Market analysis by the debt advisory specialists, Sirius Property Finance, reveals that while mortgage rates are lower today than they were at the time of Queen Elizabeth II’s coronation, the average monthly mortgage repayment has increased by 472%.
Sirius has looked at mortgage prices and rates at the time of Queen Elizabeth II’s coronation and compared the figures to today as her son, King Charles III prepares for his big day.
In 1953, the average house price in the UK was £1,891. Adjusted for inflation, this is the equivalent of £42,792 in today’s money.
After placing a 15% deposit, the average homebuyer would be looking at a full monthly mortgage repayment of £8.93 per month, or £202 per month after adjusting for inflation, based on a 25 year term and the average mortgage rate of 4.5%.
Despite a string of interest hikes from the Bank of England, today’s homebuyer is actually better off when borrowing, at least where the average mortgage rate is concerned.
In fact, the current average mortgage rate sits at 3.99%, -5.1% less than the average rate back in 1953.
However, with the current average UK house price sitting at £258,115, this means they need to borrow £219,398 after placing a 15% deposit.
Based on the same 25 year term at the average rate of 3.99%, the average buyer today is making a full monthly mortgage repayment of £1,157 per month.
This means that, as we approach the Coronation of King Charles III, the average monthly cost of repaying a mortgage has climbed by 472% since the Coronation of Queen Elizabeth II.
Managing Director of Sirius Property Finance, Nicholas Christofi said, “For the vast majority of us, Saturday’s coronation will be the first such event of our lifetime thanks to the Queen’s incredible longevity in reigning for 70 years.
A lot has changed in 70 years, and our country is no exception. But it’s still striking that comparable mortgage rates are actually lower today despite the numerous base rate increases seen since December 2021.
Of course, with house prices having increased dramatically since 1953, the actual cost of securing and repaying a mortgage is now far higher and so while rates may still be comparatively low, today’s homebuyers face a far tougher task financially.”
Leave a Comment