The best UK residential mortgage rates this week

Last updated: 15 May 2024 at 14:00

Selected mortgage rates drop this week, despite average rates rising throughout April.

Borrowers would have been disappointed to see that average mortgage rates rose in April, according to data from the Moneyfacts UK Mortgage Trends Treasury Report.

The average two-year fixed rate rose from 5.80% at the start of April to 5.91% at the start of May, while average five-year fixed rates increased from 5.39% to 5.48% in the same period. This means they are now only slightly lower than the average rates at the start of the year.

However, it wasn’t all bad news as the average shelf-life of a mortgage product stabilised to 28 days and the overall number of mortgage products to choose from rose to a 16-year high of 6,565.

Despite the increase in average rates over April, it is still likely to be cheaper for borrowers to lock into a fixed mortgage rather than sitting on a lender’s Standard Variable Rate (SVR), as the average SVR in April stood at 8.18%.

Below, we provide more details on the lowest mortgage rates available to remortgage borrowers, homemovers and first-time buyers. However, as the lowest rate may not always be the most cost-effective choice for your needs and circumstances, we’ve also offered some alternative deals which feature on our Moneyfacts Best Buy Chart based on their overall true cost.

Otherwise, for a complete overview of the mortgage market, visit our charts.

The best remortgage rates

After MPowered Mortgages made further cuts to its range of fixed deals, it now offers the lowest two- and three-year fixed rates for remortgage borrowers in England and Wales. Its two-year fix charges 4.77% while its three-year fix charges a lower rate of 4.49%. Both deals are available via intermediaries, have a maximum loan-to-value (LTV) of 60% and charge a £999 arrangement fee. As incentives, the deals offer a free valuation and £180 towards legal fees.

Elsewhere, Principality BS offers a two-year fix for remortgages that features as a Moneyfacts Best Buy. While it charges a higher rate of 5.66%, it can finance up to 80% of your property’s value and doesn’t charge any additional product fees. It also comes with a number of other perks including a free valuation, free legal fees and £500 cashback, which could be useful for borrowers looking to cut down on immediate costs. This deal is available in England and Wales.

For a longer fix, Vernon BS continues to offer a Moneyfacts Best Buy deal that’s fixed for three years. It charges a rate of 4.69% and a £499 arrangement fee and can finance up to 80% LTV. However, it’s worth noting that this deal, which is available in England and Wales, doesn’t offer any extra incentives to borrowers.

Meanwhile, NatWest continues to offer the lowest rate for five-year fixed remortgage deals at 4.32%. This online-exclusive deal can finance up to 60% of your property’s value and charges a hefty booking fee of £1,495. Borrowers in Great Britain and Northern Ireland are eligible to apply for this deal and can receive a free valuation and free legal fees as extra perks.

For an alternative five-year fix that can finance a larger proportion of your property, first direct offers a Moneyfacts Best Buy deal with a maximum LTV of 75%. It charges a rate of 4.63% and a £490 booking fee and, as extra incentives to borrowers, it also offers a free valuation and free legal fees.

The best mortgage rates for homemovers

Whether you’re looking for a two-, three- or five-year fixed term, MPowered Mortgages offers the lowest mortgage rates for those looking to move home. All these deals are available via intermediaries to homemovers in England and Wales and can finance up to 60% LTV. Borrowers will need to pay a £999 arrangement fee and can benefit from a free valuation.

However, the deals with the lowest rates may not necessarily be the best option for your situation.

For example, if you need to finance a larger proportion of your property, Barclays Mortgage offers a two-year fixed deal for homemovers with a maximum LTV of 75%. It charges a rate of 5.08% and, as extra perks, borrowers don’t need to pay any product fees and can receive a free valuation. Because of its overall package, this deal features as a Moneyfacts Best Buy.

HSBC offers a three-year fix for homemovers at 4.87% that also appears as a Moneyfacts Best Buy. It can finance up to 85% LTV and charges a £999 booking fee. As extra incentives, this deal comes with a free valuation and £350 cashback.

If you’re moving to an energy-efficient home, Nationwide BS has a five-year fix at 4.39% that offers £250 cashback for properties with an Energy Efficiency rating between 86 and 91 and £500 cashback for those with a rating of 92 or higher. This deal, which you can apply for directly or via intermediaries, has a maximum LTV of 60%, charges a £999 fee and comes with a free valuation. Available in Great Britain and Northern Ireland (excluding the Scilly Isles), this deal features as a Moneyfacts Best Buy.

The best first-time buyer mortgages

Clydesdale Bank continues to offer the lowest two-year fixed rate for first-time buyers with a 10% deposit at 5.19%. This deal, which is only available via intermediaries, charges a sizeable arrangement fee of £1,499 and doesn’t offer any incentives.

For a two-year fix with more perks, Nationwide BS offers a deal with a maximum LTV of 90% at 5.34%. It charges a £999 fee but also comes with a free valuation and £500 cashback. Furthermore, if your new home has an Energy Efficiency rating between 86 and 91, you could receive £250 cashback and, if it has a rating of 92 or higher, you could receive £500 cashback. First-time buyers in Great Britain and Northern Ireland (excluding the Scilly Isles) can apply for this deal directly or via an intermediary.

First-time buyers looking for a five-year fix at 90% LTV will find first direct offers the lowest rate at 4.78%. It charges a relatively small booking fee of £490 and comes with the perk of a free valuation.

Alternatively, HSBC offers a five-year fix at a slightly higher rate of 4.83% that offers £500 cashback as well as a free valuation. With a maximum LTV of 90% and a £999 booking fee, first-time buyers in Great Britain and Northern Ireland can apply for this deal from HSBC directly or via certain intermediaries.

If you have a smaller 5% deposit, Loughborough BS continues to offer the lowest two-year fixed deal at 5.49%. Available from the lender directly or via intermediaries, this deal charges a £999 completion fee and offers a free valuation as an incentive. Only borrowers in England and Wales are eligible to apply for this deal.

Otherwise, Cumberland BS offers a Moneyfacts Best Buy deal for first-time buyers with a 5% deposit. It charges a rate of 5.98% but doesn’t charge any additional fees, which could be appealing to those wanting to minimise their upfront costs. It also comes with a free valuation (for properties valued up to £750,000), as well as a sizeable £1,000 cashback which could help cover some of the many costs involved in buying your first home. This deal is available in Great Britain, excluding London and the south-east of England.

Despite raising its rate last week, Family Building Society once again offers the lowest five-year fix for first-time buyers with a 5% deposit. Charging 5.09%, this deal is a family mortgage, which means first-time buyers need a family member who is willing to use their own savings or property as security. It charges a completion fee of £599 and is available across England and Wales (excluding the Scilly Isles). Borrowers can benefit from a free valuation for properties worth up to £500,000 and £250 cashback as incentives.

First-time buyers with a 5% deposit could also consider a Moneyfacts Best Buy deal from HSBC at 5.30%. It charges a rate of 5.30% but borrowers won’t need to pay any product fees. As extra benefits, borrowers can also receive a free valuation as well as £1,000 cashback.