UK statistics
UK Average Monthly Mortgage Payment January 2026: £1,592 + Rate Trend
The average monthly mortgage payment on a new purchase was £1,592 in January 2026 per Rightmove - £119 (7%) lower than January 2025. The figure assumes the average asking price, a 20% deposit, the average two-year fixed rate (4.23% in January 2026 against 4.99% a year earlier) and a 25-year term. Rates have since moved up: the Bank of England said in September 2026 that the quoted two-year fixed rate was around 95 basis points higher than before the Middle East conflict.
Headline numbers
- Average UK monthly mortgage Jan 2026
- £1,592 Rightmove, 80% LTV 25-yr fix
- Average 2-year fixed rate Jan 2026
- 4.23% Rightmove tracker, down from 4.99% YoY
- Monthly drop vs Jan 2025
- -£119 -7% YoY as rates eased
The detail
UK average monthly mortgage payment was £1,592 in January 2026 per Rightmove analysis - a £119 (7%) reduction versus January 2025. The fall reflects two-year fixed rates dropping from 4.99% (Jan 2025) to 4.23% (Jan 2026) as the Bank of England cutting cycle (Aug 2024 onwards) flowed through to lender pricing.
Methodology: Rightmove calculates the figure from its average asking price (£368,031 nationally in January 2026) and its daily mortgage rate data, using two-year fixed rates with a fee of around £999, a 20% deposit and a 25-year term. The payment varies widely by region: in January 2026 it was £2,940 a month in London, £2,000 in the South East, £1,117 in Wales, £853 in the North East and £809 in Scotland. A typical first-time buyer faced £975 a month.
For household budgeting, £1,592 a month is £19,104 a year. Compare that with the ONS median household disposable income of £36,700 (financial year ending 2024) and a mortgage at the national average asking price would take about half of a typical household's income after tax - which is why regional prices and deposit size matter so much to affordability. Note that the ONS figure is adjusted for household size, so this is an indicative comparison, not a formal affordability test.
Sources
- Rightmove - Average monthly mortgage payment down £119 year-on-year in January (retrieved 2026-09-30)
- Bank of England - September 2026 Monetary Policy Summary and Minutes (retrieved 2026-09-30)
- ONS - Household disposable income and inequality: FYE 2024 (retrieved 2026-07-01)
- Our methodology & full source list →
Related statistics
- Average house price
The UK House Price Index put the average UK house price at £273,000 in July 2026, up 1.4% on a year earlier (provisional). Country split: England £293,000 (+1.1%), Wales £215,000 (+2.6%), Scotland £196,000 (+2.3%) and Northern Ireland £202,000 (+9.2%, April to June 2026). The North East had the fastest growth of the English regions at 4.9%; London prices fell 3.3%.
- UK Bank Rate
The Bank of England Monetary Policy Committee voted by a majority of 6-3 to maintain Bank Rate at 3.75% at its meeting ending 16 September 2026, with three members voting for a 0.25 percentage point rise to 4%. The vote repeated July's 6-3 split. CPI inflation rose to 3.1% in August and the MPC expects it to rise further over coming quarters as higher energy prices pass through. The next decision is due on 5 November 2026.
- UK household saving ratio
The UK household saving ratio - the share of disposable income that households save rather than spend - was 8.8% in Q2 2026 (April to June), per the ONS Quarterly National Accounts published on 30 September 2026. That is up from 8.6% in Q1 2026 but below the 10.2% of Q1 2025, and still above the 2015-19 pre-pandemic average of 6.6%.