Last updated: 10 December 2025 at 14:10
Latest UK mortgage news: Mortgage market conditions improve as rate-cutting momentum continues.
Conditions in the mortgage market improved considerably throughout November, according to the latest Moneyfacts UK Mortgage Trends Treasury Report - much to the relief of those currently looking for a deal.
It found the typical rates charged by a two- and five-year fixed mortgage fell by 0.08 and 0.10 percentage points to 4.86% and 4.91% respectively - their lowest levels since before the September 2022 mini budget. This is also the first time the average five-year fixed mortgage has dipped below 5% in approximately two-and-a-half years.
Read more: Average mortgage rates tumble to lowest level since 2022
What’s more, product availability improved last month and, with over 7,000 deals to choose from, is closing in on a record high.
“This year has not been without a few ups and downs for rate moves and product availability, but all signs are looking encouraging for the mortgage market to thrive moving into 2026,” said Rachel Springall, Finance Expert at Moneyfactscompare.co.uk.
See below for the lowest fixed mortgage rates for remortgage borrowers, homemovers and first-time buyers.
While we highlight the lowest rates, these aren’t always the best value once fees and incentives are factored in. If you’re unsure, it’s worth speaking to a mortgage broker for tailored advice.
Last updated: 10/12/2025
Rate: 3.66% fixed until 29 February 2028 before reverting to 6.99%
Initial period: 2 years
Product fee: £1,495
Maximum loan-to-value: 60%
APRC: 6.6%
Representative example: £210,000 mortgage over 25 years initially at 3.66% fixed for 26 months reverting to 6.99% variable for term. 26 monthly payments of £1069.42 and 274 monthly payments of £1451.29. Total amount payable £427,333.38 includes loan amount, interest of £215,458, valuation fees of £0 and product fees of £1495. The overall cost for comparison is 6.6% APRC representative.
Rate: 3.66% fixed until 29 February 2028 before reverting to 6.99%
Initial period: 2 years
Product fee: £1,495
Maximum loan-to-value: 60%
APRC: 6.6%
Representative example: £210,000 mortgage over 25 years initially at 3.66% fixed for 26 months reverting to 6.99% variable for term. 26 monthly payments of £1069.42 and 274 monthly payments of £1451.29. Total amount payable £427,333.38 includes loan amount, interest of £215,458, valuation fees of £0 and product fees of £1495. The overall cost for comparison is 6.6% APRC representative.
Rate: 3.78% fixed until 2 April 2029 before reverting to 6.75%
Initial period: 3 years
Product fee: £999
Maximum loan-to-value: 60%
APRC: 6.1%
Representative example: £210,000 mortgage over 25 years initially at 3.78% fixed for 39 months reverting to 6.75% variable for term. 39 monthly payments of £1083.11 and 261 monthly payments of £1408.89. Total amount payable £411,565.58 includes loan amount, interest of £199,962, valuation fees of £0 and product fees of £999. The overall cost for comparison is 6.1% APRC representative.
Rate: 3.76% fixed until 2 April 2031 before reverting to 6.75%
Initial period: 5 years
Product fee: £999
Maximum loan-to-value: 60%
APRC: 5.6%
Representative example: £210,000 mortgage over 25 years initially at 3.76% fixed for 63 months reverting to 6.75% variable for term. 63 monthly payments of £1080.82 and 237 monthly payments of £1381.48. Total amount payable £397,106.42 includes loan amount, interest of £185,502, valuation fees of £0 and product fees of £999. The overall cost for comparison is 5.6% APRC representative.
High street lenders continued to make cuts over the past week and, as a result, NatWest now offers remortgage borrowers the cheapest-priced two-year fixed deal. This ‘online exclusive’ mortgage can be applied for directly by those in Great Britain and Northern Ireland and finance up to 60% of their home at 3.66%. While it includes a free valuation and free legal fees as incentives, it should be noted that it also comes with a considerable £1,495 arrangement fee. Alternatively, the lender’s intermediary arm, NatWest Int Sols, offers two deals at the same price. They come with many of the same features, however one of these mortgages comes with £350 cashback in place of free legal fees. Visit our chart for further details.
