Mortgage rates in the UK

[Brendan Burgess]

Here is a selection of average mortgage rates in the UK from the[broken link removed]

And just in case you think the rates are lower because they offer lower deposit rates, here is a selection of the deposit rates

 

[Sarenco]

It's interesting to note the spread between the average SVR (4.51%) and LTV mortgages in the UK.

If that was replicated here we would have average SVRs of 6%+!

In relative terms, SVRs are far more extreme in the UK and yet receive very little media comment or attention.

 

[ClubMan]

Couldn't that observation be put another way - i.e. that even our LTV rates are (arguably too) high here?

 

[Sarenco]

Yes, you could certainly look at it that way - that our LTV rates are too high. Personally I don't think it would be appropriate from a societal perspective for our lenders to further increase SVRs just so they could charge lower rates on low LTV mortgages, which is why I have argued for the setting of a cap on the rate of interest that can be charged on any mortgage.

 

[Sarenco]

It's interesting that BOI's 2-year fixed rate mortgage @ 3.75% for LTVs in excess of 80% is almost identical to the average 2-year fixed rate mortgage in the UK for LTVs up to 90% @ 3.74%.