Last updated: 3 December 2025 at 14:50
Latest UK mortgage news: Mortgage lending grows in the third quarter of 2025, as HSBC lowers selected remortgage rates.
There was positive activity in the mortgage market during the third quarter of 2025, with remortgaging seeing a particularly significant increase, according to the latest UK Finance Household Finance Review.
It found that lenders advanced 557,000 remortgage loans over this period, 48% more than one year ago. However, most of these transactions were customers refinancing with their existing lender.
While remortgaging with your existing lender can be a relatively straightforward option, it may be possible to find lower rates and more suitable deals from other lenders, particularly as several providers are making reductions across their mortgage range. Indeed, after HSBC recently cut rates on a selection of its remortgage deals, the lowest two- and five-year fixed remortgage rates have dropped this week.
“Not every borrower will move lenders when they come to remortgage, but it is expected many will need to make a decision soon if they are coming offer a cheap fixed rate from five years ago,” commented Rachel Springall, Finance Expert at Moneyfactscompare.co.uk.
“Now is a great time for anyone looking for a new deal to seek advice from a broker to assess the latest options,” she continued.
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: 03/12/2025
Rate: 3.71% fixed until 28 February 2028 before reverting to 6.49%
Initial period: 2 years
Product fee: £999
Maximum loan-to-value: 60%
APRC: 6.2%
Representative example: £210,000 mortgage over 25 years initially at 3.71% fixed for 25 months reverting to 6.49% variable for term. 25 monthly payments of £1075.11 and 275 monthly payments of £1391.76. Total amount payable £411,085.75 includes loan amount, interest of £199,612, valuation fees of £0 and product fees of £999. The overall cost for comparison is 6.2% APRC representative.
Rate: 3.80% fixed until 2 March 2029 before reverting to 6.75%
Initial period: 3 years
Product fee: £999
Maximum loan-to-value: 60%
APRC: 6.1%
Representative example: £210,000 mortgage over 25 years initially at 3.80% fixed for 38 months reverting to 6.75% variable for term. 38 monthly payments of £1085.40 and 262 monthly payments of £1410.31. Total amount payable £412,350.42 includes loan amount, interest of £200,746, valuation fees of £0 and product fees of £999. The overall cost for comparison is 6.1% APRC representative.
Rate: 3.80% fixed until 28 February 2031 before reverting to 6.49%
Initial period: 5 years
Product fee: £999
Maximum loan-to-value: 60%
APRC: 5.5%
Representative example: £210,000 mortgage over 25 years initially at 3.80% fixed for 62 months reverting to 6.49% variable for term. 62 monthly payments of £1085.40 and 238 monthly payments of £1355.84. Total amount payable £391,458.72 includes loan amount, interest of £179,985, valuation fees of £0 and product fees of £999. The overall cost for comparison is 5.5% APRC representative.
HSBC lowered selected rates this week and, as a result, it now offers the lowest two- and five-year fixed remortgage rates at 3.71% and 3.80% respectively, with the two-year option earning a position on our Moneyfacts Best Buy charts. Both options can finance up to 60% loan-to-value (LTV) and are available across Great Britain and Northern Ireland via the lender directly or certain intermediaries. Although the deals charge a £999 product fee, remortgage borrowers can access the perks of a free valuation and the choice of either free legal fees or £300 cashback.
If remortgage borrowers in Great Britain need a two-year fix with a higher maximum LTV, Skipton BS offers a Moneyfacts Best Buy deal at 4.37% that can finance up to 90% of your property. Available from the building society directly or via an intermediary, it comes with a relatively small £495 product fee and the incentives of a free valuation and free legal fees.
Borrowers in Great Britain who prefer to lock in a fixed rate for longer could consider an alternative Moneyfacts Best Buy mortgage from Cumberland BS. The lender offers a five-year fixed deal at 4.13% that has a maximum LTV of 80% and provides the extra perks of a free valuation (on properties up to £750,000) and free legal fees. It charges a £999 arrangement fee and is available from the lender directly or via a selected intermediary.
