Last updated: 14 January 2026 at 14:10
Latest mortgage news: Selected fixed mortgage rates drop as experts predict a “booming” market in 2026.
Several mortgage lenders made cuts to their product range this week, causing some of the lowest fixed rates to drop further.
This seems to continue the trend of the past year, which saw the average two- and five-year fixed rates plummet by 0.63 and 0.34 percentage points respectively over 2025. Because of this decline, the average two-year fixed rate stood at 4.83% at the beginning of 2026 while the average five-year fixed rate was recorded at 4.91%.
Read more: Stage set for "booming" mortgage market in 2026
“The start to a New Year is typically a slow burner for mortgage re-pricing, but lower swap rates should incentivise lenders to pass on rate cuts in the coming weeks,” Rachel Springall, Finance Expert at Moneyfactscompare.co.uk, noted.
As borrowers hope for even more cuts this year, so they can access cheaper mortgages and lower monthly payments, Springall says that “expectations are high for a booming market in 2026”.
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: 14/01/2026
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.
While NatWest and its intermediary arm, NatWest Int Sols, offer the lowest two-year fixed remortgage rate for another week, this has dropped slightly after the lenders made reductions across selected products. Their deals now charge 3.64% and are available to homeowners across Great Britain and Northern Ireland. Borrowers can use these deals to finance up to 60% of their property’s value but should note they charge a hefty arrangement fee of £1,495. All the deals offer a free valuation, with the online-exclusive deal from NatWest and one of the deals from NatWest Int Sols offering the additional perk of free legal fees. Alternatively, NatWest Int Sols provides a separate deal that comes with £350 cashback instead.
Borrowers who need to finance a larger proportion of their property could consider a Moneyfacts Best Buy deal from first direct at 3.83% that has a maximum LTV of 75%. This two-year fix, which charges a £490 product fee, is available across Great Britain and Northern Ireland from the lender directly. It offers the incentives of a free valuation and free legal fees.
Barclays Mortgage continues to offer the lowest three-year fixed rate of 3.75% for remortgage borrowers but, after making selected changes across its mortgage range, it also now offers the lowest five-year fixed remortgage rate at 3.76%. Both options have a maximum loan-to-value (LTV) of 60% and come with the incentives of a free valuation and a choice of either free legal fees or £350 cashback. Borrowers in Great Britain and Northern Ireland can apply for these deals from the lender directly or via an intermediary but should bear in mind they charge a £999 arrangement fee.
For a three-year fixed remortgage that can finance up to 85% LTV, Furness BS offers a Moneyfacts Best Buy deal at 4.09% that borrowers in Great Britain can access directly or via an intermediary. This mortgage charges a £999 product fee and gives borrowers the perks of a free valuation (up to £665) and £250 cashback.
If remortgage borrowers want to fix for longer, HSBC has a five-year fixed deal at 3.84% that appears on our Moneyfacts Best Buy chart. With a maximum LTV of 75%, this deal charges a £999 product fee and offers a free valuation, as well as £300 cashback or free legal fees. It’s available across Great Britain and Northern Ireland from the bank directly or from selected intermediaries.
Last updated: 14/01/2026
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: 3.62% 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 3.62% fixed for 40 months reverting to 7.24% variable for term. 40 monthly payments of £1267.71 and 260 monthly payments of £1741.28. Total amount payable £504,590.20 includes loan amount, interest of £253,441, 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.
Homemovers in Great Britain and Northern Ireland who want to secure a two-year fixed mortgage will find the lowest rate remains at 3.55% this week. Offered by Santander, this deal comes with a £999 arrangement fee and can finance up to 60% LTV. Borrowers can apply for this deal from Santander directly or via an intermediary and, as extra incentives, they will receive a free valuation (up to £1,190) and £250 cashback. Considering its overall value, it features as a Moneyfacts Best Buy.
For a two-year fixed mortgage without any product fees, Barclays Mortgage offers a deal at 3.81% that borrowers in Great Britain and Northern Ireland can use to finance up to 75% of their property purchase. In addition to not charging a product fee, this mortgage comes with the benefit of a free valuation. This deal appears on our Moneyfacts Best Buy chart and is available from the lender directly or via an intermediary.
