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Average Mortgage Rates and Loans UK 2023

Average Mortgage Interest Rates

Mortgage rates vary by many factors, such as the duration of the loan or fixed period, the loan to value ratio (LTV), if the rate is fixed or variable, whether the loan is for a property that will be rented out or lived in by the owner, and more.

Regardless, mortgage rates are on the rise—in particular, fixed-rate mortgages. The chart below shows rates for 2-year fixed (green) and variable (purple) rate mortgages, across three different LTV ratios.

Chart showing 2 year mortgage rates UK

Interestingly, the rates have largely converged across LTV ratios for mortgages. Banks used to charge quite a bit less (e.g. up to 2.5 percentage points less in 2021) for loans with lower LTV ratios, because a smaller LTV is less risky for the lender. But now lenders are charging almost the same rate regardless of LTV ratio, especially for variable rate loans. In November 2022, there was only a 0.09% difference between a 95% LTV and 75% LTV 2-year variable rate loan (average rates of 4.0% and 3.91%, respectively).

As a result, rates are up even more for mortgages with a lower LTV ratio. For example, the interest rate on fixed, 2-year 75% LTV loans are now 3.9X the rate from a year ago (average of 1.5% in November 2021 to 6.0% in November 2022).

95% LTV90% LTV75% LTV95% LTV90% LTV75% LTV
How much higher are rates now?1.2X1.6X2.3X2.3X3.1X3.9X

And very oddly, the average rate for a 90% LTV (4.12%) was actually higher than the rate on a riskier 95% LTV (4.0%) for 2-year variable loans in November 2022. You can see these figures bolded in the table above.

Average Mortgage Loan Size

At the end of 2022, the average mortgage loan had peaked just above £200,000 for the first time. In the third quarter of 2022 (June 2022 - September 2022), £84,805,000,000 was lent to individuals over 423,865 properties—an average of £200,075 per loan. That's a rise of 13% in just two years.

Chart showing average mortgage loan size UK

Methodology & Data

NimbleFins analysed data from the Bank of England to determine average mortgage loan sizes as well as compare mortgage interest rates.

The following Bank of England data sets were used for the interest rate figures:

2-year mortgage rates95% LTV90% LTV75% LTV

To determine the average mortgage size, we used two metrics to approximate the average loan:

  • amount of total sterling secured gross lending to individuals
  • total sterling number of transactions with individuals secured on residential property

Note, the resulting figures will not be exact, since the total lending figure does not exclusively reflect mortgages, however the vast bulk of secured lending will be for homes.

DateValue of secured lending to individuals (£millions)# of residential mortgages per quarterAverage mortgage size
31 Mar 13£34,055265,912£128,069
30 Jun 13£42,454322,108£131,801
30 Sep 13£49,914361,179£138,197
31 Dec 13£51,294357,481£143,487
31 Mar 14£46,208312,747£147,749
30 Jun 14£51,419339,361£151,517
30 Sep 14£54,985367,819£149,489
31 Dec 14£50,698350,197£144,770
31 Mar 15£45,017302,785£148,676
30 Jun 15£52,671349,743£150,599
30 Sep 15£61,778393,688£156,921
31 Dec 15£62,303390,141£159,694
31 Mar 16£63,322391,776£161,628
30 Jun 16£57,496369,294£155,692
30 Sep 16£63,898392,035£162,991
31 Dec 16£61,830380,648£162,434
31 Mar 17£59,941375,708£159,541
30 Jun 17£62,254390,761£159,315
30 Sep 17£69,091424,943£162,589
31 Dec 17£68,527424,918£161,271
31 Mar 18£61,289387,243£158,270
30 Jun 18£65,317406,458£160,698
30 Sep 18£71,620433,065£165,379
31 Dec 18£70,493429,597£164,091
31 Mar 19£62,146388,369£160,018
30 Jun 19£64,380393,143£163,757
30 Sep 19£70,975421,665£168,321
31 Dec 19£71,506424,506£168,445
31 Mar 20£64,711402,265£160,867
30 Jun 20£43,775270,182£162,020
30 Sep 20£61,495346,531£177,459
31 Dec 20£75,734413,212£183,281
31 Mar 21£82,447438,704£187,933
30 Jun 21£86,103445,146£193,426
30 Sep 21£71,606407,757£175,609
31 Dec 21£68,317377,846£180,806
31 Mar 22£74,211390,590£189,997
30 Jun 22£76,943392,175£196,196
30 Sep 22£84,805423,865£200,075