Mortgage True Cost Index

Moneyfacts Mortgage True Cost Index

  • The Moneyfacts Mortgage True Cost Index tracks the change in the TRUE cost of mortgages in the UK.
  • We compare the whole mortgage market, fixed and variable rate, and include product numbers and product fees.

August Insight

  • The Moneyfacts Mortgage True Cost Index fell in August to 86.7.
  • The average rate of UK retail mortgages (including all fixed and variable rates and all LTVs) in August 2014 remained unchanged from July’s figure of 3.87%.
  • Average mortgage rates remained unchanged.
  • The number of fixed rate mortgage products on the market increased by 114 while variable products remained virtually unchanged.

Mortgage Market Commentary: August

Annual change

Up 1.3

Quarterly change

Up 1.2

Monthly change

Down 0.1

Average mortgage rate


Sylvia Waycot, Editor at

"It has been a quiet month with regard to any movement on mortgage rates, a reflection perhaps of a business-as-usual approach as the industry awaits an eventual BoE rate rise.

"Product numbers, however, continue to rise, with a combined increase in fixed products during June to August 2014 of 229."

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What is the Moneyfacts Mortgage True Cost Index?

This report was prepared by the Moneyfacts Insight Team of independent mortgage experts. The True Cost is calculated using over 3000 variable and fixed rate mortgage products. It combines the product fee with initial interest rate into a single percentage figure, based on an advance of £150K over the initial rate period or three years for term products.

The Moneyfacts Mortgage True Cost Index uses product numbers to weight the index towards the most commonly available mortgage types in that month. We believe by taking into account both product numbers, initial interest rates and product fees we have produced the most accurate measure of true mortgage cost in the UK. The Moneyfacts Mortgage True Cost values are indexed at 100 in Dec '12.