25/06/2026
To coincide with the result of the EU referendum on this day in 2016, research from L&C Mortgages shows the significant shift in interest rates in the intervening ten years, underlining the significant change that mortgage borrowers have faced.
Tracking the lowest rates from the top ten UK lenders shows the average two year re-mortgage rates for those with a 40% deposit have trebled since the referendum.
On this day in 2016 the average rate was just 1.52% but has now lifted to 4.61%. Average five year rates are now 4.66%, having more than doubled from 2.20% in 2016.
A £200,000 25 year repayment mortgage would cost £322 more per month, a rise of almost £3,870 more each year.
Homebuyers have seen similar hikes. The average two year purchase rate for those with a 10% deposit was just 2.48% in June 2016 but now clocks in at 4.93%. Five year rates have lifted to 4.84% from 3.29% in ten years.
Mortgage rates have risen significantly in recent years with a host of factors contributing to the shift. Borrowers have also experienced the effects of the pandemic, the consequent rise in inflation & periods of market volatility, which increased funding costs for lenders, such as the Mini Budget & conflict in Ukraine and West Asia.
If you have any questions regarding your current mortgage or need advice on an upcoming one, don't hesitate to contact us to speak to one of the team....
*Information from The Financial Reporter
*Your home may be repossessed if you do not keep up repayments on your mortgage
