Last updated: 23 July 2025 at 13:10
Many of the lowest mortgage rates continue to fall as the FCA confirms simplified mortgage rules.
It’s a relatively encouraging picture for those looking to take out a mortgage as lenders continue to make cuts. As a result, some of the lowest fixed rates for remortgage borrowers and homemovers dropped this week, while all the lowest rates for first-time buyers saw a downturn.
This comes as the Financial Conduct Authority (FCA) confirmed certain changes yesterday (22 July), that aim to simplify mortgage lending and support homeownership. For example, it states that borrowers should find it easier to reduce their mortgage term and remortgage with a new lender, which could help them save money on their mortgage.
Easing regulations have also prompted lenders to relax their lending rules and offer larger mortgages to borrowers over recent weeks (as long as the loans are still affordable). These changes, combined with lower mortgage rates, could help more people get approved for a mortgage and achieve their homeownership goals.
“Consumer needs have changed over recent years, and our rules are changing too,” commented Emad Aladhal, Director of Retail Banking at the FCA.
“We want lenders to use these changes to innovate and better serve aspiring homeowners and existing borrowers,” Aladhal explained.
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: 23/07/2025
Rate: 3.79% fixed until 30 September 2027 before reverting to 6.24%
Initial period: 2 years
Product fee: £999
Maximum loan-to-value: 60%
APRC: 6.0%
Representative example: £210,000 mortgage over 25 years initially at 3.79% fixed for 26 months reverting to 6.24% variable for term. 26 monthly payments of £1084.25 and 274 monthly payments of £1361.51. Total amount payable £402,703.24 includes loan amount, interest of £191,244, valuation fees of £0 and product fees of £999. The overall cost for comparison is 6.0% APRC representative.
Rate: 3.86% fixed until 31 December 2028 before reverting to 7.12%
Initial period: 3 years
Product fee: £999
Maximum loan-to-value: 60%
APRC: 6.3%
Representative example: £210,000 mortgage over 25 years initially at 3.86% fixed for 41 months reverting to 7.12% variable for term. 41 monthly payments of £1092.29 and 259 monthly payments of £1451.40. Total amount payable £422,175.49 includes loan amount, interest of £210,696, valuation fees of £0 and product fees of £999. The overall cost for comparison is 6.3% APRC representative.
Rate: 3.86% fixed until 30 September 2030 before reverting to 6.24%
Initial period: 5 years
Product fee: £999
Maximum loan-to-value: 60%
APRC: 5.4%
Representative example: £210,000 mortgage over 25 years initially at 3.86% fixed for 62 months reverting to 6.24% variable for term. 62 monthly payments of £1092.29 and 238 monthly payments of £1330.84. Total amount payable £385,920.90 includes loan amount, interest of £174,462, valuation fees of £0 and product fees of £999. The overall cost for comparison is 5.4% APRC representative.
Rate: 3.86% fixed until 30 September 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 3.86% fixed for 62 months reverting to 6.74% variable for term. 62 monthly payments of £1092.29 and 238 monthly payments of £1384.12. Total amount payable £398,616.54 includes loan amount, interest of £187,143, valuation fees of £0 and product fees of £999. The overall cost for comparison is 5.7% APRC representative.
After Barclays Mortgage cut rates, it now offers the lowest two-year fixed rate for remortgage borrowers at 3.79%. It also continues to offer the joint lowest five-year fixed rate of 3.86%, which is unchanged from last week. Both deals, which are available from the lender directly or via intermediaries, can finance up to 60% loan-to-value (LTV) and charge a £999 arrangement fee. As additional incentives, borrowers can receive a free valuation and a choice of free legal fees or £350 cashback.
HSBC also offers a five-year fixed deal at 3.86% which has a maximum LTV of 60% and charges a £999 product fee. Borrowers can apply for this deal from HSBC directly or via selected intermediaries and, as extra perks, they can receive a free valuation and either free legal fees or £300 cashback.
For an alternative two-year fix that doesn’t charge any product fees, remortgage borrowers could consider a Moneyfacts Best Buy deal from Barclays Mortgage that charges 4.03%. It can finance up to 60% LTV and, as well as no product fees, it comes with the additional benefits of a free valuation, free legal fees and £150 cashback. This deal, and all the above deals, are available across Great Britain and Northern Ireland.
