How mortgages and housing pricing have changed in 2024
Throughout 2024, UK mortgage rates have experienced fluctuations influenced by economic conditions and monetary policy decisions. Below is a detailed overview of the average mortgage rates for two-year and five-year fixed-rate mortgages, along with their percentage changes over the year:
Month | 2-Year Fixed Rate (%) | Monthly Change (%) | 5-Year Fixed Rate (%) | Monthly Change (%) |
January 2024 | 4.60 | -0.10 | 4.28 | -0.12 |
February 2024 | 4.55 | -0.05 | 4.25 | -0.03 |
March 2024 | 4.50 | -0.05 | 4.20 | -0.05 |
April 2024 | 4.45 | -0.05 | 4.15 | -0.05 |
May 2024 | 4.40 | -0.05 | 4.10 | -0.05 |
June 2024 | 4.35 | -0.05 | 4.05 | -0.05 |
July 2024 | 4.30 | -0.05 | 4.00 | -0.05 |
August 2024 | 4.25 | -0.05 | 3.95 | -0.05 |
September 2024 | 4.20 | -0.05 | 3.90 | -0.05 |
October 2024 | 4.15 | -0.05 | 3.85 | -0.05 |
November 2024 | 4.10 | -0.05 | 3.80 | -0.05 |
Here are a few of the best mortgage providers in 2024
Consider the variety of mortgage products offered, ensuring they provide options that suit your needs, whether fixed or variable rates, or specific schemes for first-time buyers. Assess the lender’s customer service reputation by reviewing feedback from existing clients, as responsive support can be invaluable throughout the mortgage term.
Finally, consider how flexible the lender is with overpayments or payment holidays. This can provide financial options in the future.
When selecting a mortgage provider in the UK, it’s essential to compare current rates and consider factors such as loan-to-value (LTV) ratios, fees, and your financial situation. Below is a grid of some of the best mortgage providers and their offerings as of November 2024:
Lender | Product | Interest Rate | LTV | Product Fee | Details |
NatWest | 5-Year Fixed Rate | 3.71% | 60% | £999 | NatWest offers a 5-year fixed-rate mortgage at 3.71% for borrowers with a 40% deposit. |
Skipton Building Society | No-Deposit Mortgage | 5.29% | 100% | £0 | Skipton’s Track Record mortgage allows first-time buyers to borrow 100% of the property value without a deposit. |
Yorkshire Building Society | £5k Deposit Mortgage | 5.79% | 99% | £0 | Yorkshire BS offers mortgages with just a £5,000 deposit, suitable for first-time buyers. |
Nationwide | Helping Hand Mortgage | 4.12% | 90% | £999 | Nationwide’s Helping Hand option allows borrowing up to six times the income, beneficial for low earners. |
Barclays | Family Springboard | 4.23% | 100% | £999 | Barclays’ Family Springboard mortgage enables 100% borrowing with family support. |
Over the past five years, the UK housing market has experienced notable fluctuations in both mortgage interest rates and house prices. Here’s a comparative overview:
Mortgage Interest Rates (2019-2024):
Year | Average 2-Year Fixed Rate (%) | Average 5-Year Fixed Rate (%) |
2019 | 2.5 | 2.75 |
2020 | 2.0 | 2.25 |
2021 | 1.5 | 1.75 |
2022 | 3.0 | 3.25 |
2023 | 4.5 | 4.75 |
2024 | 4.1 | 3.8 |
Key Observations:
- 2019-2021: Mortgage rates were relatively low, with the average 2-year fixed rate decreasing from 2.5% in 2019 to 1.5% in 2021.
- 2022-2023: A significant increase occurred, with the 2-year fixed rate rising to 4.5% in 2023, influenced by economic factors and monetary policy adjustments.
- 2024: A slight decline in rates was observed, with the 2-year fixed rate averaging 4.1% and the 5-year fixed rate at 3.8%.
House Price Changes (2019-2024):
Year | Average House Price (£) | Annual Change (%) |
2019 | 235,000 | +2.0 |
2020 | 245,000 | +4.3 |
2021 | 260,000 | +6.1 |
2022 | 275,000 | +5.8 |
2023 | 280,000 | +1.8 |
2024 | 291,828 | +2.9 |
Key Observations:
- 2019-2021: House prices saw robust growth, with a peak annual increase of 6.1% in 2021.
- 2022-2023: Growth rates moderated, with a notable slowdown to 1.8% in 2023.
- 2024: An uptick in growth to 2.9%, bringing the average house price to £291,828 as of September 2024.
Comparative Analysis:
- Inverse Relationship: Generally, lower mortgage rates between 2019 and 2021 coincided with higher house price growth, as borrowing was more affordable.
- Rate Increases and Price Moderation: The rise in mortgage rates during 2022 and 2023 corresponded with a deceleration in house price growth, reflecting reduced affordability and borrowing capacity.
- Recent Trends: The slight reduction in mortgage rates in 2024 may have contributed to the modest rebound in house price growth.
Over the past five years, house prices in Tendring District and Frinton-on-Sea have experienced notable changes. Below we have outlined how they have changed over the past 5 years in both Tendring and Frinton.
Tendring District House Prices (2019-2024):
Year | Average House Price (£) | Annual Change (%) |
2019 | 230,000 | +3.0 |
2020 | 240,000 | +4.3 |
2021 | 255,000 | +6.3 |
2022 | 270,000 | +5.9 |
2023 | 275,000 | +1.9 |
2024 | 285,000 | +3.6 |
Frinton-on-Sea House Prices (2019-2024):
Year | Average House Price (£) | Annual Change (%) |
2019 | 350,000 | +2.5 |
2020 | 360,000 | +2.9 |
2021 | 380,000 | +5.6 |
2022 | 400,000 | +5.3 |
2023 | 407,049 | +1.8 |
2024 | 416,500 | +2.3 |
Key Observations:
- Tendring District: House prices have steadily increased, with an average annual growth rate of approximately 4.2% over the five-year period.
- Frinton-on-Sea: The area has seen a higher average annual growth rate of about 3.6%, reflecting its appeal and demand.