After certain lenders bucked the trend and raised rates, the lowest three-year fixed rate for homemovers edged higher to 3.62% and now comes from Halifax. Available from the bank directly, this deal has a maximum LTV of 60% and charges a £999 arrangement fee. It may particularly appeal to those moving to an energy-efficient home as it offers £250 cashback on properties with an Energy Performance Certificate (EPC) rating of 81 or higher. Homemovers across Great Britain and Northern Ireland are eligible to apply.
If homemovers own less equity, they could consider a Moneyfacts Best Buy deal from first direct that can finance up to 75% LTV. This three-year fix charges 3.86% alongside a £490 product fee and offers the perk of a free valuation. It is available to borrowers in Great Britain and Northern Ireland who apply via the lender directly.
For those wanting to lock in a fixed rate for longer, the lowest five-year fixed rate dipped lower this week after NatWest and NatWest Int Sols reduced selected rates. Now charging 3.74% alongside a sizeable arrangement fee of £1,495, these deals can finance up to 60% LTV and offer the benefit of a free valuation. Borrowers in Great Britain and Northern Ireland can apply for the NatWest deal online, via the lender directly, and the NatWest Int Sols option via an intermediary.
Alternatively, first direct offers a five-year fixed mortgage at 3.84% that has a higher maximum LTV of 75%. This Moneyfacts Best Buy deal is available across Great Britain and Northern Ireland and comes with a £490 product fee and the incentive of a free valuation. Borrowers can only access this deal by applying to the lender directly.
Last updated: 14/01/2026
Rate: 4.06% 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 4.06% fixed for 28 months reverting to 7.24% variable for term. 28 monthly payments of £1062.31 and 272 monthly payments of £1413.76. Total amount payable £415,436.40 includes loan amount, interest of £214,287, valuation fees of £100 and product fees of £999. The overall cost for comparison is 6.8% APRC representative.
Rate: 4.06% 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 4.06% fixed for 28 months reverting to 7.24% variable for term. 28 monthly payments of £1062.31 and 272 monthly payments of £1413.76. Total amount payable £415,436.40 includes loan amount, interest of £214,287, 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: 4.54% fixed until 30 April 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 4.54% fixed for 27 months reverting to 6.62% variable for term. 27 monthly payments of £1116.21 and 273 monthly payments of £1347.06. Total amount payable £399,034.05 includes loan amount, interest of £197,885, 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.
The lowest fixed rates for first-time buyers with a 10% deposit dropped this week as lenders made cuts.
Halifax and Lloyds Bank now offer the lowest two-year fixed rate of 4.06% for first-time buyers who need to finance up to 90% LTV. They charge a £999 arrangement fee and offer a Green Home cashback of £250 for those buying a property with an EPC rating of 81 or higher. Both deals are available from the lenders directly.
For a two-year fix that doesn’t charge any product fees, first-time buyers with a 10% deposit could consider a “fee-saver” deal from first direct at 4.21%. Available across Great Britain and Northern Ireland from the lender directly, this mortgage comes with a free valuation.
The same three lenders of NatWest, NatWest Int Sols and Royal Bank of Scotland (RBS) continue to charge the lowest five-year fixed rate for those with a 10% deposit, but this has dropped to a lower 4.15% after they made reductions this week. These lenders have two deals at this rate, with all options charging a £995 arrangement fee and offering a free valuation. One deal from each lender also offers the additional perk of £250 cashback. First-time buyers in Great Britain and Northern Ireland can apply for the NatWest deal from the lender directly and the deal from NatWest Int Sols via an intermediary, while those in Great Britain, the Channel Islands and the Isle of Man can apply for the RBS option from the bank directly.
The Co-operative Bank for Intermediaries offers the lowest two-year fixed rate on deals with a maximum LTV of 95% for another week, continuing to charge 4.54%. First-time buyers in Great Britain are eligible to apply for this deal via selected intermediaries, and, as extra incentives, they will receive a free valuation and £250 cashback. Note that this mortgage charges a £999 arrangement fee.
First-time buyers who are purchasing an energy-efficient home could consider a Moneyfacts Best Buy mortgage from Nationwide BS. This two-year fix charges 4.68% and offers £250 cashback for properties with an EPC rating between 86 and 91, or £500 cashback for those with a rating of 92 or higher. It also comes with a free valuation and £500 cashback for all borrowers, as well as the extra benefit of not charging any product fees. First-time buyers in Great Britain and Northern Ireland (excluding the Scilly Isles) are eligible to apply for this deal the lender or via an intermediary.
