Despite interest rates falling during the closing stages of last year, the average monthly mortgage cost has increased by 8.1% year on year, research from mortgage adviser Alexander Hall has revealed.
This is based on the average cost an 80% LTV mortgage with a 25-year term, which stands at 4.3%, up from 4.03%. Meanwhile the average house price has risen by 5.1% since January 2024.
Stephanie Daley, director of partnerships at mortgage advisor, 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.
“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.
“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 1st April this year.
“It’s always best to seek the advice of an expert mortgage advisor 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.”
For the average homebuyer a mortgage loan of £233,657 is required after placing a 20% deposit of £58,412.
The average buyer making a full mortgage repayment can expect to pay £1,272 per month, an increase of 8.1% or £95 per month.
This means that over the course of a year, today’s homebuyers will be £1,142 worse off compared to those who purchased this time last year.
