Last updated: 4 February 2026 at 13:00
Latest mortgage news: Several mortgage lenders have started to raise rates, but could a new 98% LTV mortgage from Santander help first-time buyers?
This week saw a few major lenders hike rates on their fixed mortgage deals, including HSBC, Nationwide BS and NatWest.
While this may be disappointing for borrowers, it wasn’t all bad news for first-time buyers as Santander launched a five-year, 98% loan-to-value (LTV) “My First Mortgage ” that’s designed to help people get on the property ladder. It means individuals can buy their first home with a deposit of just £10,000, but there is a range of terms and exclusions to consider, such as the fact you can only borrow up to 4.45 times your annual income (unlike other mortgage deals which could allow you to borrow up to 5.5 or 6 times your income).
“It’s encouraging to see more support for buyers who have small deposits, with Santander making headlines with its new 98% loan-to-value deal,” Rachel Springall, Finance Expert at Moneyfactscompare.co.uk, commented.
However, she adds that, outside of the big banks, “building societies have been working hard to support new buyers, leading the charge to provide more innovative products”.
As a result, it’s a good idea to seek professional advice if you’re buying your first home, as there are so many different deals to choose from. A broker will be able to discuss the pros and cons of each option and help you find the most suitable mortgage for you.
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: 04/02/2026
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: 6.4%
Representative example: £210,000 mortgage over 25 years initially at 3.64% fixed for 26 months reverting to 6.74% variable for term. 26 monthly payments of £1067.14 and 274 monthly payments of £1420.38. Total amount payable £418,804.76 includes loan amount, interest of £206,930, valuation fees of £0 and product fees of £1495. The overall cost for comparison is 6.4% 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: 6.4%
Representative example: £210,000 mortgage over 25 years initially at 3.64% fixed for 26 months reverting to 6.74% variable for term. 26 monthly payments of £1067.14 and 274 monthly payments of £1420.38. Total amount payable £418,804.76 includes loan amount, interest of £206,930, valuation fees of £0 and product fees of £1495. The overall cost for comparison is 6.4% 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 37 months reverting to 5.74% variable for term. 37 monthly payments of £1079.68 and 263 monthly payments of £1294.10. Total amount payable £381,755.46 includes loan amount, interest of £170,296, valuation fees of £0 and product fees of £999. The overall cost for comparison is 5.4% APRC representative.
Rate: 3.79% fixed for five years before reverting to 6.24%
Initial period: 5 years
Product fee: £490
Maximum loan-to-value: 60%
APRC: 5.4%
Representative example: £210,000 mortgage over 25 years initially at 3.79% fixed for 60 months reverting to 6.24% variable for term. 60 monthly payments of £1084.25 and 240 monthly payments of £1330.95. Total amount payable £385,353.00 includes loan amount, interest of £174,483, valuation fees of £0 and product fees of £490. The overall cost for comparison is 5.4% APRC representative.
An online-exclusive deal from NatWest and two deals from the bank’s intermediary arm, NatWest Int Sols, offer the lowest two-year fixed remortgage rate for another week. Charging 3.64%, these deals have a maximum loan-to-value (LTV) of 60% and come with a sizeable arrangement fee of £1,495, but they also provide a range of attractive incentives. All these mortgages offer a free valuation, with borrowers able to receive free legal fees from the NatWest deal and one of the NatWest Int Sols deals, with the other option from NatWest Int Sols offering £350 cashback instead. Borrowers across Great Britain and Northern Ireland are eligible to apply for these mortgages.
Those who own less equity in their homes could instead consider a Moneyfacts Best Buy deal from first direct at 3.83%. This two-year fix can finance up to 75% LTV and charges a relatively small product fee of £490. Borrowers in Great Britain and Northern Ireland can access this mortgage by applying to the lender directly and, as additional incentives, they will receive a free valuation and free legal fees.
Remortgage borrowers who would prefer a three-year fixed deal will find Barclays Mortgage continues to offer the lowest rate of 3.75%. Available to those in Great Britain and Northern Ireland, this deal can finance up to 60% LTV and comes with the perks of a free valuation and a choice between free legal fees and £350 cashback. Borrowers can access this deal from the bank directly or via an intermediary but should bear in mind it charges a £999 arrangement fee.
Alternatively, Skipton BS offers a three-year fix at 4.28% to remortgage borrowers in Great Britain that has a much higher maximum LTV of 85%. Featuring as a Moneyfacts Best Buy, it doesn’t charge any product fees and comes with the additional benefits of a free valuation and free legal fees. It is available from Skipton BS directly or from intermediaries.
After certain lenders raised their mortgage rates, the lowest five-year fixed remortgage rate has edged higher to 3.79% and is now offered by first direct. Borrowers in Great Britain and Northern Ireland can apply for this five-year deal from the lender directly to finance up to 60% of their property’s value. While it charges a £490 product fee, it provides borrowers with the benefits of a free valuation and free legal fees.