While Leek Building Society once again charges the lowest five-year fixed rate for first-time buyers with a 5% deposit, this is now at a lower 4.56% after it made cuts this week. Available across England and Wales, this deal charges a product fee of £995 and comes with the perk of a free valuation. Borrowers can apply for this mortgage (which features as a Moneyfacts Best Buy) from the building society directly or through an intermediary.
HSBC also offers a five-year fix with a maximum LTV of 95% that appears as a Moneyfacts Best Buy. While it charges a higher rate of 4.72%, it doesn’t have any product fees and comes with the appealing incentives of £1,500 cashback and a free valuation. This deal is available across Great Britain and Northern Ireland from the lender directly or via selected intermediaries.
Mortgage brokers remove a lot of the paperwork and hassle of getting a mortgage, as well as helping you access exclusive products and rates that aren’t available to the public. Mortgage brokers are regulated by the Financial Conduct Authority (FCA) and are required to pass specific qualifications before they can give you advice.
MAB is the preferred mortgage broker of Moneyfactscompare.co.uk
Get friendly, expert advice free of charge as a visitor of Moneyfactscompare.co.uk
Mortgage Advice Bureau have 1,600 UK advisers with 200 awards between them.
Speak to an award-winning mortgage broker today.
Call 0800 031 8553 or request a callback
Mortgage Advice Bureau offers fee free mortgage advice for MoneyfactsCompare visitors that call on 0808 149 9177. If you contact Mortgage Advice Bureau outside of these channels you may incur a fee of up to 1%. Lines are open Monday to Friday 8am to 8pm and Saturday 9am to 1pm excluding bank holidays. Calls may be recorded.
Your home may be repossessed if you do not keep up repayments on your mortgage.
A bridging loan can be used to purchase a property at auction, continue a purchase if your sale falls through, or for funding redevelopment projects. A lender could support your plans with between £50,000 and £25 million, depending on your circumstances.
All of our newsletters are available free by email to all Moneyfactscompare.co.uk users.
Send me Weekend Moneyfactscompare, Savers Friend, and Companies Friend.
Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time. Links to third parties on this page are paid for by the third party. You can find out more about the individual products by visiting their site. Moneyfactscompare.co.uk will receive a small payment if you use their services after you click through to their site. All information is subject to change without notice. Please check all terms before making any decisions. This information is intended solely to provide guidance and is not financial advice. Moneyfacts will not be liable for any loss arising from your use or reliance on this information. If you are in any doubt, Moneyfacts recommends you obtain independent financial advice.
Moneyfactscompare.co.uk will never contact you by phone to sell you any financial product. Any calls like this are not from Moneyfacts. Emails sent by Moneyfactscompare.co.uk will always be from news@moneyfacts-news.co.uk. Be ScamSmart.
Moneyfactscompare.co.uk will never contact you by phone to sell you any financial product. Any calls like this are not from Moneyfacts. Emails sent by Moneyfactscompare.co.uk will always be from news@moneyfacts-news.co.uk. Be ScamSmart.
Moneyfactscompare.co.uk will never contact you by phone to sell you any financial product. Any calls like this are not from Moneyfacts. Emails sent by Moneyfactscompare.co.uk will always be from news@moneyfacts-news.co.uk. Be ScamSmart.
Moneyfactscompare.co.uk will never contact you by phone to sell you any financial product. Any calls like this are not from Moneyfacts. Emails sent by Moneyfactscompare.co.uk will always be from news@moneyfacts-news.co.uk. Be ScamSmart.
Moneyfactscompare.co.uk will never contact you by phone to sell you any financial product. Any calls like this are not from Moneyfacts. Emails sent by Moneyfactscompare.co.uk will always be from news@moneyfacts-news.co.uk. Be ScamSmart.
Moneyfactscompare.co.uk will never contact you by phone to sell you any financial product. Any calls like this are not from Moneyfacts. Emails sent by Moneyfactscompare.co.uk will always be from news@moneyfacts-news.co.uk. Be ScamSmart.
