Last updated: 17 December 2025 at 13:30
Please note, the next mortgage roundup will be published on 7 January 2026.
Latest UK mortgage news: After a relatively strong 2025 which saw lenders cut rates, the mortgage market is forecast to see “modest growth” in 2026.
Mortgage lenders cut rates throughout 2025, with the average two-year fixed rate falling from 5.48% at the start of the year to 4.86% on 1 December 2025 and the average five-year fixed rate dropping from 5.25% to 4.91% over the same period.
This gradual decline in rates is expected to continue into 2026, but the latest mortgage market forecast from UK Finance points out that affordability is likely to remain a challenge for potential buyers.
While total lending for house purchases grew by 22% to £176 billion in 2025, UK Finance estimates that this figure will see a much smaller growth of 2% in 2026 due to affordability pressures. However, it expects that refinancing to a new lender will steadily grow by 10% in 2026, with around 1.8 million fixed mortgage deals due to end over the next 12 months.
“The mortgage market showed strength in 2025, particularly for house purchases. But even with welcome tweaks to lending regulations this year, affordability is now very tight and this is likely to limit borrowing options for potential buyers in 2026,” James Tatch, Head of Analytics at UK Finance, commented.
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: 17/12/2025
Rate: 3.66% fixed until 31 March 2028 before reverting to 6.99%
Initial period: 2 years
Product fee: £1,495
Maximum loan-to-value: 60%
APRC: 6.5%
Representative example: £210,000 mortgage over 25 years initially at 3.66% fixed for 27 months reverting to 6.99% variable for term. 27 monthly payments of £1069.42 and 273 monthly payments of £1450.05. Total amount payable £426,612.99 includes loan amount, interest of £214,738, valuation fees of £0 and product fees of £1495. The overall cost for comparison is 6.5% APRC representative.
Rate: 3.66% fixed until 31 March 2028 before reverting to 6.99%
Initial period: 2 years
Product fee: £1,495
Maximum loan-to-value: 60%
APRC: 6.5%
Representative example: £210,000 mortgage over 25 years initially at 3.66% fixed for 27 months reverting to 6.99% variable for term. 27 monthly payments of £1069.42 and 273 monthly payments of £1450.05. Total amount payable £426,612.99 includes loan amount, interest of £214,738, valuation fees of £0 and product fees of £1495. The overall cost for comparison is 6.5% APRC representative.
Rate: 3.75% fixed until 31 March 2029 before reverting to 5.99%
Initial period: 3 years
Product fee: £999
Maximum loan-to-value: 60%
APRC: 5.5%
Representative example: £210,000 mortgage over 25 years initially at 3.75% fixed for 39 months reverting to 5.99% variable for term. 39 monthly payments of £1079.68 and 261 monthly payments of £1320.86. Total amount payable £388,310.98 includes loan amount, interest of £176,852, valuation fees of £0 and product fees of £999. The overall cost for comparison is 5.5% 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.
An online-exclusive deal from NatWest and two deals from its intermediary arm, NatWest Int Sols, continue to offer the lowest two-year fixed remortgage rate of 3.66% to borrowers in Great Britain and Northern Ireland. All these deals can finance up to 60% of your property’s value, charge an arrangement fee of £1,495 and offer the perk of a free valuation. The NatWest deal and one option from NatWest Int Sols also come with free legal fees, while the other intermediary-only deal offers the incentive of £350 cashback instead.
Alternatively, remortgage borrowers who need to finance a larger proportion of their property could consider a Moneyfacts Best Buy deal from first direct at 3.89% that has a maximum LTV of 75%. This two-year fix charges a £490 product fee and comes with the incentives of a free valuation and free legal fees. Borrowers in Great Britain and Northern Ireland can apply for this mortgage from the lender directly.
After Barclays Mortgage made reductions on selected mortgages, it now offers the lowest three-year fixed remortgage rate. Charging 3.75% alongside a £999 arrangement fee, this deal has a maximum loan-to-value (LTV) of 60% and is available across Great Britain and Northern Ireland. Borrowers can apply for this deal from the lender directly or via an intermediary and, as incentives, they can receive a free valuation and the choice of either free legal fees or £350 cashback.
If homeowners in Great Britain need a remortgage deal with a higher maximum LTV, Skipton BS offers a three-year fix at 4.44% that can finance up to 90% LTV and has the extra benefit of not charging any product fees. Featuring as a Moneyfacts Best Buy, this deal also comes with a free valuation and free legal fees and is available from the lender directly or from an intermediary.
Meanwhile, the lowest five-year fixed remortgage rate remains at 3.76% for another week. Available from Santander directly or via an intermediary, this deal can finance up to 60% LTV and charges a £999 arrangement fee. While borrowers across Great Britain and Northern Ireland are eligible to apply for this mortgage, the incentives differ slightly depending on your location. Those in England, Wales and Northern Ireland can receive a free valuation (up to £1,190) but those in Scotland will only receive £95 towards valuation costs. All borrowers can also choose between the extra benefit of free legal fees or £250 cashback.
Borrowers who own less equity in their home could consider a five-year fix from Nationwide BS that can finance up to 80% LTV. Charging 4.05% and a product fee of £999, this deal offers the additional incentives of a free valuation and either free legal fees or £500 cashback. Those in Great Britain and Northern Ireland (excluding the Scilly Isles) can access this mortgage via the lender directly or by applying through an intermediary.
Last updated: 17/12/2025
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 31 March 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 63 months reverting to 6.99% variable for term. 63 monthly payments of £1285.33 and 237 monthly payments of £1675.02. Total amount payable £479,500.53 includes loan amount, interest of £227,956, valuation fees of £0 and product fees of £1495. The overall cost for comparison is 5.8% APRC representative.
