Last updated: 13 August 2025 at 14:20
Fixed prices fall across multiple sectors, as average two-year rate falls below 5% for first time in almost three years.
Nearly a week on from the Bank of England’s decision to cut the base rate to 4.00%, lenders have been busy making their own reductions, bringing many of the lowest fixed rates down. This includes the cheapest-priced two-year deals, which fell for remortgage borrowers and homemovers, as well as first-time buyers.
This in turn caused the average two-year mortgage rate to dip to 4.99% as of today (13 August), slipping below the 5% threshold for the first time since 29 September 2022 when the rate stood at 4.87%.
Dubbed as a “symbolic turning point” from the chaos caused by the Liz Truss mini-Budget, Adam French, Head of News at Moneyfactscompare.co.uk, added that while mortgage rates currently follow the “mood music” from successive cuts to the central interest rate, forecasts for inflation to spike in the autumn may keep prices from falling substantially.
Below, we provide more information on the lowest fixed mortgage rates available to first-time buyers, as well as remortgage borrowers and homemovers. Keep in mind, though, the lowest rate may not always be the most cost-effective for your needs and circumstances. That’s why we’ve also offered some alternatives which feature on our Moneyfacts Best Buy chart based on their overall true cost.
For a wider overview of the market, see the latest mortgage rates.
While we highlight the lowest rates, the cheapest deal isn’t always the best. Fees, incentives and your personal circumstances all matter. If you’re unsure, it’s worth speaking to a mortgage broker for tailored advice.
Last updated: 14/08/2025
Rate: 3.78% fixed until 2 December 2027 before reverting to 6.75%
Initial period: 2 years
Product fee: £999
Maximum loan-to-value: 60%
APRC: 6.4%
Representative example: £210,000 mortgage over 25 years initially at 3.78% fixed for 27 months reverting to 6.75% variable for term. 27 monthly payments of £1083.11 and 273 monthly payments of £1422.04. Total amount payable £419,064.89 includes loan amount, interest of £207,461, valuation fees of £0 and product fees of £999. The overall cost for comparison is 6.4% APRC representative.
Rate: 3.90% fixed until 2 December 2028 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 3.90% fixed for 39 months reverting to 6.75% variable for term. 39 monthly payments of £1096.90 and 261 monthly payments of £1410.83. Total amount payable £412,609.73 includes loan amount, interest of £201,006, valuation fees of £0 and product fees of £999. The overall cost for comparison is 6.1% APRC representative.
Rate: 3.90% fixed until 30 November 2028 before reverting to 7.49%
Initial period: 3 years
Product fee: £999
Maximum loan-to-value: 60%
APRC: 6.7%
Representative example: £210,000 mortgage over 25 years initially at 3.90% fixed for 39 months reverting to 7.49% variable for term. 39 monthly payments of £1096.90 and 261 monthly payments of £1498.81. Total amount payable £435,347.51 includes loan amount, interest of £223,969, valuation fees of £0 and product fees of £999. The overall cost for comparison is 6.7% APRC representative.
Rate: 3.78% fixed until 2 December 2030 before reverting to 6.75%
Initial period: 5 years
Product fee: £999
Maximum loan-to-value: 60%
APRC: 5.7%
Representative example: £210,000 mortgage over 25 years initially at 3.78% fixed for 63 months reverting to 6.75% variable for term. 63 monthly payments of £1083.11 and 237 monthly payments of £1382.00. Total amount payable £397,373.93 includes loan amount, interest of £185,770, valuation fees of £0 and product fees of £999. The overall cost for comparison is 5.7% APRC representative.
The lowest two-year fixed rate for remortgage borrowers tumbled to 3.78% this week after Santander slashed prices; the lender now also charges the lowest three-year fix at 3.90% while continuing to offer the lowest five-year remortgage rate after cutting prices to 3.78%. All three deals are available either directly through the lender or via intermediaries across Great Britain and Northern Ireland and charge £999 in arrangement fees. Catering for up to 60% LTV, each option also throws in free legal fees or £250 cashback upon completion. Borrowers in England, Wales and Northern Ireland can also benefit from a free valuation (up to £1,190), while those residing in Scotland can get £95 towards these costs.
Alternatively, borrowers could save on upfront expenses with a two-year deal from first direct. Its 3.89% rate is available with a lower £490 booking fee and the mortgage features as a Moneyfacts Best Buy. Adding to its appeal, it offers a free valuation and free legal fees and can also service 60% LTV. Applications for this deal can be made directly for those living across Great Britain and Northern Ireland.
Meanwhile, Halifax charges the same three-year fixed rate at 3.90% to those with 40% equity and costs £999 in arrangement fees. Open to applicants across Great Britain and Northern Ireland, this deal may be of interest to borrowers with an Energy Performance Certificate (EPC) score of 81 or higher, who can claim £250 in cashback. Otherwise, all borrowers can still receive a free valuation and free legal fees.
