Analysis by mortgage adviser, Alexander Hall, revealed the average mortgage rate is currently 4.3%, which is up from 4.03% in January 2024.
But in the same period of time, the typical cost of a home has also climbed by 5.1% to now reach £292,059.
It means, according to Alexander Hall, for the average homebuyer, a mortgage loan of £233,657 would be needed for someone with a 20% deposit of £58,412.
With these factors combined, the researchers said it was no wonder monthly repayments have soared.
Indeed, the study found, a typical buyer making a full mortgage repayment can expect to pay £1,272 per month – an increase of 8.1% or £95 per month.
Over the course of a year that’s an additional £1,142 in repayments.
Stephanie Daley, director of partnerships at Alexander Hall, said: “A greater degree of stability returned to the property market in 2024 and we certainly saw a settling of the landscape with respect to the mortgage market.
“However, despite two reductions to the base rate, we haven’t seen mortgage rates follow suit and, in fact, the monthly cost of a mortgage today sits higher than it did this time last year.
“This is an important factor for homebuyers to be aware of, particularly now that many will be acting with haste in hopes of beating the stamp duty deadline which expires on the 1 April this year.
“It’s always best to seek the advice of an expert mortgage adviser when looking to buy in any market conditions, as this will ensure you secure the very best mortgage available to you based on your financial position within the market.”
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