UK AVERAGE MORTGAGE RATES REMAIN HISTORICALLY LOW

New data released by the Bank of England has shown the cost of borrowing remains historically low at just 2.09%. The rate has remained unchanged since the start of 2021 with gross mortgage lending in March hitting its highest ever monthly total at £35.6billion.

Borrowing rose by a net £11.8 billion, the biggest increase since the series began in April 1993, thought to be driven by the Chancellor Rishi Sunak’s extended tax cut for property purchases.

Mortgage approvals remain over 20% higher than the long term (5 year average) as UK residents’ interest in moving home continues.

At the beginning of May, the Bank’s Monetary Policy Committee voted unanimously to maintain rates at 0.1% - the next review is 16 June.