Recent commentary suggests a rise is unlikely. So instead we take the opportunity to provide a snapshot of how current outstanding mortgage rates compare with the past.
And, just in case rates do change, we attach an illustrative table showing how a notional quarter point change in the mortgage rate would affect typical monthly payments on mortgages of different sizes.
But please note that change in base rate would not necessarily feed through to a corresponding change in mortgage rates, as mortgage rates are influenced by a variety of factors. You can use the table to input different "before" and "after" rates if you wish, but we have taken 3.5% as the current typical rate for illustrative purposes
Key statistics for outstanding UK mortgages:
- Number of first mortgages in the UK: 11.4 million (of which 10.1 million are owner-occupied and 1.3 million are buy-to-let)
- Average outstanding mortgage: £109,110 (At end of 2010 Q4)
- The average outstanding mortgage rate (January 2011) was 3.50%. Average monthly payment on a £110,000 repayment mortgage at 3.50%: £556. Average monthly payment on a £110,000 interest-only mortgage at 3.50%: £321
- The average outstanding mortgage rate over the last ten years was 5.15%
- Profile of existing mortgage holders: approximately 32% on fixed rates, 68% on variable rate products.
Key statistics for new UK mortgage lending:
- Average first-time buyer mortgage (Dec 2010): £103,500
- Average home-mover mortgage (Dec 2010): £130,286
- Average new mortgage for house purchase (Dec 2010): £118,775
- Average gross income for first-time buyer (Dec 2010): £32,773
- Average gross income for home mover (Dec 2010): £47,093
- Average proportion of income first-time buyers spend on mortgage interest payments (Dec 2010): 12.9%
- Average proportion of income home movers spend on mortgage interest payments (Dec 2010): 9.5%
- Proportion of all borrowers taking out a fixed-rate mortgage (Dec 2010): 53%
- Proportion of borrowers taking out a tracker mortgage (Dec 2010): 32%