The lowest three-year fixed remortgage rate dropped this week after The Co-operative Bank for Intermediaries reduced selected rates across its mortgage range. This lender offers a deal at 3.86% that can finance up to 60% of a property’s value and comes with an arrangement fee of £999, as well as the incentives of a free valuation, free legal fees and £250 cashback. Borrowers in Great Britain are eligible to apply for this deal, which is only available via selected intermediaries.
Remortgage borrowers who need to finance a larger proportion of their property could consider a Moneyfacts Best Buy from Furness BS that has a maximum LTV of 80%. This three-year fix charges 4.23% and a £999 product fee and comes with the incentives of a free valuation (up to £665) and £250 cashback. It’s available from the lender directly or via intermediaries to borrowers in Great Britain.
Last updated: 23/07/2025
Rate: 3.76% fixed until 30 September 2027 before reverting to 6.24%
Initial period: 2 years
Product fee: £899
Maximum loan-to-value: 60%
APRC: 5.9%
Representative example: £250,000 mortgage over 25 years initially at 3.76% fixed for 26 months reverting to 6.24% variable for term. 26 monthly payments of £1286.69 and 274 monthly payments of £1620.47. Total amount payable £478,491.72 includes loan amount, interest of £227,463, valuation fees of £0 and product fees of £899. The overall cost for comparison is 5.9% APRC representative.
Rate: 3.87% fixed until 2 November 2028 before reverting to 6.75%
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 3.87% fixed for 39 months reverting to 6.75% variable for term. 39 monthly payments of £1301.71 and 261 monthly payments of £1678.99. Total amount payable £490,257.08 includes loan amount, interest of £238,983, valuation fees of £0 and product fees of £999. The overall cost for comparison is 6.1% APRC representative.
Rate: 3.90% fixed until 2 November 2030 before reverting to 6.75%
Initial period: 5 years
Product fee: £999
Maximum loan-to-value: 60%
APRC: 5.7%
Representative example: £250,000 mortgage over 25 years initially at 3.90% fixed for 63 months reverting to 6.75% variable for term. 63 monthly payments of £1305.83 and 237 monthly payments of £1648.97. Total amount payable £474,347.18 includes loan amount, interest of £223,073, valuation fees of £0 and product fees of £999. The overall cost for comparison is 5.7% APRC representative.
Those planning to move home will find the lowest two-year fixed rate dropped further this week, with a deal from Barclays Mortgage charging 3.76%. With a maximum LTV of 60%, this deal charges an arrangement fee of £899 and comes with the perk of a free valuation. It’s available to borrowers across Great Britain from the lender directly or via intermediaries.
For a two-year fix that can finance a larger proportion of their new home, borrowers may be interested in a Moneyfacts Best Buy from first direct at 3.99%. This deal has a maximum LTV of 75% and comes with a relatively small product fee of £490 and the perk of a free valuation. Borrowers in Great Britain and Northern Ireland can apply for this deal from the lender directly.
For a longer fix, Santander continues to offer the lowest three-year fixed rate for homemovers at 3.87%, as well as the lowest five-year fixed rate at 3.90%. Both deals can finance up to 60% of your new property purchase and charge a £999 arrangement fee. Homemovers in Great Britain and Northern Ireland can apply for these deals from Santander directly and will receive a free valuation (up to £1,190) as an extra incentive.
Alternatively, TSB offers a three-year fixed deal at 4.04% that has a maximum LTV of 75%. Available from the bank directly to borrowers in Great Britain, the deal comes with the incentive of a free valuation and a marginally smaller product fee of £995. When considering its overall value, it features as a Moneyfacts Best Buy.
Homemovers in search of a five-year fix without any product fees could consider a Moneyfacts Best Buy from Barclays Mortgage. Charging 3.99%, this deal can finance up to 60% LTV and offers the extra perk of a free valuation. It’s available from the bank directly or via intermediaries to borrowers across Great Britain and Northern Ireland.
Last updated: 23/07/2025
Rate: 4.28% fixed until 30 September 2027 before reverting to 6.74%
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 4.28% fixed for 26 months reverting to 6.74% variable for term. 26 monthly payments of £1086.84 and 274 monthly payments of £1359.24. Total amount payable £401,833.60 includes loan amount, interest of £200,690, valuation fees of £0 and product fees of £999. The overall cost for comparison is 6.5% APRC representative.