Elsewhere, borrowers who need to finance up to 80% of their property’s value could consider a different five-year remortgage deal from first direct that features on our Moneyfacts Best Buy chart. Charging 4.13% alongside a £490 product fee, it comes with the same incentives of a free valuation and free legal fees as the previous deal and is available across the same lending area.
Last updated: 04/02/2026
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: 6.7%
Representative example: £250,000 mortgage over 25 years initially at 3.55% fixed for 27 months reverting to 7.24% variable for term. 27 monthly payments of £1258.27 and 273 monthly payments of £1761.46. Total amount payable £516,000.87 includes loan amount, interest of £264,852, valuation fees of £100 and product fees of £999. The overall cost for comparison is 6.7% 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: 6.7%
Representative example: £250,000 mortgage over 25 years initially at 3.55% fixed for 27 months reverting to 7.24% variable for term. 27 monthly payments of £1258.27 and 273 monthly payments of £1761.46. Total amount payable £516,000.87 includes loan amount, interest of £264,852, valuation fees of £100 and product fees of £999. The overall cost for comparison is 6.7% APRC representative.
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 26 months reverting to 6.50% variable for term. 26 monthly payments of £1258.27 and 274 monthly payments of £1655.04. Total amount payable £487,469.98 includes loan amount, interest of £236,196, valuation fees of £0 and product fees of £999. The overall cost for comparison is 6.1% 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: 6.4%
Representative example: £250,000 mortgage over 25 years initially at 3.60% fixed for 39 months reverting to 7.24% variable for term. 39 monthly payments of £1265.01 and 261 monthly payments of £1742.51. Total amount payable £505,279.50 includes loan amount, interest of £254,131, valuation fees of £100 and product fees of £999. The overall cost for comparison is 6.4% APRC representative.
Rate: 3.73% 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 3.73% fixed for 62 months reverting to 6.74% variable for term. 62 monthly payments of £1282.61 and 238 monthly payments of £1643.78. Total amount payable £472,286.46 includes loan amount, interest of £220,741, valuation fees of £0 and product fees of £1495. The overall cost for comparison is 5.6% APRC representative.
Rate: 3.73% 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 3.73% fixed for 62 months reverting to 6.74% variable for term. 62 monthly payments of £1282.61 and 238 monthly payments of £1643.78. Total amount payable £472,286.46 includes loan amount, interest of £220,741, valuation fees of £0 and product fees of £1495. The overall cost for comparison is 5.6% APRC representative.
Unfortunately for those planning to move home, the lowest two- and five-year fixed rates have seen an uptick this week after certain lenders raised rates.
Three lenders now charge the lowest two-year fixed rate for homemovers at 3.55%, including Santander. Borrowers in Great Britain and Northern Ireland can apply for the Santander deal from the bank directly to finance up to 60% of their new property purchase and, as extra incentives, they will receive a free valuation (up to £1,190) and £250 cashback. This deal charges a £999 arrangement fee and, considering its overall value and true cost, it features on our Moneyfacts Best Buy chart.
Halifax and Lloyds Bank also offer two-year fixed deals at 3.55% to those in Great Britain and Northern Ireland. With a maximum LTV of 60%, these mortgages charge a £999 product fee and come with the perk of £250 cashback to those buying a property with an Energy Performance Certificate (EPC) rating of 81 or higher. These deals can be found by applying to the lenders directly.
Meanwhile, the lowest three-year fixed rate for homemovers remains unchanged at 3.60% and continues to come from Halifax. Like the Halifax deal above, this three-year fix can finance up to 60% LTV, charges a £999 arrangement fee and offers the incentive of £250 cashback for properties with an EPC rating of 81 or higher.
Alternatively, if homemovers need a deal with a higher maximum LTV of 85%, first direct offers a Moneyfacts Best Buy three-year fix at 4.06%. It charges a £490 product fee and offers a free valuation as the only incentive. To access this deal, borrowers in Great Britain and Northern Ireland will need to apply via first direct.
Even though NatWest and NatWest Int Sols offer the lowest five-year fixed rate for another week, this is at a slightly higher 3.73% after the lenders made selected increases across their range of mortgages. Homemovers across Great Britain and Northern Ireland can access the NatWest deal online, via the lender directly, while the deal from NatWest Int Sols can only be found via intermediaries. These deals charge a sizeable arrangement fee of £1,495, have a maximum LTV of 60% and provide a free valuation as an extra incentive.
Homemovers who would prefer a five-year fix with a smaller upfront cost could consider a deal from first direct at 3.75% that only charges a £490 product fee. This five-year mortgage, which is available to those in Great Britain and Northern Ireland, can finance up to 60% of your new property purchase and comes with a free valuation. This deal can be accessed by applying to the lender directly.
