders. The regulation constricting payday loans will continue to push services towards a lower margin and higher volume approach, aiding those with lower credit scores but dented industry profit. The high cost of mortgages and economic headwinds will settle and start to rebuild the housing market, supporting revenue.

United Kingdom Retail Price Index: Housing: Mortgage Interest Payments data was reported at 239.300 13Jan1987=100 in Oct 2018. This records an increase from the previous number of 231.900 13Jan1987=100 for Sep 2018. United Kingdom Retail Price Index: Housing: Mortgage Interest Payments data is updated monthly, averaging 219.550 13Jan1987=100 from Jan 1987 (Median) to Oct 2018, with 382 observations. The data reached an all-time high of 416.500 13Jan1987=100 in Dec 2007 and a record low of 96.300 13Jan1987=100 in Jan 1988. United Kingdom Retail Price Index: Housing: Mortgage Interest Payments data remains active status in CEIC and is reported by Office for National Statistics. The data is categorized under Global Database’s United Kingdom – Table UK.I011: Retail Price Index.

Building society revenue is anticipated to grow at a compound annual rate of 27.4% over the five years through 2025-26 to £51.7 billion, including estimated growth of 2.7% in 2025-26. Building societies have benefitted from an influx of re-mortgaging activity, as homeowners have sought to lock in lower rates before expected interest rate rises. However, societies faced challenging operating conditions, including intense competition from other financial institutions like retail banks. Following the COVID-19 outbreak, the Bank of England underwent aggressive rate hikes, aiding interest income. Despite the growing base rate environment feeding through to elevated mortgage rates, the residential property market proved resilient for most of 2022-23, resulting in building societies reporting huge boosts to their net interest income. In 2023-24, rates continued to rise, lifting revenue growth further despite intensifying mortgage price competition. However, deposit costs picked up during the year, placing downward pressure on net interest income and profitability. Yet, revenue continued to skyrocket thanks to healthy interest income from mortgage lending in the higher base rate environment. In 2024-25, sticky inflation resulted in interest rates staying higher for longer, aiding revenue growth. However, rate cuts did occur as inflation normalised, contributing to a slower rate of revenue growth, which was partially offset by a healthy housing market. In 2025-26, revenue is set to continue growing as mortgage lending gathers momentum, with buyers making the most of lower borrowing costs. However, a declining base rate will continue to erode interest income and further slow revenue in 2025-26. Building society revenue is anticipated to grow at a compound annual rate of 2.5% over the five years through 2029-30 to reach £58.5 billion. The UK housing market will continue to grow thanks to lower borrowing costs and aid interest income in the coming years through healthier mortgage lending. Revenue growth will disperse outside of the capital in regions like the North West, Yorkshire and the West Midlands due to the government's levelling up agenda and private multinationals expanding their presence elsewhere.

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 2024, 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 in an effort 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.

Mortgage rates in the Netherlands increased sharply in 2022 and 2023, after declining gradually between 2008 and 2021. In December 2021, the average interest rate for new mortgage loans stood at **** percent, and by the end of 2023, it had risen to **** percent. In May 2025, mortgage rates decreased slightly, falling to **** percent on average. Mortgages with a 10-year fixed rate were the most affordable, at **** percent. Are mortgage rates in the Netherlands different from those in other European countries? When comparing this ranking to data that covers multiple European countries, the Netherlands’ mortgage rate was similar to the rates found in Spain, the United Kingdom, and Sweden. It was, however, a lot lower than the rates in Eastern Europe. Hungary and Romania, for example, had some of the highest mortgage rates. For more information on the European mortgage market and how much the countries differ from each other, please visit this dedicated research page. How big is the mortgage market in the Netherlands? The Netherlands has overall seen an increase in the number of mortgage loans sold and is regarded as one of the countries with the highest mortgage debt in Europe. The reason behind this is that Dutch homeowners were able to for many years to deduct interest paid from pre-tax income (a system known in the Netherlands as hypotheekrenteaftrek). Total mortgage debt of Dutch households has been increasing year-on-year since 2013.