Most Popular
1. It’s a New Macro, the Gold Market Knows It, But Dead Men Walking Do Not (yet)- Gary_Tanashian
2.Stock Market Presidential Election Cycle Seasonal Trend Analysis - Nadeem_Walayat
3. Bitcoin S&P Pattern - Nadeem_Walayat
4.Nvidia Blow Off Top - Flying High like the Phoenix too Close to the Sun - Nadeem_Walayat
4.U.S. financial market’s “Weimar phase” impact to your fiat and digital assets - Raymond_Matison
5. How to Profit from the Global Warming ClImate Change Mega Death Trend - Part1 - Nadeem_Walayat
7.Bitcoin Gravy Train Trend Forecast 2024 - - Nadeem_Walayat
8.The Bond Trade and Interest Rates - Nadeem_Walayat
9.It’s Easy to Scream Stocks Bubble! - Stephen_McBride
10.Fed’s Next Intertest Rate Move might not align with popular consensus - Richard_Mills
Last 7 days
S&P Stock Market Trend Forecast to Dec 2024 - 16th Apr 24
No Deposit Bonuses: Boost Your Finances - 16th Apr 24
Global Warming ClImate Change Mega Death Trend - 8th Apr 24
Gold Is Rallying Again, But Silver Could Get REALLY Interesting - 8th Apr 24
Media Elite Belittle Inflation Struggles of Ordinary Americans - 8th Apr 24
Profit from the Roaring AI 2020's Tech Stocks Economic Boom - 8th Apr 24
Stock Market Election Year Five Nights at Freddy's - 7th Apr 24
It’s a New Macro, the Gold Market Knows It, But Dead Men Walking Do Not (yet)- 7th Apr 24
AI Revolution and NVDA: Why Tough Going May Be Ahead - 7th Apr 24
Hidden cost of US homeownership just saw its biggest spike in 5 years - 7th Apr 24
What Happens To Gold Price If The Fed Doesn’t Cut Rates? - 7th Apr 24
The Fed is becoming increasingly divided on interest rates - 7th Apr 24
The Evils of Paper Money Have no End - 7th Apr 24
Stock Market Presidential Election Cycle Seasonal Trend Analysis - 3rd Apr 24
Stock Market Presidential Election Cycle Seasonal Trend - 2nd Apr 24
Dow Stock Market Annual Percent Change Analysis 2024 - 2nd Apr 24
Bitcoin S&P Pattern - 31st Mar 24
S&P Stock Market Correlating Seasonal Swings - 31st Mar 24
Here's a Dirty Little Secret: Federal Reserve Monetary Policy Is Still Loose - 31st Mar 24
Tandem Chairman Paul Pester on Fintech, AI, and the Future of Banking in the UK - 31st Mar 24
Stock Market Volatility (VIX) - 25th Mar 24
Stock Market Investor Sentiment - 25th Mar 24
The Federal Reserve Didn't Do Anything But It Had Plenty to Say - 25th Mar 24

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

UK Mortgages Five Years of Historic Low BOE Interest Rate Analysis

Housing-Market / Mortgages Mar 04, 2014 - 10:43 AM GMT

By: MoneyFacts


Thursday is expected to mark the fifth year of the historically low BoE base rate of 0.5%. 

Moneyfacts has analysed the lowest mortgage rates available in March 2009 against today’s equivalents.

The table below shows the lowest mortgage rate five years ago for 60% LTV was 2.99% compared to today’s equivalent mortgage, which charges just 1.48%. After working out the true cost of the mortgage including fees and introductory offers and based on a £150,000 mortgage over 25 years, today’s borrower is saving almost £800 (£788.96).

This saving falls into insignificance when compared to that of the first time buyer at 90% LTV. Five years ago the best rate that could be found was 5.99%. Today that has fallen to 3.45%, making a true cost saving of £5,046.88 over the two year term.

Sylvia Waycot, Editor at, said:

“In 2009, no one would have dreamed that mortgage rates would fall to their present low and stay that way for five years.    .

“The saving on a two year mortgage today compared to 2009 is literally thousands of pounds for a first time buyer.     

“However, wonderful though it is to be paying less for a mortgage, the current base rate is not the norm and rates will rise eventually. First time buyers particularly need to be aware of over stretching themselves financially and the new rules due to start in April that ensure lenders make sure potential borrowers can afford a rate rise will help with this.  

 “Of course, had it not been for the Help to Buy initiative, first time buyer rates would not be looking so good, as for the majority of the past five years this category of borrower has been shunned by lenders as far too risky.        
“It is only now that the mortgage market, which has been closed for five years to all but the 60% market, is once again open for business.” - The Money Search Engine is the UK's leading independent provider of personal finance information. For the last 20 years, Moneyfacts' information has been the key driver behind many personal finance decisions, from the Treasury to the high street.

© 2005-2022 - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.

Post Comment

Only logged in users are allowed to post comments. Register/ Log in