Last updated: 21 January 2026 at 14:10
Latest mortgage news: Borrowers may feel disappointed as rising inflation dashes hopes of a base rate cut.
With latest figures revealing UK inflation rose to 3.4% in the year to December 2025, it seems unlikely that the Bank of England will reduce the base rate when its Monetary Policy Committee (MPC) next meets in a little over two weeks’ time.
This may disappoint the millions of people due to refinance this year, as lenders often consider forecasts for the UK’s central interest rate when setting their mortgage prices which can help to drive down borrowing costs.
However, there’s still plenty of reason to be optimistic as mortgage rates have steadily declined (on the whole) over recent months and years. In fact, those coming to the end of a two-year fixed mortgage are likely to find interest rates are lower than when they last booked a deal (as the average rate has fallen from 5.93% in January 2024 to 4.83% by the start of this month).
“Hopefully this positive momentum can carry on long into the new year,” commented Caitlyn Eastell, Personal Finance Analyst at Moneyfactscompare.co.uk. She highlighted that inflation is still expected to ease throughout 2026, which means interest rate cuts could be on the cards in the future.
See below for the lowest fixed mortgage rates for remortgage borrowers, homemovers and first-time buyers. Alternatively, go to our charts to discover current mortgage rates UK lenders offer.
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: 21/01/2026
Rate: 3.64% fixed until 30 April 2028 before reverting to 6.74%
Initial period: 2 years
Product fee: £1,495
Maximum loan-to-value: 60%
APRC: 6.3%
Representative example: £210,000 mortgage over 25 years initially at 3.64% fixed for 27 months reverting to 6.74% variable for term. 27 monthly payments of £1067.14 and 273 monthly payments of £1419.23. Total amount payable £418,137.57 includes loan amount, interest of £206,263, valuation fees of £0 and product fees of £1495. The overall cost for comparison is 6.3% APRC representative.
Rate: 3.64% fixed until 30 April 2028 before reverting to 6.74%
Initial period: 2 years
Product fee: £1,495
Maximum loan-to-value: 60%
APRC: 6.3%
Representative example: £210,000 mortgage over 25 years initially at 3.64% fixed for 27 months reverting to 6.74% variable for term. 27 monthly payments of £1067.14 and 273 monthly payments of £1419.23. Total amount payable £418,137.57 includes loan amount, interest of £206,263, valuation fees of £0 and product fees of £1495. The overall cost for comparison is 6.3% APRC representative.
Rate: 3.75% fixed until 31 March 2029 before reverting to 5.74%
Initial period: 3 years
Product fee: £999
Maximum loan-to-value: 60%
APRC: 5.4%
Representative example: £210,000 mortgage over 25 years initially at 3.75% fixed for 38 months reverting to 5.74% variable for term. 38 monthly payments of £1079.68 and 262 monthly payments of £1293.38. Total amount payable £381,352.40 includes loan amount, interest of £169,893, valuation fees of £0 and product fees of £999. The overall cost for comparison is 5.4% APRC representative.
Rate: 3.76% fixed until 31 March 2031 before reverting to 5.74%
Initial period: 5 years
Product fee: £999
Maximum loan-to-value: 60%
APRC: 5.1%
Representative example: £210,000 mortgage over 25 years initially at 3.76% fixed for 62 months reverting to 5.74% variable for term. 62 monthly payments of £1080.82 and 238 monthly payments of £1276.26. Total amount payable £372,219.72 includes loan amount, interest of £160,761, valuation fees of £0 and product fees of £999. The overall cost for comparison is 5.1% APRC representative.
Rate: 3.76% fixed until 2 May 2031 before reverting to 6.50%
Initial period: 5 years
Product fee: £999
Maximum loan-to-value: 60%
APRC: 5.5%
Representative example: £210,000 mortgage over 25 years initially at 3.76% fixed for 63 months reverting to 6.50% variable for term. 63 monthly payments of £1080.82 and 237 monthly payments of £1354.85. Total amount payable £390,795.11 includes loan amount, interest of £179,191, valuation fees of £0 and product fees of £999. The overall cost for comparison is 5.5% APRC representative.