Remortgage borrowers who’d prefer to keep upfront fees to a minimum could instead consider a two-year fixed deal from first direct that can finance up to 60% loan-to-value (LTV) at 3.79% and costs a below-average £490 in booking fees. Those residing in Great Britain and Northern Ireland can apply for this mortgage directly with the lender and will receive a free valuation and free legal fees as extra perks. What’s more, it earns a place on our Moneyfacts Best Buy chart based on its overall true cost.
Elsewhere, Santander continues to provide refinance customers with the cheapest-priced three- and five-year fixed deals this week – albeit at lower rates of 3.78% and 3.76%, respectively. These mortgages each have lending areas spanning the length of Great Britain and Northern Ireland and cost £999 in arrangement fees whether applying direct or via intermediaries. As well as the choice between free legal fees or £250 cashback, successful applicants in England, Wales and Northern Ireland will also receive a free valuation, while those in Scotland get £95 towards the cost of a valuation.
However, remortgage borrowers needing to finance a larger portion of their home must explore other options. A three-year fixed deal from TSB, for instance, caters for up to 80% LTV at 4.14%. Available direct or via selected intermediaries to those in Great Britain, this mortgage costs £995 in arrangements fees and offers the choice between free legal fees or £300 – on top of a free valuation. Taking these factors into account, it lands a spot on our Moneyfacts Best Buy chart this week.
Otherwise, those with less equity who want to secure a fixed rate for slightly longer could consider a five-year Moneyfacts Best Buy alternative from Nationwide BS. The mutual can finance up to 80% of a property at 4.05%. Borrowers in Great Britain and Northern Ireland (excluding the Scilly Isles) can access this mortgage either direct or via intermediaries. It costs £995 in reservation fees but, as well as a free valuation, offers the choice between free legal fees or £500 cashback as further incentives.
Last updated: 10/12/2025
Rate: 3.55% fixed until 2 April 2028 before reverting to 6.75%
Initial period: 2 years
Product fee: £999
Maximum loan-to-value: 60%
APRC: 6.3%
Representative example: £250,000 mortgage over 25 years initially at 3.55% fixed for 27 months reverting to 6.75% variable for term. 27 monthly payments of £1258.27 and 273 monthly payments of £1689.78. Total amount payable £496,557.23 includes loan amount, interest of £245,283, valuation fees of £0 and product fees of £999. The overall cost for comparison is 6.3% APRC representative.
Rate: 3.60% fixed until 2 April 2029 before reverting to 6.75%
Initial period: 3 years
Product fee: £999
Maximum loan-to-value: 60%
APRC: 6.0%
Representative example: £250,000 mortgage over 25 years initially at 3.60% fixed for 39 months reverting to 6.75% variable for term. 39 monthly payments of £1265.01 and 261 monthly payments of £1673.73. Total amount payable £487,452.92 includes loan amount, interest of £236,179, valuation fees of £0 and product fees of £999. The overall cost for comparison is 6.0% APRC representative.
Rate: 3.75% fixed until 28 February 2031 before reverting to 6.99%
Initial period: 5 years
Product fee: £1,495
Maximum loan-to-value: 60%
APRC: 5.8%
Representative example: £250,000 mortgage over 25 years initially at 3.75% fixed for 62 months reverting to 6.99% variable for term. 62 monthly payments of £1285.33 and 238 monthly payments of £1676.51. Total amount payable £480,244.84 includes loan amount, interest of £228,700, valuation fees of £0 and product fees of £1495. The overall cost for comparison is 5.8% APRC representative.
Rate: 3.75% fixed until 28 February 2031 before reverting to 6.99%
Initial period: 5 years
Product fee: £1,495
Maximum loan-to-value: 60%
APRC: 5.8%
Representative example: £250,000 mortgage over 25 years initially at 3.75% fixed for 62 months reverting to 6.99% variable for term. 62 monthly payments of £1285.33 and 238 monthly payments of £1676.51. Total amount payable £480,244.84 includes loan amount, interest of £228,700, valuation fees of £0 and product fees of £1495. The overall cost for comparison is 5.8% APRC representative.