However, those with less equity in their home will need to explore other options, and could instead consider a five-year deal from Monmouthshire BS. For its price of 4.15%, borrowers can benefit from up to 80% LTV as well as a free valuation and free legal fees but will still need to pay a £999 arrangement fee. This deal earns a spot as a Moneyfacts Best Buy and is available across England and Wales, excluding the Scilly Isles, Isle of Man and the Channel Islands.
Last updated: 14/08/2025
Rate: 3.73% fixed until 30 November 2027 before reverting to 6.99%
Initial period: 2 years
Product fee: £1,495
Maximum loan-to-value: 60%
APRC: 6.5%
Representative example: £250,000 mortgage over 25 years initially at 3.73% fixed for 27 months reverting to 6.99% variable for term. 27 monthly payments of £1282.61 and 273 monthly payments of £1727.22. Total amount payable £507,706.53 includes loan amount, interest of £256,162, valuation fees of £0 and product fees of £1495. The overall cost for comparison is 6.5% APRC representative.
Rate: 3.73% fixed until 30 November 2027 before reverting to 6.99%
Initial period: 2 years
Product fee: £1,495
Maximum loan-to-value: 60%
APRC: 6.5%
Representative example: £250,000 mortgage over 25 years initially at 3.73% fixed for 27 months reverting to 6.99% variable for term. 27 monthly payments of £1282.61 and 273 monthly payments of £1727.22. Total amount payable £507,706.53 includes loan amount, interest of £256,162, valuation fees of £0 and product fees of £1495. The overall cost for comparison is 6.5% APRC representative.
Rate: 3.84% fixed for three years before reverting to 6.99%
Initial period: 3 years
Product fee: £999
Maximum loan-to-value: 60%
APRC: 6.1%
Representative example: £250,000 mortgage over 25 years initially at 3.84% fixed for 36 months reverting to 6.74% variable for term. 36 monthly payments of £1297.61 and 264 monthly payments of £1680.85. Total amount payable £491,507.36 includes loan amount, interest of £240,458, valuation fees of £0 and product fees of £999. The overall cost for comparison is 6.1% APRC representative.
Rate: 3.85% fixed until 30 November 2030 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 3.85% fixed for 63 months reverting to 6.99% variable for term. 63 monthly payments of £1298.97 and 237 monthly payments of £1678.20. Total amount payable £481,113.51 includes loan amount, interest of £229,569, valuation fees of £0 and product fees of £1495. The overall cost for comparison is 5.8% APRC representative.
Rate: 3.85% fixed until 30 November 2030 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 3.85% fixed for 63 months reverting to 6.99% variable for term. 63 monthly payments of £1298.97 and 237 monthly payments of £1678.20. Total amount payable £481,113.51 includes loan amount, interest of £229,569, valuation fees of £0 and product fees of £1495. The overall cost for comparison is 5.8% APRC representative.
The aftermath of the base rate cut has shaken up the lowest two-year fixed rate for homemovers this week. While this rate remains the same, it’s now NatWest, and its intermediary arm, NatWest Int Sols, that charge 3.73% on each of their deals, while both lenders again offer the lowest five-year fixed price after cutting rates to 3.85%. All four mortgages require the same £1,495 arrangement fee when applying and are all available across Great Britain and Northern Ireland. Each can also finance up to 60% LTV and all come packaged with a free valuation.
Otherwise, if you want to better these incentives, or have a smaller deposit, you could turn to a two-year option from Santander charging 3.86%. Not only does this Moneyfacts Best Buy cater for up to 75% LTV, it also comes with both a free valuation (up to a maximum of £1,190) and £250 cashback to help offset other costs, which could include its £999 arrangement fee. You’ll be able to apply for this mortgage directly or through an intermediary service across Great Britain and Northern Ireland.
Similarly, HSBC offers a five-year fixed deal to those in Great Britain and Northern Ireland that can service an even higher 80% LTV, while including a free valuation and £350 cashback. It charges 4.12% from a £999 booking fee and likewise features on our Moneyfacts Best Buy chart.
Meanwhile, Nationwide BS manages to hold onto its position as the lender charging the lowest three-year rate for homemovers. Priced at 3.84%, its deal may appeal for its inclusion of a free valuation perk, with those moving to a home with an EPC score between 86 and 91 able to also receive £250 cashback, or even £500 for scores of 92 or more. Furthermore, this option can finance 60% LTV and costs £999 in reservation fees with borrowers able to apply across Great Britain and Northern Ireland (excluding the Scilly Isles). It also earns a spot as a Moneyfacts Best Buy.
If you need a higher 75% LTV on a three-year fix, Yorkshire Building Society may be worth considering for its deal charging 3.97%. From a £995 completion fee, this mortgage, which also features as a Moneyfacts Best Buy, includes a free valuation as a bonus, and is available across Great Britain and Northern Ireland.
