27 Jul A quick look at the latest mortgage interest rates

As the leading estate agents in Wentworth and Virginia Water, we recognise the significance of staying up-to-date with the latest market developments when you are considering buying your next home. We believe that a well-informed buyer is an empowered one, and therefore, so that you can make sound and informed decisions regarding your next home purchase, we recommend keeping an eye on the ever-changing mortgage interest rates.

If you’re thinking of moving, renting or buying, and want some home inspiration take some time to browse our properties available in Virginia Water and the surrounding areas. If you have any questions, you can also visit our award-winning website or call us on 01344 843000 and email us.

The products on the market are constantly changing, if you’re considering buying with a mortgage we highly recommend getting a Mortgage in Principle in place so that you can get a clearer picture of your borrowing capabilities. Below we take a quick look at what the latest average mortgage rates are and give you a brief outline of the mortgage types available.

CURRENT AVERAGE MORTGAGE RATES

For homebuyers with the smaller 5-10% deposits, the 95% LTV 2-year fixed mortgage currently sits at 6.98%*. Similarly, the 5-year fixed mortgage at 95% LTV currently stands at 6.34%. Those opting for a 90% LTV 2-year fixed mortgage face a more substantial increase, as the average rate currently sits at 6.79%. The 5-year fixed mortgage at 90% LTV also experienced a rise in rates, currently standing at 6.24%.

For homebuyers with slightly more of a deposit at 15-25%, the average fixed-term mortgage rates have seen some adjustment. The 85% LTV 2-year fixed mortgage currently sits at 6.67%. The 5-year fixed mortgage at 85% LTV also experienced a rise in rates this week, currently standing at 6.18%. Meanwhile, for a 75% LTV, the average rate for a 2-year fixed mortgage currently sits at 6.46%. The 5-year fixed mortgage at 75% LTV currently stands at 6.00%.

Lastly, for homebuyers with much bigger 40% deposits, the average fixed-term mortgage rates also experienced very slight adjustments. The 60% LTV 2-year fixed mortgage currently sits at 6.38%. The 5-year fixed mortgage at 60% LTV currently stands at 5.90%.

Mortgage rates change weekly, it is always good to keep an eye on the current rates while you’re considering your next move. We would consider these values to be the peak of it and the good news for anyone considering a new mortgage or changing their mortgage is that the rates should begin to come down as lenders start to look at their existing packages; and start to slowly reduce the rates while being cautious of unexpected economic changes.

*Source of data for the above stats: Rightmove/Mortgage rates provided by Podium, based on 95% of the mortgage market, with all rates based on products with a circa £999 fee. 25/07/2023

UNDERSTANDING YOUR MORTGAGE OPTIONS

When considering a mortgage, it’s essential to understand the different types of mortgages available to make an informed choice for what is right for you at this moment in time. Here is a quick overview of the types of mortgages available:

Fixed-rate mortgages, these offer stability and predictability, as the interest rate remains constant for a specified term, ensuring consistent monthly payments. On the other hand, Variable-Rate mortgages have fluctuating interest rates, which can change over time based on reference rates such as the Base Rate, resulting in potential changes in monthly payments.

Tracker mortgages, a type of variable-rate mortgage, follow a specific benchmark, such as the Base Rate plus a set percentage, leading to adjustments in mortgage interest rates as the benchmark changes. Offset mortgages, on the other hand, allow you to link your savings and current accounts to your mortgage, offsetting the balances against your mortgage debt and reducing the interest charged.

Lastly, buy-to-let mortgages are specifically designed for purchasing properties to be rented out, with different criteria and interest rates compared to residential mortgages.

Your personal situation will determine which mortgage is right for you. With any borrowing, you’re more likely to get a better rate with a bigger deposit. If you need advice on what the best mortgage for you is, or have any questions regarding the types of mortgages currently available, speak to our expert team today.

The amount you can borrow with a mortgage depends on an affordability assessment, with your deposit size or LTV ratio influencing your interest rate. A larger deposit generally results in a lower LTV and vice versa. To get an estimate of how much you could borrow, consider using an online mortgage calculator.

For a more personalised result and to move closer to obtaining a mortgage offer, you can apply for a Mortgage in Principle, something we strongly recommend doing to put yourself in a better position before you move.

CONCERNED ABOUT MAKING A MOVE NOW?

The driving force behind moving should be that buying property is a medium to long term investment, especially as statistically any home owner who has had their home for 10years or more will have seen a significant increase in the value of their property. The current situation where economic factors have been pushing up rates to combat inflation shouldn’t be seen as a barrier to making a property purchase.

The wider economic backdrop can move fast. If you are thinking of moving, property experts have said not to put a hold on your plans as buying a home with a mortgage can take anywhere between 3 to 9 months and a lot can change in that time.

We are seeing many buyers moving very quickly and homes selling and completing in just a couple of months. The number of buyers’ vs property available in the area is still high with most competing on price to secure their next home in time for autumn.

If you’re not sure what your current home is worth, you can have your home valued by our expert team for free today, visit our website here or contact the office and we will be happy to visit and conduct a free Valuation for you. Knowing the value of your own home can help to understand the likely amount you’ll sell for and how much you may need as a mortgage for your next home.

GET IN TOUCH

If you are thinking of moving in or out of the area, make sure you take a look at our amazing catalogue of properties for sale in Virginia Water and the surrounding areas. If you’d like to speak to someone about properties to let in Virginia Water, a member of our expert team would be happy to help. You can call us on 01344 843000 or email us. You can also follow us on Facebook, Twitter, Instagram, and LinkedIn.