There’s been no change in the cheapest-priced two- and three-year fixed deals available to homemovers this week; Santander continues to offer the lowest rates in these sectors at 3.55% and 3.60%, respectively. These deals can be accessed either direct or via intermediaries by borrowers in Great Britain and Northern Ireland and used to finance up to 60% LTV. While they each cost £999 in arrangements fees, this is partially offset by the £250 cashback included as an incentive (along with a free valuation up to a maximum of £1,190). As a result, they both feature on our Moneyfacts Best Buy chart.
Nevertheless, those with less equity will need to consider other deals. Despite charging a higher rate of 4.01%, a two-year fixed Moneyfacts Best Buy mortgage from Nationwide BS can finance a larger portion of a property (up to 80% LTV). Furthermore, it comes with a free valuation and no additional product fees which may appeal to borrowers wanting to save on upfront costs. This mortgage is available throughout Great Britain and Northern Ireland (excluding the Scilly Isles) and can be applied for direct or via intermediaries. Those whose future home has an Energy Performance Certificate (EPC) rating between 86 and 91 will additionally receive £250 cashback, while those with a score of 91 or more will earn £500 cashback.
Or, for an alternative three-year fixed deal, homemovers could explore a deal from first direct that charges 4.06% to finance up to 80% LTV and which also holds a spot on our Moneyfacts Best Buy chart. It has a lending area covering Great Britain and Northern Ireland, costs £490 in booking fees and includes a free valuation as an added extra.
Those in Great Britain and Northern Ireland who want to secure a fixed rate for longer can now find the cheapest-priced five-year deal direct from NatWest or via its intermediary arm, NatWest Int Sols. Off the back of recent cuts, both lenders offer mortgages that can finance up to 60% of your new home at 3.75%. However, bear in mind that each of these deals costs a significant £1,495 in arrangement fees and only includes a free valuation as their sole incentive.
Instead, you could consider another deal from Nationwide BS which can finance up to 75% LTV at a fixed rate of 3.83%. This mortgage is similarly available direct or via intermediaries to borrowers in Great Britain and Northern Ireland (excluding the Scilly Isles) and costs a slightly more moderate £999 in reservation fees. As well as a free valuation, those moving to a particularly energy-efficient property will receive £250 cashback for an EPC rating between 86 and 91, or £500 cashback for a score of 500 or more.
Last updated: 10/12/2025
Rate: 4.10% fixed until 30 April 2028 before reverting to 6.87%
Initial period: 2 years
Product fee: £999
Maximum loan-to-value: 90%
APRC: 6.5%
Representative example: £200,000 mortgage over 25 years initially at 4.10% fixed for 28 months reverting to 6.87% variable for term. 28 monthly payments of £1066.75 and 272 monthly payments of £1370.76. Total amount payable £403,864.72 includes loan amount, interest of £202,716, valuation fees of £0 and product fees of £999. The overall cost for comparison is 6.5% APRC representative.
Rate: 4.20% fixed until 28 February 2031 before reverting to 6.99%
Initial period: 5 years
Product fee: £995
Maximum loan-to-value: 90%
APRC: 6.0%
Representative example: £200,000 mortgage over 25 years initially at 4.20% fixed for 62 months reverting to 6.99% variable for term. 62 monthly payments of £1077.88 and 238 monthly payments of £1352.31. Total amount payable £389,723.34 includes loan amount, interest of £188,678, valuation fees of £0 and product fees of £995. The overall cost for comparison is 6.0% APRC representative.
Rate: 4.20% fixed until 28 February 2031 before reverting to 6.99%
Initial period: 5 years
Product fee: £995
Maximum loan-to-value: 90%
APRC: 6.0%
Representative example: £200,000 mortgage over 25 years initially at 4.20% fixed for 62 months reverting to 6.99% variable for term. 62 monthly payments of £1077.88 and 238 monthly payments of £1352.31. Total amount payable £389,723.34 includes loan amount, interest of £188,678, valuation fees of £0 and product fees of £995. The overall cost for comparison is 6.0% APRC representative.
