Edinburgh Property Market: Rightmove Mortgage Insights for 2024
The Edinburgh property market has seen some encouraging trends and data lately, the latest insights come from Rightmove with their analysis of mortgage rates.
Recent data from Rightmove shows a notable reduction in mortgage rates compared to last year, providing enhanced buying power and value for prospective homebuyers and those looking to remortgage who may have been priced out until recently.
Mortgage Rate Trends: A Closer Look
A key highlight is the drop in the average two-year fixed mortgage rate. It now sits at 4.93%, a significant decrease from 6.07% in 2023. This reduction offers potential buyers more affordable financing options. It may help those on the fence about entering the property market to make the leap.
Similarly, the average five-year fixed mortgage rate has fallen by 95 basis points. It now stands at 4.58%, down from 5.53%. For buyers seeking longer-term stability, this could price lending at a more affordable level. It offers purchasers the opportunity to lock in more favorable rates for the foreseeable future.
For those opting for an 85% loan-to-value (LTV) mortgage with a five-year fixed rate, the average rate has dropped to 4.61%. This is down from 5.60%. Additionally, the average 60% LTV five-year fixed rate now sits at 3.87%, a steep drop from last year’s 5.15%.
Impact on the Property Market
These figures indicate a broad trend of declining mortgage rates across different borrowing scenarios. This makes Edinburgh’s property market increasingly accessible.
First-time buyers stand to benefit as well. With average monthly payments now at £1,087, down from £1,187 a year ago, it’s clear that mortgage affordability is improving. This could be the push many need to take their first step onto the property ladder.
Opportunities for Homeowners
These favorable rates not only benefit buyers but also provide an excellent opportunity for existing homeowners to consider remortgaging. With lower rates available, homeowners can reduce their monthly payments or shorten the term of their loan, leading to potential long-term savings.
For those looking to explore the mortgage market and/or for help navigating Edinburgh’s real estate market, Simpson & Marwick is here to guide you through every step of the process.