Meanwhile, Santander continues to offer the lowest three-year fixed remortgage rate of 3.80% to borrowers in Great Britain and Northern Ireland. This deal has a maximum LTV of 60%, charges a £999 product fee and offers a range of incentives including £250 cashback or free legal fees. Moreover, those in England, Wales and Northern Ireland can receive a free valuation (up to £1,190) while borrowers in Scotland will get £95 towards valuation costs. Eligible borrowers can apply for this three-year fix from Santander or through an intermediary.
A three-year fixed remortgage deal from Halifax that features as a Moneyfacts Best Buy may be of interest to borrowers who need to finance up to 80% LTV. Charging 4.17% alongside a £999 arrangement fee, this deal comes with the extra benefits of a free valuation, free legal fees and a £250 Green Home cashback on properties with an Energy Performance Certificate (EPC) rating of 81 or higher. Borrowers in Great Britain and Northern Ireland are eligible to apply for this deal.
Last updated: 03/12/2025
Rate: 3.55% fixed until 2 March 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 26 months reverting to 6.75% variable for term. 26 monthly payments of £1258.27 and 274 monthly payments of £1691.19. Total amount payable £497,375.08 includes loan amount, interest of £246,101, 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 March 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 38 months reverting to 6.75% variable for term. 38 monthly payments of £1265.01 and 262 monthly payments of £1675.13. Total amount payable £488,228.44 includes loan amount, interest of £236,954, valuation fees of £0 and product fees of £999. The overall cost for comparison is 6.0% APRC representative.
Rate: 3.76% fixed until 2 March 2031 before reverting to 6.75%
Initial period: 5 years
Product fee: £999
Maximum loan-to-value: 60%
APRC: 5.6%
Representative example: £250,000 mortgage over 25 years initially at 3.76% fixed for 62 months reverting to 6.75% variable for term. 62 monthly payments of £1286.69 and 238 monthly payments of £1645.98. Total amount payable £472,792.02 includes loan amount, interest of £221,518, valuation fees of £0 and product fees of £999. The overall cost for comparison is 5.6% APRC representative.
For those planning to move home, the lowest fixed rates remained the same this week and continue be offered by Santander. The bank’s two-year fix charges 3.55% while its three- and five-year fixed deals charge slightly higher rates of 3.60% and 3.76% respectively, with all three options featuring on our Moneyfacts Best Buy charts. Homemovers can use these deals to finance up to 60% of their new home and, as additional benefits, they can receive a free valuation (up to £1,190) and £250 cashback which could help with moving costs. However, the deals also come with a £999 arrangement fee. All these mortgage deals are available to borrowers in Great Britain and Northern Ireland from Santander directly or via an intermediary.
However, it’s important to consider that the lowest mortgage rates won’t always be the most suitable option, or provide the best value, for your situation. Consequently, it may be worth considering some of the following deals that feature as Moneyfacts Best Buys based on their true cost and overall value.
For example, a two-year fixed deal from Nationwide BS at 4.08% may appeal to borrowers who need to finance up to 80% LTV. This deal doesn’t come with any product fees, and, as extra perks, it offers a free valuation along with £250 cashback if the property has an EPC rating between 86 and 91, or a higher £500 cashback if it has a score of 92 or more. This deal is available from the lender directly to homemovers in Great Britain and Northern Ireland, excluding the Scilly Isles.
Meanwhile, first direct offers a three-year fix at 4.06% that has a maximum LTV of 80%. It comes with a £490 product fee and a free valuation, with borrowers in Great Britain and Northern Ireland able to access it from the lender directly.
Alternatively, a five-year fixed deal from Santander charges 3.86% and can finance up to 75% LTV. Like the deals mentioned above, it has a £999 product fee and offers the incentives of a free valuation (on properties up to £750,000) and £250 cashback.
Last updated: 03/12/2025
Rate: 4.16% fixed until 29 February 2028 before reverting to 7.49%
Initial period: 2 years
Product fee: £999
Maximum loan-to-value: 90%
APRC: 7.1%
Representative example: £200,000 mortgage over 25 years initially at 4.16% fixed for 26 months reverting to 7.49% variable for term. 26 monthly payments of £1073.42 and 274 monthly payments of £1446.94. Total amount payable £425,519.48 includes loan amount, interest of £224,370, valuation fees of £100 and product fees of £999. The overall cost for comparison is 7.1% APRC representative.
