Last updated: 28 May 2025 at 14:00
Rate cutting momentum stalls as lenders hike prices while house sales hit four-year high.
The recent string of rate reductions across the fixed mortgage market seems to have stopped this week – remortgage borrowers and homemovers may be disappointed to see the lowest two- and five-year rates rising across both sectors.
This comes as the latest House Price Index from property site Zoopla revealed the number of house sales agreed upon during May hit its highest point since 2021.
Published today, the report attributed this dramatic increase to a combination of housing availability, with 13% more homes on the market compared to last year, as well as more favourable mortgage rates spurring on potential borrowers. Meanwhile, the average house price rose year-on-year to £268,250 as of April 2025, marking a 1.6% rise of £4,330.
This uplift in sales suggests the market may be recovering from the slump seen in the aftermath of stamp duty relief ending recently, returning to levels last seen during the pandemic. However, inflation soaring to 3.5% in April could curb progress over the coming months.
Below, we provide more information on these and other lowest fixed mortgage rates available to remortgage borrowers, homemovers and first-time buyers. 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.
Although we’ve highlighted the lowest rates across our mortgage charts, borrowers should always keep in mind that the lowest rate may not be the best, or most cost effective, deal for them. Instead, it is important to consider factors such as product fees and incentives when comparing mortgage deals, as these can have a significant impact on the cost of the mortgage. Consumers unsure of which deal is right for them should consider speaking to a mortgage broker, who will be able to provide advice on the best deal for their circumstances.
Last updated: 28/05/2025
Rate: 3.84% fixed for two years, before reverting to 6.74%
Initial period: 2 years
Product fee: £490
Maximum loan-to-value: 60%
APRC: 6.4%
Representative example: £210,000 mortgage over 25 years initially at 3.84% fixed for 24 months reverting to 6.74% variable for term. 24 monthly payments of £1089.99 and 276 monthly payments of £1424.67. Total amount payable £420,238.68 includes loan amount, interest of £209,369, valuation fees of £0 and product fees of £490. The overall cost for comparison is 6.4% APRC representative.
Rate: 3.84% fixed until 31 August 2027 before reverting to 6.74%
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 3.84% fixed for 27 months reverting to 6.74% variable for term. 27 monthly payments of £1089.99 and 273 monthly payments of £1421.50. Total amount payable £418,973.23 includes loan amount, interest of £207,499, valuation fees of £0 and product fees of £999. The overall cost for comparison is 6.4% APRC representative.
Rate: 3.89% fixed for three years, before reverting to 6.74%
Initial period: 3 years
Product fee: £490
Maximum loan-to-value: 60%
APRC: 6.2%
Representative example: £210,000 mortgage over 25 years initially at 3.89% fixed for 36 months reverting to 6.74% variable for term. 36 monthly payments of £1095.74 and 264 monthly payments of £1412.66. Total amount payable £413,258.88 includes loan amount, interest of £202,389, valuation fees of £0 and product fees of £490. The overall cost for comparison is 6.2% APRC representative.
Rate: 3.84% fixed for five years, before reverting to 6.74%
Initial period: 5 years
Product fee: £490
Maximum loan-to-value: 60%
APRC: 5.7%
Representative example: £210,000 mortgage over 25 years initially at 3.84% fixed for 60 months reverting to 6.74% variable for term. 60 monthly payments of £1089.99 and 240 monthly payments of £1385.82. Total amount payable £398,866.20 includes loan amount, interest of £187,996, valuation fees of £0 and product fees of £490. The overall cost for comparison is 5.7% APRC representative.
Rate: 3.84% fixed until 31 August 2030 before reverting to 6.74%
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 3.84% fixed for 63 months reverting to 6.74% variable for term. 63 monthly payments of £1089.99 and 237 monthly payments of £1382.50. Total amount payable £397,795.87 includes loan amount, interest of £186,322, valuation fees of £0 and product fees of £999. The overall cost for comparison is 5.7% APRC representative.
The lowest fixed rates for remortgage borrowers remain turbulent this week, with prices rising and falling between sectors.
With Santander making changes to its fixed range, the lowest two- and five-year fixed rates unfortunately inched higher to 3.84% and can now be found with first direct and HSBC. Able to finance up to 60% loan-to-value (LTV), the former’s two- and five-year deals each require £490 booking fees and are available direct from the lender across Great Britain and Northern Ireland. As added incentives, a free valuation is included as well as free legal fees, with the two-year variant also featuring as a Moneyfacts Best Buy.
Meanwhile, the two- and five-year mortgages from HSBC charge a higher £999 in booking fees to secure the same respective rates; however, they do include the choice between free legal fees or £300 cashback alongside a free valuation as bonus perks. Borrowers can still benefit from a 60% maximum LTV with these deals, which are available direct or via selected intermediaries across Great Britain and Northern Ireland.