Rate: 4.28% fixed until 31 December 2027 before reverting to 7.12%
Initial period: 2 years
Product fee: £999
Maximum loan-to-value: 90%
APRC: 6.7%
Representative example: £200,000 mortgage over 25 years initially at 4.28% fixed for 29 months reverting to 7.12% variable for term. 29 monthly payments of £1086.84 and 271 monthly payments of £1401.05. Total amount payable £412,351.91 includes loan amount, interest of £211,203, valuation fees of £0 and product fees of £999. The overall cost for comparison is 6.7% APRC representative.
Rate: 4.28% fixed for five years before reverting to 8.24%
Initial period: 5 years
Product fee: £999
Maximum loan-to-value: 90%
APRC: 6.8%
Representative example: £200,000 mortgage over 25 years initially at 4.28% fixed for 60 months reverting to 8.24% variable for term. 60 monthly payments of £1086.84 and 240 monthly payments of £1490.53. Total amount payable £424,151.60 includes loan amount, interest of £222,938, valuation fees of £75 and product fees of £999. The overall cost for comparison is 6.8% 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: 7.6%
Representative example: £250,000 mortgage over 25 years initially at 4.70% fixed for 24 months reverting to 7.99% variable for term. 24 monthly payments of £1418.11 and 276 monthly payments of £1894.62. Total amount payable £558,563.76 includes loan amount, interest of £306,950, valuation fees of £290 and product fees of £1149. The overall cost for comparison is 7.6% 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: £250,000 mortgage over 25 years initially at 4.60% fixed for 60 months reverting to 7.99% variable for term. 60 monthly payments of £1403.81 and 240 monthly payments of £1838.90. Total amount payable £527,178.60 includes loan amount, interest of £275,565, valuation fees of £290 and product fees of £1149. The overall cost for comparison is 6.8% APRC representative.
Encouragingly for those looking to take their first steps onto the property ladder, the lowest two- and five-year fixed rates for buyers with a 5% or 10% deposit all dropped this week.
HSBC and The Co-operative Bank for Intermediaries both offer two-year fixed deals at 4.28% that can finance up to 90% LTV, with both deals also charging a £999 product fee. Both lenders offer borrowers the additional perks of a free valuation and £250 cashback. While the HSBC deal is available across Great Britain and Northern Ireland from the lender directly or via selected intermediaries, the deal from The Co-operative Bank for Intermediaries is only available in Great Britain via selected intermediaries.
Those with a 10% deposit in search of a longer fix will find Furness BS offers the lowest five-year fixed rate for first-time buyers at 4.28%. This deal, which comes with a £999 product fee and the perks of a free valuation (up to £665) and £250 cashback, is available to borrowers across Great Britain from the lender directly or via intermediaries.
Alternatively, HSBC offers a five-year fix with a maximum LTV of 90% at 4.44% that doesn’t charge any product fees. Borrowers in Great Britain and Northern Ireland can apply for this deal from HSBC directly or via selected intermediaries and can receive the extra incentives of a free valuation and £350 cashback.
After Monmouthshire BS cut rates this week, it now offers the lowest two- and five-year fixed rates for borrowers with a 5% deposit at 4.70% and 4.60% respectively. However, it’s worth noting that borrowers will need to pay product fees totalling £1,149 and won’t receive any additional perks as part of their deal. Nevertheless, the five-year fix features as a Moneyfacts Best Buy. Available from the lender directly or via intermediaries, these deals are only open to borrowers in England and Wales, but not the Scilly Isles, the Isle of Man or the Channel Islands.
First-time buyers who would prefer a deal with more benefits could consider a Moneyfacts Best Buy two-year fix from HSBC at 4.94%. This deal, which has a maximum LTV of 95%, doesn’t charge any product fees and comes with the perks of a free valuation and £250 cashback. It is available to borrowers in Great Britain and Northern Ireland from HSBC directly or via selected intermediaries.
For a five-year fixed deal without any product fees, first-time buyers with a 5% deposit may be interested in a Moneyfacts Best Buy from Santander at 4.70%. Borrowers in Great Britain and Northern Ireland are eligible to apply for this deal, which comes with the extra perks of a free valuation (up to £1,190) and £250 cashback. It is available from Santander directly.
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