The best UK residential mortgage rates this week

Last updated: 15 January 2025 at 16:45

Most lowest fixed mortgage rates hold steady despite concerns over hikes.

Despite concerns lenders would hike rates in response to recent swap market volatility and wider economic pressures, average mortgage rates have so far proved fairly resilient.

Over the past week, there’s been only a slight increase in the typical two-year fixed mortgage rate from 5.47% last Wednesday to 5.49% today (15 January 2025); the average price of a five-year fixed deal, meanwhile, rose by mere margins from 5.24% to 5.27%.

Those looking for a new mortgage deal this week will therefore find many of the lowest fixed rates continue to hold steady.

And, with the Office for National Statistics (ONS) today revealing UK inflation unexpectedly decelerated to 2.5% in the year to December 2024, this may further instil confidence in borrowers and lenders alike as expectations for the Bank of England to reduce the base rate strengthen.

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, you can visit our mortgage charts.

The best remortgage rates

The lowest two-year fixed rate for remortgage borrowers saw a slight uptick over the past week after Leeds BS amended its product line; the cheapest-priced deal in this sector can now be found from fellow mutual, Principality BS. Available direct or via intermediaries to refinance customers across England and Wales looking to borrow at least £140,000, its mortgage charges 4.19% to cater to a maximum loan-to-value (LTV) of 65%. However, while it includes a free valuation as an incentive, bear in mind it costs an above average £1,499 in product fees.

An alternative from Yorkshire Building Society may therefore be worth considering. Despite charging a moderately higher 4.30%, its deal costs less in completion fees at £995. What’s more, it can finance a larger portion of your property – up to 75% LTV. Widely available across Great Britain and Northern Ireland, remortgage borrowers can apply directly with the lender, with free legal fees as well as a free valuation included as incentives. When taking into account all of these features, the mortgage earns a spot on our Moneyfacts Best Buy charts based on its overall true cost.

Otherwise, lowest fixed remortgage rates across other terms held steady; Halifax, for instance, continues to charge the cheapest three-year fixed rate at 4.18%. This mortgage can finance up to 60% LTV and includes a free valuation and free legal fees as incentives. Furthermore, you’ll also receive £250 cashback as an added extra if your home has an Energy Performance Certificate (EPC) rating of 81 more. Those in Great Britain and Northern Ireland interested in applying can do so direct with the lender but must borrow at least £100,000 and budget for the £999 product fee.

That being said, you’ll need to consider other options if you have less equity in your property. Another Moneyfacts Best Buy from Yorkshire Building Society, for example, can finance up to 80% of your home at 4.54%, fixed for three years. Also with a lending area spanning Great Britain and Northern Ireland, this deal can be applied for direct, costs £995 in completion fees and includes both a free valuation as well as free legal fees as incentives.

Looking to fix for longer? The lowest five-year fixed rate available to remortgage borrowers can be found direct from NatWest for another consecutive week; it charges 4.08% to cater for up to 60% LTV. This online-exclusive deal is available to refinance customers throughout Great Britain and Northern Ireland but costs a substantial £1,495 in arrangement fees. However, in the way of incentives, it includes a free valuation and free legal fees.

Alternatively, the lender’s intermediary arm, NatWest Int Sols, has two deals at the same price which can also finance up to 60% of a property. Again, both are available to remortgage borrowers in Great Britain and Northern Ireland and have arrangement fees amounting to £1,495. They each include a free valuation but, where one additionally comes with free legal fees, the other instead offers £250 cashback.

The best mortgage rates for homemovers

Principality BS’s mortgage charging 4.19% (as previously mentioned) is also available to homemovers and provides the lowest, widely available two-year fixed rate in the sector this week. However, those looking to borrow a larger sum of at least £300,000 can access an even lower rate from Nationwide BS. The high street lender has a deal priced at 4.17% which can finance up to 60% LTV. While it has a significant £1,499 reservation fee, this mortgage comes with a free valuation and the opportunity to earn £250 cashback if your prospective property has an EPC rating between 86 and 91, or £500 for a score 92 or more. Available either direct or via intermediaries, it has a lending area that covers Great Britain and Northern Ireland (but excludes the Scilly Isles).

Meanwhile, Halifax continues to offer homemovers the lowest three-year fixed rate at 4.09%. Costing £999 in product fees, those in Great Britain and Northern Ireland borrowing at least £100,000 can apply for this deal direct and use it to finance up to 60% of their new home. But, it should be noted its sole incentive of £250 cashback only applies if your property has an EPC rating of 81 or higher.

As for those looking to move home with less equity in their current property, you could instead consider any number of the first direct deals that feature on our Moneyfacts Best Buy chart. For instance, the lender can finance up to 75% LTV at 4.34% with a mortgage that costs just £490 in booking fees. Homemovers in Great Britain and Northern Ireland can access this deal directly and will also receive a free valuation as an added extra.

Meanwhile, the lowest five-year fixed rate for homemovers remains at 4.07% and can be found from both NatWest and NatWest Int Sols. Their almost identical deals can each finance up to 60% of a property, cost £1,495 in product fees and are available to borrowers in Great Britain and Northern Ireland. One of the main differences, however, is the mortgage from NatWest can be applied for directly online, while you’ll need to use a broker to access the deal from its subsidiary.

The best first-time buyer mortgages

The lowest two-year fixed rate for first-time buyers with a 10% deposit also rose marginally this week to now sit at 5.00%. This rate is charged by a deal from Yorkshire Building Society which is available to borrowers in Great Britain and Northern Ireland directly from the lender. But, while it includes a free valuation as an incentive, keep in mind it also comes with a substantial product fee of £1,495.

Therefore, those looking to save on upfront costs may want to consider an alternative from first direct. Although the lender charges a higher rate of 5.09%, fixed for two years, to finance up to 90% of your first home, its deal costs a more modest £490 in booking fees when applying direct and also includes a free valuation.

As for securing a longer initial fixed term with a 10% deposit, Furness BS and HSBC continue to charge the lowest five-year fixed rate at 4.69%. Borrowers in Great Britain can access the former’s deal, costing £999 in product fees, either direct or via intermediaries and will receive £250 cashback as well as a free valuation as incentives.

However, the deal from HSBC offers both a free valuation and a slightly more substantial £350 cashback as incentives. It also has a wider lending area that spans both Great Britain and Northern Ireland. First-time buyers interested in this mortgage can apply either direct or via intermediaries but will also need to pay £999 in product fees.

Have a smaller deposit? Newcastle BS charges first-time buyers with a 5% deposit the lowest two-year fixed rate this week, at 5.30%. This mortgage is available to borrowers throughout Great Britain, costing £999 in product fees, but doesn’t include any added extras which may be a deal-breaker for some.

Meanwhile, Marsden BS continues to offer the lowest five-year fixed rate at 95% LTV and maintains a position on our Moneyfacts Best Buy chart. Its deal charging 4.99% is available to borrowers in England and Wales, either direct or via selected intermediaries, and comes with no additional product fees.

Nevertheless, those wanting access to a greater range of incentives could consider alternative Moneyfacts Best Buy options from HSBC. The high street lender’s two- and five-year deals charge 5.54% and 5.14%, respectively, and can each finance up to 95% LTV. Not only do these ‘fee saver’ mortgages come with no additional product fees, but they also include a free valuation as well as £500 cashback as further perks. Widely available across Great Britain and Northern Ireland, they can be applied for either direct or via selected intermediaries.