The average mortgage repayment has lifted by 39% to £314 per month over the last decade, with the vast majority of this increase coming in the last five years alone, data from Octane Capital shows.  

The research shows that, based on the current average house price of £285,009, a typical 3.85% mortgage rate, and after placing a 25% deposit on a 25-year loan, an average monthly mortgage repayment is £1,111.  

Back in 2013, the average house price was £223,983, with rates at 3%, meaning buyers were paying £797 per month, adjusting for inflation.  

But the study goes on to show that much of this £314 increase has come over the last five years.   

In 2018, the average cost of a mortgage was £860 per month, based on a 1.83% average mortgage rate at the time.   

This means that between 2013 and 2018, monthly repayments rose by £64 — just 20% of the total £314 increase seen over the last decade.   

The remaining £250 monthly increase, or 80% of the total, has come in the last five years.   

Octane Capital chief executive Jonathan Samuels says: “The average cost of a mortgage has climbed quite considerably over the last decade and while this is largely due to the increasing cost of a home, much of this growth has come over the last five years and, more specifically, since December 2021, as interest rates have increased 12 consecutive times in a row.  

“Following a fairly notable reduction to the rate of inflation, many homebuyers will be waiting in anticipation for next month’s Bank of England decision in the hope that they may reduce rates.   

“The likelihood is that this won’t be the case and we could see the base rate climb to 5% which could drive the cost of borrowing up even further.’