Could stability be returning to a previously unsettled mortgage market? In late January, Octane Capital revealed that average monthly mortgage repayments had fallen by 14% since the announcement of the September mini-Budget.
Prior to former chancellor Kwasi Kwarteng’s fiscal statement last year, a typical two-year fixed-rate mortgage, at 75% loan-to-value (LTV) with a 25% deposit and an interest rate of 3.6%, resulted in an average monthly mortgage repayment of £1,113. However, the tax-cutting mini-Budget accelerated already rising mortgage rates.
Action taken by current chancellor Jeremy Hunt in October and in the November Autumn Statement calmed markets, although home loans remained elevated.