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Michelle Monck

Michelle Monck

Consumer Finance Expert
Published: 20/04/2020

Borrowers that are due to remortgage soon could see their mortgage payments drop by hundreds of pounds each month thanks to recent reductions in mortgage rates.
The average rate for a five-year fixed mortgage at 90% loan-to-value (LTV) in April 2015 was 4.49%. The equivalent average rate on 17 April 2020 was 2.75%. A mortgage of £200,000 over 25 years at 4.49% would have cost £66,631 in mortgage payments across the full five years. Now the same five-year mortgage will be £11,274 cheaper over the five-year period.
There are also significant savings to be made at lower LTVs too, the average rate of a 75% LTV mortgage in April 2015 was 3.11%, last Friday it was 2.26%. A £200,000 mortgage over a 20-year term would save £5,019 in lower mortgage payments.
All the average rates for five-year fixed mortgages of any LTV band have reduced from April 2015 compared to April 2020. The greatest change has been for 90% LTV mortgages with a reduction of 1.74%, from 4.49% to 2.75%. The lowest reduction is for 70% LTVs reducing from 3.09% to 2.61%.
Those with tracker mortgages may see a slightly different picture with reduced availability of products and fewer reductions in comparative average rates. The biggest average rate reduction for two-year tracker mortgages is 0.28% at 75% LTV, while 90% LTV tracker mortgages have increased in average rate from 2.10% to 2.16%. Those borrowers wanting to take another two-year tracker at 75% LTV with a 20-year term, will see a modest saving of £1,568 over the two-year duration of the deal.

Borrowers can use our mortgage repayment calculator to see how their monthly payments could reduce by moving to a lower mortgage rate.

Is it easy to remortgage right now?

There have been reports of delays in remortgages due to the impacts of Coronavirus on lenders ability to process mortgages and complete valuations. We reported recently how all the biggest mortgage lenders are now using automated valuations where possible for their valuations. Conveyancing firm LMS has also reported that instructions for valuations for remortgages have started to stabilise, with remortgage completions 22% higher than week commencing 23 March.
A mortgage broker will know which lenders use automated valuations and if the properties they will accept this for. In addition, they can help to identify where borrowers can make the greatest savings on their mortgage payments.

Want to find the best remortgage rates?

The current best remortgage fixed rate at 60% LTV is 1.19%, increasing to 1.44% for a five-year fixed deal. Read more in our weekly round-up of all the best mortgage rates.


Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time. Links to third parties on this page are paid for by the third party. You can find out more about the individual products by visiting their site. will receive a small payment if you use their services after you click through to their site. All information is subject to change without notice. Please check all terms before making any decisions. This information is intended solely to provide guidance and is not financial advice. Moneyfacts will not be liable for any loss arising from your use or reliance on this information. If you are in any doubt, Moneyfacts recommends you obtain independent financial advice.

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