There’s been very little change in the cheapest-priced fixed deals available to remortgage borrowers this week. An online-exclusive deal directly from NatWest and two products via its intermediary arm, NatWest Int Sols, continue to charge the lowest two-year fixed rate in this corner of the mortgage market, at 3.64%. These deals can all be accessed by homeowners in Great Britain and Northern Ireland looking to finance up to 60% loan-to-value (LTV). While they cost a substantial £1,495 in arrangement fees, these mortgages all come with a free valuation. What’s more, the direct deal and one option from NatWest Int Sols additionally include free legal fees, while the other offers £350 cashback.
Nevertheless, those wanting to keep upfront fees to a minimum could consider a mortgage from first direct that earns a spot on our Moneyfacts Best Buy chart based on its overall true cost. Although it charges a slightly higher rate of 3.70% to finance up to 60% LTV, is costs a below-average £490 booking fees. Borrowers in Great Britain and Northern Ireland can apply for this deal directly and will receive a free valuation and free legal fees as incentives.
Meanwhile, remortgage borrowers in Great Britain and Northern Ireland who’d prefer to lock in a guaranteed price for slightly longer will find Barclays Mortgage continues to provide the lowest three- and five-year fixed rates this week, at 3.75% and 3.76% respectively. These deals are available direct or via intermediaries, cost £999 in arrangement fees and can finance up to 60% LTV. As well as a free valuation, they also offer the choice between free legal fees and £350 cashback as an extra perk.
That being said, those with less equity will need to explore other options. A three-year fixed mortgage from Furness BS can finance up to 85% of a property at 4.09% and takes a spot on our Moneyfacts Best Buy chart. This deal is available to borrowers in Great Britain either direct or via intermediaries and costs £999 in booking fees. It offers £250 cashback as an incentive, as well as a free valuation (up to a maximum of £665).
Alternatively, remortgage borrowers will find Santander now charges the same lowest five-year fixed rate (3.76%) after the lender made cuts this week. It also caters for up to 60% LTV and costs £999 in arrangement fees. Those living in Great Britain and Northern Ireland can apply for this mortgage either direct or via intermediaries and will have the choice of free legal fees or £250 cashback on completion as an incentive. Borrowers in England, Wales and Northern Ireland will additionally receive a free valuation, while customers in Scotland get £95 towards valuation fees.
Last updated: 21/01/2026
Rate: 3.55% fixed until 2 May 2028 before reverting to 6.50%
Initial period: 2 years
Product fee: £999
Maximum loan-to-value: 60%
APRC: 6.1%
Representative example: £250,000 mortgage over 25 years initially at 3.55% fixed for 27 months reverting to 6.50% variable for term. 27 monthly payments of £1258.27 and 273 monthly payments of £1653.75. Total amount payable £486,721.04 includes loan amount, interest of £235,447, valuation fees of £0 and product fees of £999. The overall cost for comparison is 6.1% APRC representative.
Rate: 3.55% fixed for two years before reverting to 6.49%
Initial period: 2 years
Product fee: £999
Maximum loan-to-value: 60%
APRC: 6.1%
Representative example: £250,000 mortgage over 25 years initially at 3.55% fixed for 24 months reverting to 6.49% variable for term. 24 monthly payments of £1258.27 and 276 monthly payments of £1656.17. Total amount payable £488,350.40 includes loan amount, interest of £237,301, valuation fees of £0 and product fees of £999. The overall cost for comparison is 6.1% APRC representative.
Rate: 3.55% fixed until 31 May 2028 before reverting to 7.24%
Initial period: 2 years
Product fee: £999
Maximum loan-to-value: 60%
APRC: 6.6%
Representative example: £250,000 mortgage over 25 years initially at 3.55% fixed for 28 months reverting to 7.24% variable for term. 28 monthly payments of £1258.27 and 272 monthly payments of £1759.81. Total amount payable £515,048.88 includes loan amount, interest of £263,900, valuation fees of £100 and product fees of £999. The overall cost for comparison is 6.6% APRC representative.
