A year review: 2019 mortgage rates

2019 was a good year for mortgage borrowers, with fierce competition between lenders resulting in rates across all loan-to-value (LTV) tiers falling throughout the year.

This year also saw four household names withdraw from the market, with AA Mortgages and Secure Trust Bank both withdrawing from the sector in February, while Tesco Bank pulled out of the sector in May and Sainsbury's Bank followed suit in September. Other big mortgage news this year was the growth in long-term mortgages available, which saw Virgin Money launching the first 15 year mortgage available to consumers since 2009 in July. Competition within the 10 year mortgage sector was also highly competitive and we recently reported a year-on-year fall in average 10 year rates.

Since January 2019, the lowest available two year fixed mortgage rates on all LTVs have fallen. The lowest rate available on a 95% LTV fell from 2.69% in January to 2.59% in November. Today the lowest rate on a two year fixed 95% LTV mortgage comes from Newcastle Building Society offering 2.59% fixed until 28 February 2022. Meanwhile, the lowest 75% LTV deal fell from 1.48% in January to 1.19% in November and the lowest rate on a 60% LTV fell from 1.39% to 1.05%.

Reviewing data on all two year fixed average rates throughout the year, we found that the highest average rate available on a 50% or 60% LTV mortgage was 2.47%, which held for 10 days in August, while the lowest average rate was 1.77% which prevailed for more than two weeks in December. Those looking for a two year fixed deal on a 75% or 80% LTV this year would have found the average highest rate was 2.50%, which lasted for 15 days in January, while the lowest average rate was 2.23% – in place for just two days in November. Homeowners looking to borrow against a 95% or 100% LTV would have found that the highest average rate of 5.18% held for most of the year, while the lowest average rate of 3.22% existed for only one day in September.

For borrowers looking for a two year fixed mortgage, Halifax is offering the lowest rate of 1.17% on a 60% LTV. NatWest is currently offering the lowest rate of 1.25% for those looking for a 75% LTV, while Newcastle is offering the lowest rate of 2.59% for those looking for a 95% LTV.

The lowest five year fixed mortgage rates show a similar story to the two year rates, with rates on all LTVs falling throughout the year. The lowest rate available on a 95% LTV dropped from 3.37% in January to 2.75% in November, while the lowest rate available on a 75% LTV fell from 1.93% to 1.54%. The lowest rate available on a 60% LTV decreased from 1.79% available in January to 1.44% in November.

Analysing all average rates on five year fixed rate mortgages, we found that on a 50% or 60% LTV, the highest average rate this year was 2.64%, which held for just two days in April, while the lowest average rate of 2.07% was triggered in December. The highest average rate on a 75% or 80% LTV was 2.92% this year, which lasted for 10 days in January, while the lowest average rate was 2.51% for just two days in November. Over the year, the highest average rate on a 95% or 100% LTV was 4.82%, which held for 35 days in May and into June, but the lowest average rate of 3.42% lasted for eight weeks from October and into December.

The lowest rate on a five year fixed mortgage currently available in the charts for those looking for a 60% LTV comes from Halifax, which is offering 1.46%. Those looking for a 75% LTV can get the lowest rate of 1.56% also from Halifax, while those looking for a 95% will find the current lowest rate is 2.75% from Barclays Mortgage. 

While above has looked at how the mortgage rates have changed throughout 2019, it should also be noted that those who took out a two year fixed rate mortgage in December 2017, should consider remortgaging now. This is because research carried out by Moneyfacts.co.uk found that a borrower who took a two year fixed rate mortgage in December 2017 at what was then an average rate of 2.35% would find that today it would revert to an average rate of 4.89%, an increase of 2.54%. This would mean that on a £100,000 repayment mortgage over a 25-year term, the additional 2.54% would result in an additional monthly mortgage repayment of almost £130.