The average monthly mortgage payment in Britain was £119 lower in January than the same month last year, at £1,592, according to an analysis by Rightmove (RMV.L).
The property platform said that this 7% fall in payments year-on-year for new buyers was due to a combination of average mortgage rate drops and slow house price growth.
Residential mortgage payments were calculated using Rightmove’s data on asking prices. The mortgage payments are based on average two-year fixed rates with a circa £999 fee and based on 95% of the mortgage market, excluding specialist lending. The findings also assume buyers have a 20% deposit and spread the cost of their mortgage over 25 years.
In January, the average two-year fixed mortgage rate was 4.23%, down from 4.99% a year earlier. The national average asking price came in at £368,031 last month, which was just 0.5% higher year-on-year.
Rightmove said that while buyers are looking at notable savings compared with last year due to the decline in mortgage rates, a large monthly increase in property prices this January means that they face paying slightly more on a new deal than in December.
The national average monthly mortgage payment is £35 more than in December 2025, when the typical asking price for a home stood at £358,138.
On a regional basis, property buyers in London saw the biggest drop year-on-year in monthly mortgage payments in January, with a decline of £207 to £2,940. Rightmove explained that because home are more expensive in London, proportional mortgage rate drops result in bigger cash savings. The average asking price in London stood at £679,782 in January.
In contrast, buyers in the North East saw the smallest fall in average monthly mortgage payments in the year to January, of £38, to £853. Rightmove said that this was because homes are cheapest in the North East but also because asking prices have risen faster in this region, with this offsetting some of the savings of lower mortgage rates. The average asking price in the North East in January was £197,264.