Rate: 3.55% fixed until 31 May 2028 before reverting to 7.24%
Initial period: 2 years
Product fee: £999
Maximum loan-to-value: 60%
APRC: 6.6%
Representative example: £250,000 mortgage over 25 years initially at 3.55% fixed for 28 months reverting to 7.24% variable for term. 28 monthly payments of £1258.27 and 272 monthly payments of £1759.81. Total amount payable £515,048.88 includes loan amount, interest of £263,900, valuation fees of £100 and product fees of £999. The overall cost for comparison is 6.6% APRC representative.
Rate: 3.60% fixed until 31 May 2029 before reverting to 7.24%
Initial period: 3 years
Product fee: £999
Maximum loan-to-value: 60%
APRC: 6.3%
Representative example: £250,000 mortgage over 25 years initially at 3.60% fixed for 40 months reverting to 7.24% variable for term. 40 monthly payments of £1265.01 and 260 monthly payments of £1740.86. Total amount payable £504,373.00 includes loan amount, interest of £253,224, valuation fees of £100 and product fees of £999. The overall cost for comparison is 6.3% APRC representative.
Rate: 3.74% fixed until 30 April 2031 before reverting to 6.74%
Initial period: 5 years
Product fee: £1,495
Maximum loan-to-value: 60%
APRC: 5.6%
Representative example: £250,000 mortgage over 25 years initially at 3.74% fixed for 63 months reverting to 6.74% variable for term. 63 monthly payments of £1283.97 and 237 monthly payments of £1642.72. Total amount payable £471,759.75 includes loan amount, interest of £220,215, valuation fees of £0 and product fees of £1495. The overall cost for comparison is 5.6% APRC representative.
Rate: 3.74% fixed until 30 April 2031 before reverting to 6.74%
Initial period: 5 years
Product fee: £1,495
Maximum loan-to-value: 60%
APRC: 5.6%
Representative example: £250,000 mortgage over 25 years initially at 3.74% fixed for 63 months reverting to 6.74% variable for term. 63 monthly payments of £1283.97 and 237 monthly payments of £1642.72. Total amount payable £471,759.75 includes loan amount, interest of £220,215, valuation fees of £0 and product fees of £1495. The overall cost for comparison is 5.6% APRC representative.
While the lowest two-year fixed rate for homemovers also held steady this week, it can now be found from a wider range of lenders following recent reductions. Santander remains among those charging borrowers in Great Britain and Northern Ireland 3.55% to finance up to 60% of their new home. This deal can be accessed either direct or via intermediaries, costs £999 in arrangement fees and includes a free valuation (up to £1,190) as well as £250 cashback as incentives. What’s more, it retains a place on our Moneyfacts Best Buy chart.
It’s joined by a two-year deal from Nationwide BS which can now also finance up to 60% LTV at 3.55%. Borrowers throughout Great Britain and Northern Ireland (excluding the Scilly Isles) can apply for this mortgage either direct or via intermediaries and will face a £999 reservation fee. However, there’s the opportunity to earn £500 cashback if your new property has an Energy Performance Certificate (EPC) score of 92 or more (or a slightly smaller £250 cashback for a rating between 86 and 91). This is in addition to a free valuation.
Similarly, deals available directly from Halifax and Lloyds Bank charge a two-year fixed rate of 3.55% to finance up to 60% LTV. Both have lending areas spanning Great Britain and Northern Ireland, cost £999 in arrangement fees and offer £250 cashback if your new home has an EPC rating of 81 or more. A mortgage from Halifax also continues to provide homemovers with the cheapest-priced three-year fix and charges a slightly lower rate this week of 3.60%. This deal has many of the same features as its two-year counterpart; discover further details using our chart.