Rate: 3.75% fixed until 31 March 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 63 months reverting to 6.99% variable for term. 63 monthly payments of £1285.33 and 237 monthly payments of £1675.02. Total amount payable £479,500.53 includes loan amount, interest of £227,956, valuation fees of £0 and product fees of £1495. The overall cost for comparison is 5.8% APRC representative.
The lowest fixed mortgage rates for those moving home remain unchanged this week, as Santander charges the cheapest two- and three-year fixed rates of 3.55% and 3.60% respectively. Homemovers in Great Britain and Northern Ireland can apply for these deals from the bank directly or through an intermediary to finance up to 60% of their new property purchase. Although they will need to pay a £999 arrangement fee, they can receive the incentives of a free valuation (up to £1,190) and £250 cashback. Taking into account their overall value, both these Santander deals feature on our Moneyfacts Best Buy charts.
However, borrowers could also consider some other Moneyfacts Best Buy deals that may be more suitable to their requirements. For example, those moving to an energy-efficient home may be interested in a two-year fixed deal from Nationwide BS at 4.01% that offers £250 cashback if your home has an Energy Performance Certificate (EPC) rating between 86 and 91, or £500 cashback if it has a score of 92 or higher. Moreover, it doesn’t charge any product fees and comes with a free valuation. Homemovers in Great Britain and Northern Ireland (excluding the Scilly Isles) can access this deal from the lender directly or via an intermediary to finance up to 85% of their new home.
Alternatively, first direct offers a three-year fix at 4.06% that has a maximum LTV of 85%. Available from the lender directly to borrowers in Great Britain and Northern Ireland, this mortgage charges a £490 product fee and has the incentive of a free valuation.
For a longer fixed term, NatWest and NatWest Int Sols offer the lowest five-year fixed rate for those moving home at 3.75%. With a maximum LTV of 60%, these deals charge a hefty arrangement fee of £1,495 and come with the perk of a free valuation. Borrowers in Great Britain and Northern Ireland can apply for these deals online from NatWest directly or via an intermediary.
If homemovers need a deal that can finance a larger proportion of their new property, Santander offers a Moneyfacts Best Buy deal that has a maximum LTV of 85%. It charges 3.99% and offers the additional benefits of a free valuation (up to £1,190) and £250 cashback. Borrowers in Great Britain and Northern Ireland can apply for this deal from Santander directly but should bear in mind it comes with an arrangement fee of £999.
Last updated: 17/12/2025
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 31 March 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 63 months reverting to 6.99% variable for term. 63 monthly payments of £1077.88 and 237 monthly payments of £1351.29. Total amount payable £389,207.17 includes loan amount, interest of £188,162, valuation fees of £0 and product fees of £995. The overall cost for comparison is 6.0% APRC representative.
Rate: 4.20% fixed until 31 March 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 63 months reverting to 6.99% variable for term. 63 monthly payments of £1077.88 and 237 monthly payments of £1351.29. Total amount payable £389,207.17 includes loan amount, interest of £188,162, valuation fees of £0 and product fees of £995. The overall cost for comparison is 6.0% APRC representative.
Rate: 4.20% fixed until 31 March 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 63 months reverting to 6.99% variable for term. 63 monthly payments of £1077.88 and 237 monthly payments of £1351.29. Total amount payable £389,282.17 includes loan amount, interest of £188,162, 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.
First-time buyers with a 10% deposit will find The Co-operative Bank for Intermediaries continues to charge the lowest two-year fixed rate of 4.10%, as well as the lowest two-year fix for those with a 5% deposit at 4.54%. Borrowers in Great Britain will need to apply through a selected intermediary to access these deals, which charge a £999 arrangement fee and offer the incentives of a free valuation and £250 cashback.
Meanwhile, NatWest, NatWest Int Sols and Royal Bank of Scotland offer the lowest five-year fixed rate of 4.20% on deals that can finance up to 90% LTV. All these providers charge a £995 product fee and offer a free valuation, with each lender also offering one deal with the extra perk of £250 cashback. Borrowers in Great Britain and Northern Ireland can apply for the NatWest deals directly or the NatWest Int Sols deals via an intermediary, while the Royal Bank of Scotland deals are only available from the lender directly to those in Great Britain, the Channel Islands and the Isle of Man.
For a five-year fix that can finance up to 95% LTV, Leek Building Society offers the lowest rate of 4.61% to borrowers in England and Wales. Available from the lender directly or via an intermediary, this deal charges a £995 product fee and offers the single perk of a free valuation.
If borrowers in Great Britain and Northern Ireland would prefer a mortgage without any product fees, Virgin Money offers a two-year fix at 4.23% and a five-year fix at 4.31% that can finance up to 90% LTV. Only available via intermediaries, these deals come with a free valuation, in addition to not charging any product fees.
Those with a 5% deposit who are buying an energy-efficient property may be interested in a two-year fix from Nationwide BS at 4.68%. The provider offers £250 cashback if your home has an EPC rating between 86 and 91, or a higher £500 cashback if it has a rating of 92 or above, in addition to the other incentives of a free valuation, £500 cashback and no product fees. First-time buyers in Great Britain and Northern Ireland (excluding the Scilly Isles) can access this two-year fix (which features on our Moneyfacts Best Buy charts) from the lender directly or through an intermediary.
First-time buyers looking to cut down on upfront costs could consider a Moneyfacts Best Buy deal from Virgin Money that doesn’t charge any additional product fees. This five-year fix charges 4.72% and comes with the incentives of a free valuation and £300 cashback. The deal is available from the lender directly or via an intermediary and is open to first-time buyers in Great Britain and Northern Ireland.
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