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 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.

Interest rate on new mortgages in the United Kingdom decreased to 4.34 percent in June from 4.47 percent in May of 2025. This dataset includes a chart with historical data for the United Kingdom Interest Rate on New Mortgages.

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.

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 **** percentage points between January 2022 and January 2024. Mortgages on a floating interest rate were the most expensive as of January 2024, at **** percent. On the other hand, the average rate for new advances with a five-year fixed rate was **** percent.

Interest Rate on Outstanding Mortgages in the United Kingdom increased to 3.88 percent in June from 3.87 percent in May of 2025. This dataset includes a chart with historical data for the United Kingdom Interest Rate on Outstanding Mortgages.

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

These quarterly official statistics include:

• the https://stat-xplore.dwp.gov.uk/webapi/openinfopage?id=SMI_CASELOAD" class="govuk-link">number of households who are currently in receipt of the support
• the https://stat-xplore.dwp.gov.uk/webapi/openinfopage?id=SMI_CUM" class="govuk-link">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

Background information

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

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Please complete this https://forms.office.com/e/bZ24FF7ha1" class="govuk-link">short survey to help us make the statistics better.

We welcome all feedback on the content, relevance, accessibility and timing of these statistics to help us in producing statistics that meet user needs. For non-media enquiries on these statistics email: nathan.kelly@dwp.gov.uk

For media enquiries please contact the DWP press office.

Next releases

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

Pre-release access

In addition to staff who are responsible for the production and quality assurance of the statistics, up to 24-hour pre-release access is provided to ministers and other officials. We publish the job titles and organisations of the people who have been granted up to 24-hour pre-release access to the latest Support for Mortgage Interest statistics.

Bank Lending Rate in the United Kingdom decreased to 8.58 percent in July from 8.61 percent in June of 2025. This dataset provides - United Kingdom Prime Lending Rate - actual values, historical data, forecast, chart, statistics, economic calendar and news.

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.

Graph and download economic data for Consumer Price Index: Retail price Index: All Items Less Mortgage Interest Rate for the United Kingdom (CPRPTT02GBM661N) from Jan 1975 to Feb 2018 about mortgage, United Kingdom, all items, retail, CPI, interest rate, interest, housing, rate, price index, indexes, and price.

United Kingdom UK: Lending Interest Rate data was reported at 0.500 % pa in 2014. This stayed constant from the previous number of 0.500 % pa for 2013. United Kingdom UK: Lending Interest Rate data is updated yearly, averaging 6.963 % pa from Dec 1967 (Median) to 2014, with 48 observations. The data reached an all-time high of 16.313 % pa in 1980 and a record low of 0.500 % pa in 2014. United Kingdom UK: Lending 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. Lending rate is the bank rate that usually meets the short- and medium-term financing needs of the private sector. This rate is normally differentiated according to creditworthiness of borrowers and objectives of financing. The terms and conditions attached to these rates differ by country, however, limiting their comparability.; ; International Monetary Fund, International Financial Statistics and data files.; ;

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.

The BBA Mortgage Rate in the UK refers to the average interest rate on mortgages offered by major banks, as reported by the British Bankers' Association.

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 United Kingdom: Interest rates on bank credit to the private sector: The latest value from 2014 is 0.5 percent, unchanged from 0.5 percent in 2013. In comparison, the world average is 11.28 percent, based on data from 135 countries. Historically, the average for the United Kingdom from 1967 to 2014 is 7.37 percent. The minimum value, 0.5 percent, was reached in 2010 while the maximum of 16.31 percent was recorded in 1980.

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 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

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]