Last updated: 04/02/2026
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 27 months reverting to 7.24% variable for term. 27 monthly payments of £1055.67 and 273 monthly payments of £1414.21. Total amount payable £415,731.42 includes loan amount, interest of £214,582, 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 27 months reverting to 7.24% variable for term. 27 monthly payments of £1055.67 and 273 monthly payments of £1414.21. Total amount payable £415,731.42 includes loan amount, interest of £214,582, 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 62 months reverting to 6.74% variable for term. 62 monthly payments of £1072.31 and 238 monthly payments of £1325.21. Total amount payable £382,928.20 includes loan amount, interest of £181,883, 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 62 months reverting to 6.74% variable for term. 62 monthly payments of £1072.31 and 238 monthly payments of £1325.21. Total amount payable £382,928.20 includes loan amount, interest of £181,883, 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 62 months reverting to 6.74% variable for term. 62 monthly payments of £1072.31 and 238 monthly payments of £1325.21. Total amount payable £383,003.20 includes loan amount, interest of £181,883, 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: £250,000 mortgage over 25 years initially at 4.47% fixed for 28 months reverting to 6.62% variable for term. 28 monthly payments of £1385.33 and 272 monthly payments of £1682.05. Total amount payable £497,455.84 includes loan amount, interest of £246,307, valuation fees of £0 and product fees of £999. The overall cost for comparison is 6.4% APRC representative.
Rate: 4.53% fixed until 30 April 2031 before reverting to 6.74%
Initial period: 5 years
Product fee: £1,499
Maximum loan-to-value: 95%
APRC: 6.0%
Representative example: £250,000 mortgage over 25 years initially at 4.53% fixed for 62 months reverting to 6.74% variable for term. 62 monthly payments of £1393.84 and 238 monthly payments of £1667.67. Total amount payable £485,067.54 includes loan amount, interest of £233,324, valuation fees of £0 and product fees of £1499. The overall cost for comparison is 6.0% APRC representative.
Halifax and Lloyds Bank continue to offer the lowest rate of 4.00% on two-year fixed mortgages that can finance up to 90% LTV. First-time buyers in Great Britain and Northern Ireland are eligible to apply for these mortgages from the banks directly but should note they will need to pay a £999 arrangement fee. These deals may particularly appeal to those buying an energy-efficient home as the only incentive on offer is £250 cashback if your property has an EPC rating of at least 81.
Alternatively, Yorkshire Building Society offers an “Income Lifter” mortgage at 4.09% that could allow first-time buyers to borrow a higher multiple of their income (subject to meeting the lender’s eligibility criteria and its affordability checks). This two-year fix can finance up to 90% LTV and comes with a product fee of £995 and the perk of a free valuation. Borrowers in Great Britain and Northern Ireland can access this deal from the building society directly.
Despite increasing the rate charged on their five-year fixed deals for those with a 10% deposit to 4.15%, NatWest, NatWest Int Sols and Royal Bank of Scotland (RBS) still offer the lowest rate in this sector. First-time buyers will need to pay a £995 arrangement fee if they take out one of these mortgages but, as additional perks, they can receive a free valuation and £250 cashback (from one deal from each lender). The NatWest deals are available online from the bank directly while the NatWest Int Sols deals can be accessed via intermediaries, with borrowers across Great Britain and Northern Ireland eligible to apply. However, the RBS mortgages are only available to those in Great Britain, the Channel Islands or the Isle of Man and can be accessed from the lender directly.
The lowest fixed rates for first-time buyers with a 5% deposit are unchanged this week. Continuing to offer the lowest two-year fixed rate on deals with a maximum LTV of 95% is The Co-operative Bank for Intermediaries, with borrowers in Great Britain able to access this mortgage from selected intermediaries. It comes with the incentives of a free valuation and £250 cashback but also charges a £999 arrangement fee.
Meanwhile, for a longer-term mortgage that can finance up to 95% LTV, Clydesdale Bank still offers the lowest five-year fixed rate of 4.53% on a broker-exclusive deal. Borrowers in Great Britain can access this deal via intermediaries and will receive a free valuation as an additional benefit. However, it’s important to bear in mind that this mortgage comes with a hefty arrangement fee of £1,499.
Because first-time buyers often face a range of costs when getting on the property ladder, they may prefer a deal without paying any upfront costs. For example, HSBC offers a two-year fix at 4.74% and a five-year fix at 4.79% that don’t charge any product fees and feature on our Moneyfacts Best Buy chart. These mortgages can finance up to 95% LTV, and, as extra perks, first-time buyers will receive a free valuation as well as £1,000 cashback (on the two-year option) or £1,500 cashback (if they choose the five-year deal). Both deals are available to first-time buyers in Great Britain and Northern Ireland and can be accessed from HSBC directly or via selected intermediaries.
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