The Base Rate remains the same at 5.25% – what do Mortgages Rates look like today?

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30 Sep The Base Rate remains the same at 5.25% – what do Mortgages Rates look like today?

If you’re considering buying your next home in Colnbrook, Slough, one of the most critical factors to consider is the ever-changing world of mortgage rates. The mortgage market is dynamic, and it’s essential to stay informed about the latest developments.

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.

In this blog post, we bring you the current state of mortgage rates in the UK (with data from Rightmove).

The current landscape of Mortgage Rates

Recently, there have been extensive discussions revolving around The Bank of England (BoE) Base Rate fluctuations and how they can influence mortgage rates. The BoE convenes every six weeks to make decisions regarding the Base Rate—whether it should rise, fall, or remain stable. As of 21st September, the Base Rate was held steady at 5.25%, following 14 consecutive increases since December 2021. The impact of interest rates on mortgages is significant, and this recent development brings positive news for both current homeowners and those keen to enter the property market.

Current UK Mortgage Interest Rates

As of the week commencing 26th September 2023, the average fixed-term mortgage rates for prospective homebuyers, classified by various loan-to-value (LTV) percentages, are as follows:

For Homebuyers with 5-10% Deposits:

  • 95% LTV, 2-year fixed: 6.41% (reflecting a -0.14% change from the prior week)
  • 95% LTV, 5-year fixed: 5.87% (reflecting a -0.10% change from the prior week)
  • 90% LTV, 2-year fixed: 6.33% (reflecting a -0.06% change from the prior week)
  • 90% LTV, 5-year fixed: 5.71% (reflecting a -0.11% change from the prior week)

For Homebuyers with 15-25% Deposits:

  • 85% LTV, 2-year fixed: 6.17% (reflecting a -0.07% change from the prior week)
  • 85% LTV, 5-year fixed: 5.60% (reflecting a -0.09% change from the prior week)
  • 75% LTV, 2-year fixed: 5.89% (reflecting a -0.08% change from the prior week)
  • 75% LTV, 5-year fixed: 5.35% (reflecting a -0.10% change from the prior week)

For Homebuyers with 40% Deposits:

  • 60% LTV, 2-year fixed: 5.72% (reflecting a -0.10% change from the prior week)
  • 60% LTV, 5-year fixed: 5.16% (reflecting a -0.10% change from the prior week)

(Stats from Rightmove)

As we move into autumn, it’s expected that the mortgage market will maintain its stability, with rates continuing to slowly decrease. Additionally, we anticipate that more lenders will begin offering deals below the 5% mark, this could be a real turning point for first time buyers to get back to a serious search for their first home. If you’re a first-time buyer, or you’re thinking about selling and taking the next step on the property ladder, contact our expert team today on 01753 683000 or email us and we’ll help you find your next place to call home.

Determining your mortgage options

The amount you can borrow for your ideal home in Colnbrook, Slough, depends on your affordability assessment, and the interest rate is influenced by your loan-to-value (LTV) ratio. LTV is expressed as a percentage, indicating the size of the mortgage in relation to the property’s value. A higher deposit (lower LTV) typically leads to more favourable interest rates.

Using an online mortgage calculator is a valuable tool to estimate your borrowing capacity quickly. Alternatively, you may have encountered the term “Mortgage in Principle” frequently in recent times. Obtaining a Mortgage in Principle brings you closer to securing a mortgage offer, as the lender already possesses your information when you proceed with the final mortgage agreement.

Remember that your borrowing capacity depends on several factors, including the size of your deposit and your affordability. Therefore, it’s essential to conduct thorough research, leverage available resources like mortgage calculators, and consult with our expert team at S John Homes to make well-informed decisions on your journey to homeownership.

Whether you’re purchasing your first home or your tenth, the process marks a significant milestone. Gaining a clear understanding of the current mortgage rates is a pivotal step towards realising your homeownership dreams. We advise staying updated with market trends, comparing available options, and making the most of resources to secure the best possible mortgage deal for your future home.

The transition to a new home is an exciting yet busy time, and we’re here to ensure a seamless experience by providing comprehensive assistance all 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.