By way of illustration, the combination of a fall in interest rates and a higher average mortgage amount in March 2025 compared to 2024 averages increased the average monthly mortgage payment by £1.3k. The drop in mortgage rates of nearly 0.4% points relative to their average rate of 5.07% in 2024 has, for an average mortgage size with a typical repayment period of nearly 27 years, resulted in a reduction in the monthly mortgage payment of over £900k to approximately £22.3k. CZK. This is a smaller saving than a reduction of more than CZK 2,700 at an interest rate of 5.81% in 2023 for the current value of the average new mortgage. However, the current average mortgage amount is 11% higher than the average mortgage amount in 2024, which contributes to an increase of CZK 2.1 thousand in the monthly payment. Conversely, compared to the average 2.8% mortgage rate for new mortgages in 2019, the current refinance mortgage rate of 4.66% for a shortened loan term raises the monthly payment on the average mortgage by approximately more than 1,800k, or about 3.8% of the current gross average wage.
Source of primary data
CBA Hypomonitor
Note
The first time series reflects the average realized interest rate and the average amount of new mortgage originations from the CBA Hypomonitor. The second time series for a mortgage of CZK 2.66 million reflects the average mortgage amount from January 2020 according to CBA Hypomonitor.