Otherwise, the lowest five-year fixed homemoving rate continues to stand at 3.74% this week and can be accessed by borrowers in Great Britain and Northern Ireland either directly from NatWest or from NatWest Int Sols via intermediaries. These deals can each finance up to 60% LTV and offer a free valuation as an incentive. But, keep in mind they cost a substantial £1,495 in arrangement fees.
Instead, those needing to finance a larger portion of their new home or who are looking to save on upfront costs could consider deals from first direct that feature on our Moneyfacts Best Buy chart. This includes a three-year fixed deal that can finance up to 85% LTV at 4.06%, and a five-year fixed mortgage that caters for up to 75% LTV at 3.84%. Both options can be applied for directly by borrowers in Great Britain and Northern Ireland; they cost a modest £490 in booking fees and come with a free valuation as a perk.
Last updated: 21/01/2026
Rate: 4.00% fixed until 31 May 2028 before reverting to 7.24%
Initial period: 2 years
Product fee: £999
Maximum loan-to-value: 90%
APRC: 6.8%
Representative example: £200,000 mortgage over 25 years initially at 4.00% fixed for 28 months reverting to 7.24% variable for term. 28 monthly payments of £1055.67 and 272 monthly payments of £1413.08. Total amount payable £415,065.52 includes loan amount, interest of £213,917, valuation fees of £100 and product fees of £999. The overall cost for comparison is 6.8% APRC representative.
Rate: 4.00% fixed until 31 May 2028 before reverting to 7.24%
Initial period: 2 years
Product fee: £999
Maximum loan-to-value: 90%
APRC: 6.8%
Representative example: £200,000 mortgage over 25 years initially at 4.00% fixed for 28 months reverting to 7.24% variable for term. 28 monthly payments of £1055.67 and 272 monthly payments of £1413.08. Total amount payable £415,065.52 includes loan amount, interest of £213,917, valuation fees of £100 and product fees of £999. The overall cost for comparison is 6.8% APRC representative.
Rate: 4.15% fixed until 30 April 2031 before reverting to 6.74%
Initial period: 5 years
Product fee: £995
Maximum loan-to-value: 90%
APRC: 5.8%
Representative example: £200,000 mortgage over 25 years initially at 4.15% fixed for 63 months reverting to 6.74% variable for term. 63 monthly payments of £1072.31 and 237 monthly payments of £1324.28. Total amount payable £382,454.89 includes loan amount, interest of £181,410, valuation fees of £0 and product fees of £995. The overall cost for comparison is 5.8% APRC representative.
Rate: 4.15% fixed until 30 April 2031 before reverting to 6.74%
Initial period: 5 years
Product fee: £995
Maximum loan-to-value: 90%
APRC: 5.8%
Representative example: £200,000 mortgage over 25 years initially at 4.15% fixed for 63 months reverting to 6.74% variable for term. 63 monthly payments of £1072.31 and 237 monthly payments of £1324.28. Total amount payable £382,454.89 includes loan amount, interest of £181,410, valuation fees of £0 and product fees of £995. The overall cost for comparison is 5.8% APRC representative.
Rate: 4.15% fixed until 30 April 2031 before reverting to 6.74%
Initial period: 5 years
Product fee: £995
Maximum loan-to-value: 90%
APRC: 5.8%
Representative example: £200,000 mortgage over 25 years initially at 4.15% fixed for 63 months reverting to 6.74% variable for term. 63 monthly payments of £1072.31 and 237 monthly payments of £1324.28. Total amount payable £382,529.89 includes loan amount, interest of £181,410, valuation fees of £75 and product fees of £995. The overall cost for comparison is 5.8% APRC representative.
