Market Update: What Mortgage Rates Are Available Right Now?

The Bank Of England’s (BofE) current policy of raising its base rate to combat inflation shows no signs of changing any time in the near future. Despite this, mortgage rates continue to normalise and, in some cases, are actually reducing.

More than six months after then-Chancellor Kwasi Kwarteng’s mini-budget caused significant turmoil in the market, this will most certainly be good news for anyone either with a mortgage, looking to remortgage or first-time buyers.

So, how are mortgage rates looking right now?

Mortgage rates available at the moment

The table below provides an illustration of what fixed-rate mortgages are available at the time of writing (April 2023):

Mortgage Lender	Rate	Mortgage Type	Product Details	Lender’s Current SVR*
Santander	3.94%	5-year Fixed Rate	60% LTV, £999	7.25%
Coventry Building Society	4.11%	3-year Fixed Rate	65% LTV, £999	6.74%
Barclays	4.15%	2-year Fixed Rate	75% LTV, £999	7.74%
HSBC	4.54%	2-year Fixed Rate	80% LTV,  £999	6.99%
NatWest	4.89%	2-year Fixed Rate	80% LTV, No Fee	7.24%
Halifax	5.29%	2-year Fixed Rate	Up to 95% (Max) LTV, £999	7.74%

 

* SVR = Standard Variable Rate / Follow-on Rate

These fixed-rate offers represent a slight reduction typically of between 0.2%-0.3% from what most mortgage lenders were offering a few months prior. This signifies a growing belief within the market that any further base rate rises by the BofE in the immediate future will be minimal and are close to reaching their peak for now.

Are variable rates a good option right now?

They could be. This really depends on how bold you want to be with your predictions of where the BofE base rate will be in one, two or three years time as this will influence what your repayments will be with a variable rate – particularly tracker rate mortgages.

As an example, HSBC currently offers a 2-year tracker rate mortgage with an interest rate of between 4.54%-5.25% depending on your loan-to-value (LTV). The LTV range for these deals is between 60%-90% – the lower your LTV is, the lower the interest rate – and the fees are all the same – £999.

The interest rates for Barclays 2-year tracker mortgages are currently between 4.51%-5.35% (LTVs – 60%-90%. Fees – £999).

So, if the BofE base rate begins to fall at some point during the 2-year term of these deals then they could work out to be cheaper overall than the fixed-rate options in the table above.

Is it worth staying on a standard variable rate?

Most experts will tell you “no”, not unless you absolutely have to. The standard variable rate (SVR) should only ever really be seen as a holding rate whilst you’re in between mortgage deals. And right now – the sooner you can move onto a new deal, the better it will be for your finances as most mortgage lenders current SVRs are the highest they’ve been for over fifteen years.

This is highlighted by the far-right column in the table above where you’ll see the SVR range for the mortgage lenders mentioned is currently between 6.74%-7.74%. Across the market right now some mortgage lenders SVRs are even as high as between 8%-8.85%.

How Online Money Advisor can help

Whether you’re thinking of moving or your existing deal is ending at some point in the next few months, the shrewd move would be to speak first with an experienced mortgage broker about all the options available to you – and that’s where we can be of assistance.

Our unique broker-matching service is designed to match you with the right mortgage broker equipped to deal with your specific set of circumstances. You can either give us a call on 0808 189 0463 or get in touch and we’ll arrange for an advisor we work with to contact you straight away.

All the above rates and terms mentioned in this article are correct at the time of writing (April 2023). These rates are subject to change at the lender’s discretion at any time.