Average mortgage interest rates in the UK 2000-2022

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 in 2022, resulting in higher mortgage rates. As borrowing costs get higher, demand for housing is expected to decrease, leading to slower house price growth and a potential market downturn.

Number of homes sold

After falling in 2020 due to the coronavirus (COVID-19) pandemic, both the number of residential properties sold and the gross value of mortgage lending surged in 2021. Of the plus one million transactions made across the UK in 2021, the majority of residential properties were sold in England.

What decides a mortgage?

For anyone trying to obtain a mortgage, they will want the lowest possible rates. For the lender, they will want to attract as many borrowers as possible by staying competitive, all the while trying to manage their risks with appropriate rates. In 2021, the top three mortgage lenders in the UK accounted for over 40 percent of the market.