Rate: 4.47% fixed until 30 June 2028 before reverting to 6.62%
Initial period: 2 years
Product fee: £999
Maximum loan-to-value: 95%
APRC: 6.4%
Representative example: £200,000 mortgage over 25 years initially at 4.47% fixed for 29 months reverting to 6.62% variable for term. 29 monthly payments of £1108.26 and 271 monthly payments of £1344.92. Total amount payable £397,761.86 includes loan amount, interest of £196,613, valuation fees of £0 and product fees of £999. The overall cost for comparison is 6.4% APRC representative.
Rate: 4.56% 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 4.56% fixed for 62 months reverting to 7.34% variable for term. 62 monthly payments of £1118.49 and 238 monthly payments of £1397.80. Total amount payable £403,152.78 includes loan amount, interest of £202,023, valuation fees of £0 and product fees of £995. The overall cost for comparison is 6.3% APRC representative.
Although many of the cheapest fixed rates from across the rest of the market didn’t budge this week, first-time buyers with a 10% deposit will likely be pleased to learn the lowest two-year fixed rate in this sector dropped slightly following cuts from Halifax and Lloyds Bank. Deals from both lenders can now finance up to 90% LTV at 4.00%. They’re available directly to borrowers in Great Britain and Northern Ireland who will need to budget for the £999 arrangement fee. However, this could be partially offset by the £250 cashback on offer if your first home has an EPC score of 81 or more.
Alternatively, a two-year fixed mortgage from HSBC comes with a greater amount of cashback (£750) and charges only a marginally higher rate of 4.06% to finance up to 90% of a first home. It costs £999 in booking fees, can be applied for directly or via selected intermediaries by borrowers in Great Britain and Northern Ireland, and also includes a free valuation to sweeten the deal.
First-time buyers with a 10% deposit who’d prefer to lock into a five-year fixed mortgage, meanwhile, will find two deals from each of NatWest, NatWest Int Sols and Royal Bank of Scotland (RBS) continue to charge the lowest rate, at 4.15%. These products all cost £995 in booking fees and include a free valuation; one option from each lender additionally comes with £250 cashback. Borrowers in Great Britain and Northern Ireland can apply for the NatWest deals directly with the lender or access those from NatWest Int Sols via intermediaries. While the mortgages from RBS can also be applied for directly, they have a slightly different lending area (consisting of Great Britain, the Channel Islands and the Isle of Man).
Elsewhere, the lowest two-year fixed rate available to first-time buyers with a smaller, 5% deposit also fell this week and can still be found from The Co-operative Bank for Intermediaries. It now charges borrowers in Great Britain 4.47% to finance up to 95% of their first home. As the lender’s name suggests, this deal can only be accessed via selected intermediaries and costs £999 in arrangement fees. It also includes £250 cashback and a free valuation as incentives.
But, seeing as getting on the property ladder can be expensive, those who want to take advantage of a greater range of perks could consider a two-year fixed deal from Nationwide BS which earns a place on our Moneyfacts Best Buy chart. Despite charging a higher rate of 4.64% to finance up to 95% LTV, this deal includes £500 cashback, a free valuation and comes with no additional product fees. What’s more, there’s an additional £250 up for grabs if your property has an EPC rating between 86 and 91 or £500 cashback for a score of 92 or more. This mortgage can be found by borrowers in Great Britain and Northern Ireland (excluding the Scilly Isles) either directly from the lender or via intermediaries.
Keep in mind it’s also possible for first-time buyers to secure a longer, five-year fix with just a 5% deposit. Leek Building Society continues to charge the lowest rate in this corner of the market, at 4.56%. This mortgage is available to borrowers in England and Wales either direct or via intermediaries, costs £995 in completion fees and offers a free valuation as an incentive. Based on these factors, it holds onto its spot on our Moneyfacts Best Buy chart.
Likewise, a five-year fixed deal from HSBC charging 4.72% to finance up to 95% LTV also retains its place on our Moneyfacts Best Buy chart this week and may appeal for the £1,500 cashback it offers as an incentive (as well as free valuation). Buyers in Great Britain and Northern Ireland can apply for this deal directly or via selected intermediaries and won’t face any additional product fees.
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