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 September 2023, the average 10-year fixed rate interest rate reached 5.1 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 2022, reaching close to 1.3 million. Despite the number of transactions falling, this figure was higher than the period before the COVID-10 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 fourth 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 five million homeowners are projected to see their deal expire by the end of 2026. About two million of these loans are projected to experience a monthly payment increase of up to 199 British pounds by 2026.

Mortgage interest rates in the UK were on a downward trend for more than a decade before soaring in 2022. In the second quarter of 2024, the average weighted interest rate stood at 4.8 percent - nearly three 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 61 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 1.9 trillion euros.

Interest rate on new mortgages in the United Kingdom increased to 4.51 percent in January from 4.47 percent in December of 2024. This dataset includes a chart with historical data for the United Kingdom Interest Rate on New Mortgages.

Interest rates in the UK spiked in 2022 and 2023, with the average rate for new mortgage advances to individuals and individual trusts rising by 3.61 percentage points between January 2022 and January 2024. Mortgages on a floating interest rate were the most expensive as of January 2024, at 5.75 percent. On the other hand, the average rate for new advances with a five-year fixed rate was 4.88 percent.

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 Hungary, Poland, Czechia, and Romania, mortgage rates peaked in late 2022 and the beginning of 2023, followed by a gradual decline until the first quarter of 2024. The rest of the countries under observation, including the biggest mortgage markets - the UK and Germany, saw a continued increase in interest rates until the fourth quarter of 2023. In the first quarter of 2024, mortgage interest rates declined quarter-on-quarter across almost all markets in focus, marking a long awaited easing of monetary policy.

Graph and download economic data for Consumer Price Index: Retail price Index: All Items Less Mortgage Interest Rate for the United Kingdom (CPRPTT02GBQ661N) from Q1 1975 to Q4 2017 about mortgage, United Kingdom, all items, retail, CPI, interest rate, interest, housing, rate, price index, indexes, and price.

Data for households in receipt of Support for Mortgage Interest (SMI) loans is available in Stat-Xplore on a quarterly basis.

These quarterly experimental statistics include the number of households who are currently in receipt of the support as well as the number who have received SMI loans so far (see the background information and methodology note for an explanation of households).

The statistics are broken down by:

• Quarter
• Country, Region
• Qualifying Benefit

Geography data

Geography information may not be up to date for some households. This affects the geography statistics from April 2020.

Background information

Read the background information and methodology note for guidance on these statistics, such as timeliness and interpretation.

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Support for Mortgage Interest statistics are published quarterly. The dates for future releases are listed in the statistics release calendar.

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Mortgage interest rates in Europe soared in 2022 and remained elevated in 2023. In many countries, this resulted in interest rates more than doubling. In Denmark, the average mortgage interest rate rose from 0.67 percent in 2021 to 4.98 percent in 2023. 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 will allow mortgage lenders to reduce mortgage interest rates. What is the impact of interest rates on homebuying? 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.

The benchmark interest rate in the United Kingdom was last recorded at 4.50 percent. This dataset provides - United Kingdom Interest Rate - actual values, historical data, forecast, chart, statistics, economic calendar and news.

Interest Rate on Outstanding Mortgages in the United Kingdom decreased to 3.79 percent in December from 3.80 percent in November of 2024. This dataset includes a chart with historical data for the United Kingdom Interest Rate on Outstanding Mortgages.

Mortgage interest rates worldwide varied greatly in 2024, from less than four percent in many European countries, to as high as 44 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.

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 23.6 percent of their income on mortgage interest and 7.2 percent on capital repayment. In 2019, the year with the most affordable mortgages, mortgage interest accounted for 5.9 percent and capital repayment was 11.5 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 23 percent of income.

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.

Key information about United Kingdom Long Term Interest Rate

• United Kingdom Long Term Interest Rate: Month Avg: United Kingdom: ECB Harmonised was reported at 4.52 % pa in Feb 2025, compared with 4.67 % pa in the previous month.
• UK Long Term Interest Rate data is updated monthly, available from Jan 1993 to Feb 2025.
• The data reached an all-time high of 8.99 % pa in Sep 1994 and a record low of 0.15 % pa in Jul 2020.
• Long Term Interest Rate is reported by reported by CEIC Data.

The European Central Bank provides monthly Harmonised Long Term Interest Rate. The data reflects primary market yields.


Related information about United Kingdom Long Term Interest Rate

• In the latest reports, UK Short Term Interest Rate: Month End: ICE LIBOR: 3 Months was reported at 0.09 % pa in Apr 2021.
• The cash rate (Policy Rate: Month End: Base Rate) was set at 4.50 % pa in Feb 2025.
• UK Exchange Rate against USD averaged 0.79 (USD/GBP) in Jun 2023.

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.

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.

Abstract copyright UK Data Service and data collection copyright owner.

The Survey of Mortgage Lenders (SML) was launched on 1st April 1992 to succeed the 5% Sample Survey of Building Society Mortgage Completions (BSM) (See GN:33191). The aims were to improve the survey in three principal ways:
a) to broaden the range of institutions surveyed to incorporate other mortgage lenders in addition to building societies and Abbey National. With the entry of the high street banks and then the centralised lenders into the mortgage market, information provided by the building societies no longer represented the whole market in the way it did when the BSM was set up in the 1960s.
b) to extend its coverage to include further advances, remortgages and top-up loans in addition to first mortgages.
c) to increase the level of detail on the questionnaire especially with respect to the characteristics of the mortgage loan.
An important consideration for users of the data is that the SML figures allow continuity with the BSM survey results to be maintained for a reasonable period.
Main Topics:
Financial institution code, date mortgage completed, whether dwelling is wholly or partly occupied by borrower. Mortgage amount, type of advance, whether solely for purchase of property, period of mortgage, gross rate of interest, whether the interest charged is fixed or variable rate, whether interest payments are discounted or deferred, repayment method, source of mortgage business, purchase price and whether discounted in any way, location of dwelling, whether new, age of dwelling, type of dwelling, number of habitable rooms, number, sex and age of borrowers, basic income of main borrower, other income and total income on which mortgage is based, whether applicant previously owner occupier, previous tenure.

This dataset contains two sheets showing: The number of regulated mortgages outstanding as at end 2022 in the UK by region/country, broken down by interest rate type (for example fixed rate, Standard Variable Rate etc) The number regulated fixed rate mortgages outstanding as at end 2022 in the UK by region/country, broken down by the month in which the fixed rate ('incentive rate') ends The data was provided to the GLA by the FCA, and the source is FCA Mortgages Performance Product Sales Data (PSD007).

In the fourth quarter of 2023, the number of mortgage sales in the UK stood at over 212,000. Of these, the vast majority were taken out with a fixed interest rate. The average mortgage interest rate soared in 2022. That has resulted in an overall decline in mortgage sales and a slight uptick in sales with a variable rate.A fixed interest rate is simply a mortgage where the rate of repayment is fixed. The source defines a standard variable rate as "the rate that is the lender’s underlying variable interest rate. This rate is a basic variable rate charged to borrowers with no discounts or other special deals. It is also the rate used by the lender as a reference rate when defining a discounted variable rate product (e.g., discounted product ABC is 0.50 percent below the lender’s standard variable or basic rate). This is the rate that mortgage deals will often revert to after a special rate period."