Research by Alexander Hall, which looked at the average monthly cost of a mortgage based on a 25-year mortgage term at 80% loan to value (LTV) based on average house price, found that the average mortgage rate stands at 4.3%, a jump from 4.03% last year.
The average cost of a home has also risen by 5.1% since January of last year to around £292,059.
These factors together mean that the average homebuyer needs a mortgage loan of £233,657 along with a £58,412 deposit.
This brings the average cost of a mortgage to £1,722 per month, a jump of £95 per month.
Stephanie Daley, director of partnerships at Alexander Hall, said: “A greater degree of stability returned to the property market in 2024 and we certainly saw a settling of the landscape with respect to the mortgage market.
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“However, despite two reductions to the base rate, we haven’t seen mortgage rates follow suit and, in fact, the monthly cost of a mortgage today sits higher than it did this time last year.”
She continued: “This is an important factor for homebuyers to be aware of, particularly now that many will be acting with haste in hopes of beating the stamp duty deadline, which expires on the 1 April this year.
“It’s always best to seek the advice of an expert mortgage adviser when looking to buy in any market conditions, as this will ensure you secure the very best mortgage available to you based on your financial position within the market.”