Last updated: 14/08/2025
Rate: 4.26% fixed until 31 October 2027, reverting to 5.99% discounted variable until 31 October 2030 before finally reverting to 6.74%
Initial period: 2 years
Product fee: £995
Maximum loan-to-value: 90%
APRC: 6.6%
Representative example: £200,000 mortgage over 25 years initially at 4.26% fixed for 26 months reverting to 5.99% variable for 36 months and 7.24% variable for term. 26 monthly payments of £1084.60, 36 monthly payments of £1272.76 and 238 monthly payments of £1403.32. Total amount payable £409,144.12 includes loan amount, interest of £208,009, valuation fees of £0 and product fees of £995. The overall cost for comparison is 6.6% APRC representative.
Rate: 4.26% fixed until 30 November 2030 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 4.26% fixed for 63 months reverting to 6.99% variable for term. 63 monthly payments of £1084.60 and 237 monthly payments of £1352.76. Total amount payable £389,978.92 includes loan amount, interest of £188,934, valuation fees of £0 and product fees of £995. The overall cost for comparison is 6.0% APRC representative.
Rate: 4.26% fixed until 30 November 2030 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 4.26% fixed for 63 months reverting to 6.99% variable for term. 63 monthly payments of £1084.60 and 237 monthly payments of £1352.76. Total amount payable £389,978.92 includes loan amount, interest of £188,934, valuation fees of £0 and product fees of £995. The overall cost for comparison is 6.0% APRC representative.
Rate: 4.26% fixed until 30 November 2030 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 4.26% fixed for 63 months reverting to 6.99% variable for term. 63 monthly payments of £1084.60 and 237 monthly payments of £1352.76. Total amount payable £390,053.92 includes loan amount, interest of £188,934, valuation fees of £75 and product fees of £995. The overall cost for comparison is 6.0% APRC representative.
Rate: 4.70% fixed for two years before reverting to 7.99%
Initial period: 2 years
Product fee: £1,149
Maximum loan-to-value: 95%
APRC: 7.7%
Representative example: £200,000 mortgage over 25 years initially at 4.70% fixed for 24 months reverting to 7.99% variable for term. 24 monthly payments of £1134.49 and 276 monthly payments of £1515.70. Total amount payable £447,144.96 includes loan amount, interest of £245,561, valuation fees of £260 and product fees of £1149. The overall cost for comparison is 7.7% APRC representative.
Rate: 4.60% fixed for five years before reverting to 7.99%
Initial period: 5 years
Product fee: £1,149
Maximum loan-to-value: 95%
APRC: 6.8%
Representative example: £200,000 mortgage over 25 years initially at 4.60% fixed for 60 months reverting to 7.99% variable for term. 60 monthly payments of £1123.05 and 240 monthly payments of £1471.12. Total amount payable £422,035.80 includes loan amount, interest of £220,452, valuation fees of £260 and product fees of £1149. The overall cost for comparison is 6.8% APRC representative.
After weeks of stubborn rates, first-time buyers may be relieved to see the lowest two-year rate finally lowering for those with a 10% deposit following a cut from Yorkshire Building Society. Now charging 4.26%, its mortgage is available directly to those living in Great Britain or Northern Ireland and costs £995 in completion fees. In terms of incentives, those looking to join the property ladder can receive a free valuation as part of the deal.
For borrowers in Great Britain or Northern Ireland looking for more extras, HSBC throws in £250 cashback on top of a free valuation on one of its two-year fixed deals. This mortgage is priced at 4.28%, though charges a slightly higher £999 in booking fees. However, it can still service 90% LTV.
Elsewhere, cuts from NatWest, NatWest Int Sols and Royal Bank of Scotland (RBS) bring the lowest five-year rate down to 4.26% for first-time buyers with a 10% deposit. These deals all cost £995 in arrangement fees with the mortgages from NatWest and NatWest Int Sols available across Great Britain and Northern Ireland, and the deals from RBS available to borrowers in Great Britain, the Channel Islands and the Isle Of Man. Each lender offers two deals at this price point, with one offering just a free valuation, with the other first-time buyer exclusive mortgage also including £250 cashback.
Meanwhile, borrowers looking to buy their first home with a 5% deposit will find the lowest two- and five-year rates staying put for yet another week at 4.70% and 4.60%, again available from Monmouthshire BS. Its deals come with a £1,149 arrangement fee and can be applied for directly or through intermediaries across England and Wales (not including the Scilly Isles, Isle of Man or the Channel Islands). While not including any incentives, the five-year option retains its position as a Moneyfacts Best Buy.
Looking to avoid upfront costs? HSBC offers both a two- and a five-year mortgage financing 95% LTV, that do not include any additional product fees. Priced at 4.94% and 4.79% respectively, these Moneyfacts Best Buys also include a free valuation as well as £250 cashback to further help with the costs of buying your first home and are each available across Great Britain and Northern Ireland.
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