Mortgages – current rates and what you need to know


30 Jun Mortgages – current rates and what you need to know

If you’re dreaming of owning a home in Colnbrook, Slough, one of the most crucial aspects to consider is the current mortgage rates. The landscape of mortgage products is constantly changing, which is why we keep a close eye on average rates.

If you’re looking for a property to buy in Slough and the surrounding area, make sure you give the leading estate and lettings agents in Colnbrook a call on 01753 683000or email us and we’ll help you find your next place to call home.

This blog looks into the current state of UK mortgage rates (based on data from Rightmove).

Current mortgage rate trends

Recently, there have been significant discussions regarding Base Rate rises and their impact on mortgage rates. The Bank of England convenes every six weeks to determine whether the Base Rate should increase, decrease, or remain stable. The 22nd June saw the Base Rate rise to 5%, 0.5% up from the 4.5% in March.

According to Rightmove’s mortgage expert, Matt Smith, this has led to further increases in mortgage rates as the market adjusts to two sets of disappointing inflation numbers. However, there is hope that the pace of change will slow down, especially for five-year fixed-rate products, and stability might be on the horizon in the medium term.

Current UK mortgage interest rates

As of w/c 26th June, the average fixed-term mortgage rates for homebuyers with various loan-to-value (LTV) percentages were as follows:

For Homebuyers with 5-10% Deposits:

  • 95% LTV, 2-year fixed: 6.62% (0.26% increase from the previous week)
  • 95% LTV, 5-year fixed: 5.87% (0.06% increase from the previous week)
  • 90% LTV, 2-year fixed: 6.09% (0.21% increase from the previous week)
  • 90% LTV, 5-year fixed: 5.67% (0.20% increase from the previous week)

For Homebuyers with 15-25% Deposits:

  • 85% LTV, 2-year fixed: 5.93% (0.21% increase from the previous week)
  • 85% LTV, 5-year fixed: 5.50% (0.19% increase from the previous week)
  • 75% LTV, 2-year fixed: 5.77% (0.19% increase from the previous week)
  • 75% LTV, 5-year fixed: 5.36% (0.17% increase from the previous week)

For Homebuyers with 40% Deposits:

  • 60% LTV, 2-year fixed: 5.67% (0.26% increase from the previous week)
  • 60% LTV, 5-year fixed: 5.26% (0.21% increase from the previous week)

(Stats from Rightmove)

How much can you borrow for your dream home in Colnbrook, Slough?

The amount you can borrow with a mortgage depends on your affordability assessment, and your interest rate is determined by your loan-to-value (LTV) ratio. LTV is expressed as a percentage and represents the size of the mortgage relative to the property’s value. The higher your deposit (lower LTV), the better your interest rate is likely to be.

An online mortgage calculator is a great tool to get a quick estimate of how much you could borrow. Alternatively, you may have seen the term Mortgage in Principle used a lot in more recent times, getting a Mortgage in Principle will bring you one step closer to securing a mortgage offer as the lender will already have your information when you come to get the final mortgage agreement.

Remember, your ability to borrow depends on various factors, including your deposit size and affordability. So, do your research, use available tools like mortgage calculators, and speak to our expert team here at S John Homes to ensure that you make well-informed decisions on your homeownership journey.

Purchasing a home, whether it is your first or tenth, it is a significant milestone. Understanding the current mortgage rates is a vital step towards achieving your dreams of homeownership. Our best advice is to stay informed with the market, compare options that are out there and take advantage of the resources available to help you to secure the best possible mortgage deal for your future home.

Moving is a busy and exciting time and we’re here to make sure the experience goes as smoothly as possible by giving you all the help you need under one roof.

Contact Us

If you would like to speak to someone about your property, or if you are considering buying a property, for yourself or to let or you’re in need of finding rental property, we are the leading independent estate agents in Colnbrook. So, contact us on 01753 683000 or email us. You can also follow us on Facebook,  LinkedIn and Instagram.