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Oct 28, 2022 | Mortgages & Financing

Average mortgage interest rates in the UK 2000-2022

In March 2020, the 10-year fixed mortgage rate was at its lowest quarterly value at 2.36 percent, about 1.85 percentage points lower than in September 2022. Since 2009, mortgage rates in the United Kingdom have been on a downward trend, which is a good news for first-time home buyers and those remortgaging their property. With inflation increasing, the Bank of England introduced several bank rate hikes in 2022, resulting in higher mortgage rates. As borrowing costs get higher, demand for housing is expected to decrease, leading to slower house price growth and a potential market downturn.

Number of homes sold After falling in 2020 due to the coronavirus (COVID-19) pandemic, both the number of residential properties sold and the gross value of mortgage lending surged in 2021. Of the plus one million transactions made across the UK in 2021, the majority of residential properties were sold in England.

What decides a mortgage? For anyone trying to obtain a mortgage, they will want the lowest possible rates. For the lender, they will want to attract as many borrowers as possible by staying competitive, all the while trying to manage their risks with appropriate rates. In 2021, the top three mortgage lenders in the UK accounted for over 40 percent of the market.

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