Remortgage borrowers after a three-year deal will instead be glad to see the lowest rate dipping to 3.89%, which is also charged by first direct. Like its two- and five-year counterparts, this three-year option caters for up to 60% LTV and is accessible to those in Great Britain and Northern Ireland from a £490 booking fee. It also includes the same free valuation and free legal fee incentives.
If you have less equity in your home, however, you could consider an alternative three-year deal from first direct which can finance up to 80% LTV. Priced at 4.39%, it is subject to the same terms but earns a spot on our Moneyfacts Best Buy chart.
Last updated: 28/05/2025
Rate: 3.86% fixed until 31 August 2027 before reverting to 6.74%
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 3.86% fixed for 27 months reverting to 6.74% variable for term. 27 monthly payments of £1300.34 and 273 monthly payments of £1692.53. Total amount payable £498,313.87 includes loan amount, interest of £247,170, valuation fees of £0 and product fees of £999. The overall cost for comparison is 6.3% APRC representative.
Rate: 3.88% fixed for three years before reverting to 6.24%
Initial period: 3 years
Product fee: £999
Maximum loan-to-value: 60%
APRC: 5.8%
Representative example: £250,000 mortgage over 25 years initially at 3.88% fixed for 36 months reverting to 6.24% variable for term. 36 monthly payments of £1303.08 and 264 monthly payments of £1611.83. Total amount payable £473,583.00 includes loan amount, interest of £222,434, valuation fees of £0 and product fees of £999. The overall cost for comparison is 5.8% APRC representative.
Rate: 3.89% fixed until 30 September 2030 before reverting to 6.24%
Initial period: 5 years
Product fee: £899
Maximum loan-to-value: 60%
APRC: 5.4%
Representative example: £250,000 mortgage over 25 years initially at 3.89% fixed for 64 months reverting to 6.24% variable for term. 64 monthly payments of £1304.46 and 236 monthly payments of £1583.12. Total amount payable £458,130.76 includes loan amount, interest of £207,102, valuation fees of £0 and product fees of £899. The overall cost for comparison is 5.4% APRC representative.
Santander reshuffling its fixed mortgage prices also sees the lowest rates shift across the homebuyer market this week, with HSBC now charging the lowest two-year fix at 3.86% for borrowers in Great Britain and Northern Ireland. Costing £999 in booking fees, its deal can finance up to 60% of your new home and comes with a free valuation.
If you live in the same lending area but have a smaller deposit, a two-year deal from first direct may be of interest, as it caters for a higher 75% LTV. This Moneyfacts Best Buy charges 3.94% from a £490 booking fee and also comes packaged with a free valuation.
MPowered Mortgages continues to charge the lowest three-year fixed rate for homemovers across England and Wales, which remains at 3.88% for yet another week. You’ll be able to apply for this mortgage with a £999 arrangement fee along with a 40% deposit and can benefit from a free valuation.
Those looking to cut back on upfront costs, or in need of a higher LTV can again turn to first direct. This includes a three-year deal from the lender which also takes a spot as a Moneyfacts Best Buy and can service borrowers with only a 20% deposit. Priced at 4.34%, it is available across Great Britain and Northern Ireland with a £490 booking fee. As a bonus, this mortgage also throws in a free valuation incentive.
Homemovers after a longer five-year fixed deal can now find the lowest rate with Barclays Mortgage, though this has risen from 3.83% to 3.89% since last week. Offering a maximum 60% LTV, it charges £899 in arrangement fees and includes a free valuation up to a maximum value of £2,000,000. Borrowers can apply for this mortgage directly or via intermediaries across Great Britain and Northern Ireland.
Alternatively, HSBC offers a Moneyfacts Best Buy five-year deal charging 4.39% for homemovers in Great Britain and Northern Ireland; it can finance up to 90% LTV and requires a £999 booking fee. What’s more, this deal comes bundled with both a free valuation and £350 cashback.
Last updated: 28/05/2025
Rate: 4.47% fixed until 31 August 2027, before reverting to 7.74%
Initial period: 2 years
Product fee: £999
Maximum loan-to-value: 90%
APRC: 7.3%
Representative example: £200,000 mortgage over 25 years initially at 4.47% fixed for 27 months reverting to 7.74% variable for term. 27 monthly payments of £1108.26 and 273 monthly payments of £1479.31. Total amount payable £434,923.65 includes loan amount, interest of £233,775, valuation fees of £100 and product fees of £999. The overall cost for comparison is 7.3% APRC representative.
