Average mortgage interest rates in the UK 2000-2024, by quarter and type

Mortgage rates increased at a record pace in 2022, with the 10-year fixed mortgage rate doubling between March 2022 and December 2022. With inflation increasing, the Bank of England introduced several bank rate hikes, resulting in higher mortgage rates. In September 2023, the average 10-year fixed rate interest rate reached 5.1 percent. As borrowing costs get higher, demand for housing is expected to decrease, leading to declining market sentiment and slower house price growth.How have the mortgage hikes affected the market? After surging in 2021, the number of residential properties sold declined in 2022, reaching close to 1.3 million. Despite the number of transactions falling, this figure was higher than the period before the pandemic. The falling transaction volume also affected mortgage borrowing. In 2023, the value of new mortgage loans fell year-on-year for three quarters in a row. How are higher mortgages affecting homebuyers? Homeowners with a mortgage loan usually lock in a fixed rate deal for two to ten years, meaning that after this period runs out, they need to renegotiate the terms of the loan. Many of the mortgages were taken out during the period of record-low mortgage rates and are likely to face notable increases in their monthly repayment. About five million homeowners are projected to see their deal expire by the end of 2026. About two million of these loans are projected to experience a monthly payment increase of up to 199 British pounds by 2026.

2022年，抵押贷款利率以创纪录的速度攀升，3月与12月间，10年期固定抵押贷款利率翻倍。伴随着通货膨胀的加剧，英格兰银行推出了多次银行利率上调措施，导致抵押贷款利率上升。至2023年9月，平均10年期固定利率达到5.1%。随着借贷成本的提升，预计住房需求将有所下降，进而引发市场情绪的下降和房价增长的放缓。抵押贷款利率的上升如何影响市场？在2021年激增之后，2022年住宅房产的销售数量有所下降，接近130万套。尽管交易量下降，但这一数字仍高于疫情之前的水平。下降的交易量也影响了抵押贷款的借贷。2023年，新抵押贷款的贷款价值连续三个季度同比下跌。更高的抵押贷款利率如何影响购房者？拥有抵押贷款的房主通常会在两到十年内锁定固定利率的贷款方案，这意味着在此期间结束后，他们需要重新协商贷款条款。许多贷款是在历史低点利率期间发放的，预计将面临每月还款额显著增加的情况。预计到2026年底，约500万房主的贷款方案将到期。其中预计约有200万贷款在2026年之前每月还款额将增加至199英镑。