Rate: 4.16% fixed until 29 February 2028 before reverting to 7.49%
Initial period: 2 years
Product fee: £999
Maximum loan-to-value: 90%
APRC: 7.1%
Representative example: £200,000 mortgage over 25 years initially at 4.16% fixed for 26 months reverting to 7.49% variable for term. 26 monthly payments of £1073.42 and 274 monthly payments of £1446.94. Total amount payable £425,519.48 includes loan amount, interest of £224,370, valuation fees of £100 and product fees of £999. The overall cost for comparison is 7.1% APRC representative.
Rate: 4.28% fixed until 28 February 2031 before reverting to 7.49%
Initial period: 5 years
Product fee: £999
Maximum loan-to-value: 90%
APRC: 6.3%
Representative example: £200,000 mortgage over 25 years initially at 4.28% fixed for 62 months reverting to 7.49% variable for term. 62 monthly payments of £1086.84 and 238 monthly payments of £1406.85. Total amount payable £403,363.38 includes loan amount, interest of £202,214, valuation fees of £100 and product fees of £999. The overall cost for comparison is 6.3% APRC representative.
Rate: 4.28% fixed until 28 February 2031 before reverting to 7.49%
Initial period: 5 years
Product fee: £999
Maximum loan-to-value: 90%
APRC: 6.3%
Representative example: £200,000 mortgage over 25 years initially at 4.28% fixed for 62 months reverting to 7.49% variable for term. 62 monthly payments of £1086.84 and 238 monthly payments of £1406.85. Total amount payable £403,363.38 includes loan amount, interest of £202,214, valuation fees of £100 and product fees of £999. The overall cost for comparison is 6.3% APRC representative.
Rate: 4.59% 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 4.59% fixed for 28 months reverting to 6.87% variable for term. 28 monthly payments of £1121.91 and 272 monthly payments of £1375.98. Total amount payable £406,829.04 includes loan amount, interest of £205,680, 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.
After making reductions across parts of its product range last week, Halifax and Lloyds Bank now offer the lowest two- and five-year fixed rates on deals that can finance up to 90% LTV at 4.16% and 4.28% respectively. First-time buyers in Great Britain and Northern Ireland are eligible to apply for these deals, which charge a £999 arrangement fee and only offer a single incentive: a £250 Green Home cashback for those buying a property with an EPC rating of 81 or higher. The Halifax deals are available from the bank or through an intermediary but the deals from Lloyds Bank can only be accessed from the lender directly.
First-time buyers with a 10% deposit who want to minimise upfront costs could consider deals from Virgin Money that don’t apply any extra product fees. Its two- and five-year fixed deals charge 4.32% and 4.34%, respectively, and have the additional benefit of a free valuation. These intermediary-only deals are available across Great Britain and Northern Ireland.
The lowest fixed rates for borrowers with a 5% deposit saw no change this week, as The Co-operative Bank for Intermediaries continues to charge the cheapest two-year fixed rate of 4.59% to first-time buyers in Great Britain. This mortgage, which borrowers can only apply for via selected intermediaries, comes with a £999 arrangement fee and the extra perks of a free valuation and £250 cashback.
For a longer fixed term, Leek Building Society offers the lowest five-year fixed rate of 4.61% on deals with a maximum LTV of 95%. The lender charges a £995 product fee on this deal but provides a free valuation as an additional benefit, helping it to feature on our Moneyfacts Best Buy chart. Note that only borrowers in England and Wales are eligible to apply for this deal, which is available from the building society directly or via intermediaries.
However, first-time buyers could access a more attractive package of incentives elsewhere. For example, HSBC offers a two-year fix at 4.84% and a five-year fix at 4.77% that don’t charge any product fees and offer a free valuation. But, perhaps the most attractive feature of these deals is the cashback borrowers can receive, with the two-year deal paying £1,000 and the five-year deal paying an even larger £1,500. First-time buyers in Great Britain and Northern Ireland can access these deals from HSBC directly or by going through a selected intermediary.
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