Please see below this week’s Uswitch mortgage rates update. Here you’ll find Uswitch mortgage expert, Kellie Steed’s, breakdown of the average mortgage rates in the UK as of yesterday (18th of October 2023) and her thoughts on this week’s key mortgage news.
Kellie Steed, Uswitch mortgage expert, covers this week’s key mortgage news:
Managing buy-to-let mortgage rates
“As with many borrowers, buy-to-let investors are feeling the impact of mortgage rate increases over the past couple of years. According to Uswitch data, the average rate for a two-year fixed-rate buy-to-let mortgage (75% LTV) currently stands at 6.28%.
“Rises in mortgage costs have also impacted tenants, with Zoopla reporting last month that rents for new lets are up 10.5% over the past year. However, demand for rental properties remains high, with it continuing to outstrip supply.
“For landlords who are due to remortgage soon, or those interested in purchasing a buy-to-let, there are some things you can do to try and manage your mortgage costs:
- “Put down a larger deposit if possible – most buy-to-let mortgages require a deposit of at least 20-25%, but if you can put down 40% or more, you may get access to better rates.
- “Consider what type of mortgage rate works best for you – a fixed-rate mortgage can make it easier to budget as you know what you need to pay for a set period of time. But you won’t benefit if rates fall. With a variable-rate mortgage, you usually have a lower rate to start with and your payments may drop if rates fall. But you need to be prepared for higher repayments if rates rise.
- “Speak to a whole-of-market broker – there can be a big difference in rates on different deals in the current market, so if you only look at options from one lender, you might be missing out on a better deal. An independent mortgage adviser can look at deals from banks and building societies across the market to find the cheapest one for you.”
Average mortgage rates across the big six lenders*:
| Rates (9th October) | Rates (17th October) | % change from last week | |
| Two-year fixed-rate mortgage (75% LTV) | 5.7% | 5.69% | -0.01% |
| Five-year fixed-rate mortgage rate (75% LTV) | 5.18% | 5.14% | -0.04% |
| Two-year variable-rate mortgage rate (75% LTV) | 5.84% | 5.84% | – |
| Two-year fixed-rate mortgage (90% LTV) | 6.1% | 6.09% | -0.01% |
| Standard variable rate (SVR) | 7.99% | 7.99% | – |
*Nationwide, Santander, HSBC, Halifax, Barclays Bank, NatWest, and Lloyds Bank.
Average mortgage rates:
| Rates (9th October) | Rates (17th October) | % change from last week | |
| Two-year fixed-rate mortgage (75% LTV) | 6.48% | 6.48% | – |
| Five-year fixed-rate mortgage rate (75% LTV) | 6.12% | 6.20% | +0.08% |
| Two-year variable-rate mortgage rate (75% LTV) | 5.94% | 5.94% | – |
| Two-year fixed-rate mortgage (90% LTV) | 6.25% | 6.215% | -0.035% |
| Standard variable rate (SVR) | 8.74% | 8.74% | – |
Buy-to-let mortgage rates:
| Two-year fixed buy-to-let (75% LTV) | Rates (9th October) | Rates (17th October) | Lenders | % change from last week |
| Average across all lenders | 6.28% | 6.28% | – | – |
| Average across big six lenders | 6.08% | 6.08% | – | – |
| Lowest rates across all lenders | 4.44% | 4.44% | Landbay | – |
| Lowest rates across big six lenders | 5.79% | 5.79% | Santander UK PLC | – |
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