Rate: 4.47% fixed until 31 August 2027, before reverting to 7.74%
Initial period: 2 years
Product fee: £999
Maximum loan-to-value: 90%
APRC: 7.3%
Representative example: £200,000 mortgage over 25 years initially at 4.47% fixed for 27 months reverting to 7.74% variable for term. 27 monthly payments of £1108.26 and 273 monthly payments of £1479.31. Total amount payable £434,823.65 includes loan amount, interest of £233,775, valuation fees of £0 and product fees of £999. The overall cost for comparison is 7.3% APRC representative.
Rate: 4.38% fixed until 31 August 2030 before reverting to 7.84%
Initial period: 5 years
Product fee: £995
Maximum loan-to-value: 90%
APRC: 6.4%
Representative example: £200,000 mortgage over 25 years initially at 4.38% fixed for 63 months reverting to 7.59% variable for term. 63 monthly payments of £1098.09 and 237 monthly payments of £1418.82. Total amount payable £406,570.01 includes loan amount, interest of £205,440, valuation fees of £0 and product fees of £995. The overall cost for comparison is 6.4% APRC representative.
Rate: 4.83% fixed until 31 October 2027 before reverting to 7.12%
Initial period: 2 years
Product fee: £999
Maximum loan-to-value: 95%
APRC: 6.8%
Representative example: £200,000 mortgage over 25 years initially at 4.83% fixed for 29 months reverting to 7.12% variable for term. 29 monthly payments of £1149.46 and 271 monthly payments of £1407.12. Total amount payable £415,812.86 includes loan amount, interest of £214,664, valuation fees of £0 and product fees of £999. The overall cost for comparison is 6.8% APRC representative.
Rate: 4.75% fixed for five years before reverting to 8.14%
Initial period: 5 years
Product fee: £1,149
Maximum loan-to-value: 95%
APRC: 6.9%
Representative example: £200,000 mortgage over 25 years initially at 4.75% fixed for 60 months reverting to 8.14% variable for term. 60 monthly payments of £1140.23 and 240 monthly payments of £1491.28. Total amount payable £427,905.00 includes loan amount, interest of £226,321, valuation fees of £260 and product fees of £1149. The overall cost for comparison is 6.9% APRC representative.
The lowest two-year fixed rate for first-time buyers with a 10% deposit thankfully slipped to 4.47% this week after Halifax and Lloyds Bank slashed their prices. These respective deals are each available directly across Great Britain and Northern Ireland with £999 arrangement fees and include £250 cashback when moving to a property with an Energy Performance Certificate (EPC) score of 81 or more. It’s also worth noting that the mortgage from Lloyds Bank also includes a free valuation.
Leek Building Society again charges the lowest five-year fixed rate for borrowers joining the property ladder with 10% deposits. Its deal is priced at 4.38% and includes a £995 completion fee as well as a free valuation. Borrowers can apply for this option directly or via intermediaries across England and Wales.
Sitting close behind at 4.49%, a five-year fixed mortgage from Nationwide BS may instead appeal for those in Great Britain and Northern Ireland seeking a greater array of incentives. Although it charges a hefty £1,499 reservation fee, the deal includes £500 cashback on top of a free valuation; a further £250 is then available for those with an EPC score between 86 and 91, or £500 for scores of 92 or higher. Furthermore, it is also able to finance up to 90% of your new home.
Meanwhile, for first-time buyers with only a 5% deposit, The Co-operative Bank for Intermediaries once again charges the lowest two-year fixed rate at 4.83%. From a £999 arrangement fee, it comes with a free valuation as well as £250 cashback and is available across Great Britain.
If you’re looking to save on upfront costs, a two-year fixed deal from Barclays Mortgage charges no additional product fees and is priced at 4.90%. Part of the lender’s ‘Mortgage Guarantee Scheme’, this Moneyfacts Best Buy can also service a maximum 95% LTV and offers a free valuation for properties worth up to £2,000,000. Available across Great Britain and Northern Ireland, this option can be applied for directly through the lender or via intermediaries.
Similarly, the lowest five-year fixed rate for first-time buyers at a 95% LTV holds steady this week, with Monmouthshire BS again charging 4.75% on one of its deals. It comes with a £1,149 arrangement fee and is available across England and Wales (excluding the Scilly Isles, Isle of Man and the Channel Islands). Keep in mind that no incentives are included in this case.
If you’re looking for a little extra with your deal, you could look to a five-year fixed offering from HSBC, available to those in Great Britain and Northern Ireland. It charges 4.81% at a maximum 95% LTV and has no added product fees, however, it does include both a free valuation and £500 cashback to help with the costs of buying your first home. As a result, it earns a spot on our Moneyfacts Best Buy chart.
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