Rate: 4.20% fixed until 28 February 2031 before reverting to 6.99%
Initial period: 5 years
Product fee: £995
Maximum loan-to-value: 90%
APRC: 6.0%
Representative example: £200,000 mortgage over 25 years initially at 4.20% fixed for 62 months reverting to 6.99% variable for term. 62 monthly payments of £1077.88 and 238 monthly payments of £1352.31. Total amount payable £389,798.34 includes loan amount, interest of £188,678, valuation fees of £75 and product fees of £995. The overall cost for comparison is 6.0% APRC representative.
Rate: 4.54% fixed until 30 April 2028 before reverting to 6.87%
Initial period: 2 years
Product fee: £999
Maximum loan-to-value: 95%
APRC: 6.6%
Representative example: £200,000 mortgage over 25 years initially at 4.54% fixed for 28 months reverting to 6.87% variable for term. 28 monthly payments of £1116.21 and 272 monthly payments of £1375.46. Total amount payable £406,528.00 includes loan amount, interest of £205,379, valuation fees of £0 and product fees of £999. The overall cost for comparison is 6.6% APRC representative.
Rate: 4.61% fixed until 31 March 2031 before reverting to 7.34%
Initial period: 5 years
Product fee: £995
Maximum loan-to-value: 95%
APRC: 6.3%
Representative example: £200,000 mortgage over 25 years initially at 4.61% fixed for 63 months reverting to 7.34% variable for term. 63 monthly payments of £1124.19 and 237 monthly payments of £1398.02. Total amount payable £403,284.71 includes loan amount, interest of £202,155, valuation fees of £0 and product fees of £995. The overall cost for comparison is 6.3% APRC representative.
Encouragingly for those looking to get on the property ladder, many of the lowest fixed rates for first-time buyers continued to drop this week. Whether you have a 5% or 10% deposit, The Co-operative Bank for Intermediaries currently offers the cheapest two-year fix, with deals priced at 4.54% and 4.10%, respectively. As the lender’s name suggests, both of these mortgages are available to prospective borrowers in Great Britain via selected intermediaries and cost £999 in arrangement fees. As well as a free valuation, they also include £250 cashback which could help towards moving costs or furnishing your first home.
However, a more substantial £500 cashback is up for grabs with a two-year fixed deal from Nationwide BS which can finance up to 90% LTV at a marginally higher 4.14%. This mortgage has a larger lending area, spanning Great Britain and Northern Ireland (but excludes the Scilly Isles), and costs a comparable £999 in reservation fees when applying either direct or via intermediaries. What’s more, those whose first home has an EPC rating between 86 and 91 will qualify for an additional £250 cashback, while those with a score of 91 or more will get an extra £500. It also comes with a free valuation.
Meanwhile, HSBC offers £1,000 cashback with its two-year deal charging 4.84% to finance up to 95% LTV. This mortgage may particularly appeal as it also comes with no additional product fees, as well as a free valuation, and earns a place on our Moneyfacts Best Buy chart based on its overall true cost. First-time buyers in Great Britain and Northern Ireland can apply either direct with the lender or via intermediaries.
When it comes to securing a fixed rate for longer, first-time buyers with a 10% deposit will find the cheapest-priced five-year fix direct from NatWest or via its intermediary arm, NatWest Int Sols. Both lenders offer two deals that charge 4.20% to finance up to 90% LTV – all of which are available to borrowers in Great Britain and Northern Ireland. While they cost £995 in arrangement fees and include a free valuation, one deal from each lender additionally comes with £250 cashback. Alternatively, Royal Bank of Scotland offers two deals at the same price, but which are only available to first-time buyers in Great Britain, the Channel Islands and the Isle of Man. For more information, visit our chart.
As for locking in a five-year fixed rate with a 5% deposit, Leek Building Society continues to offer first-time buyers in England and Wales the cheapest-priced deal in this corner of the market, at 4.61%. This mortgage can be applied for either directly with the lender or via intermediaries, costs £995 in completion fees and comes with a free valuation as its sole incentive.
Those who’d prefer access to a wider range of incentives could instead consider a five-year fix from HSBC that can finance up to 95% LTV at 4.77% and which features on our Moneyfacts Best Buy chart. Not only will first-time buyers in Great Britain and Northern Ireland not have to face any additional product fees when applying either direct or via selected intermediaries, but they’ll also receive a free valuation and £1,500 cashback.
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