Last updated: 8 July 2026 at 13:10
Latest mortgage news: Is there relief for buyers as borrowing costs continue to ease?
After recent upheaval in the mortgage market, borrowing costs continue to fall. With many of this week’s lowest fixed residential mortgage rates dipping, borrowers could feel encouraged to make their home-moving plans a reality.
However, while this paints a more positive picture, affordability remains a problem for many. House prices rose month-on-month in June by 0.2% (after falling by 0.2% in May), the latest Lloyds House Price Index found.
Moving forward, Amanda Bryden, Head of Mortgages at Lloyds, explained the expectation is for the housing market “to continue moving at a measured pace”.
“Lower borrowing costs should provide some support for demand, though affordability constraints remain an important factor. The outlook for house prices will depend largely on inflation continuing to ease and household confidence gradually improving,” she added.
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: 08/07/2026
Rate: 4.42% fixed for 2 years before reverting to 6.49%
Initial period: 2 years
Product fee: £999
Maximum loan-to-value: 60%
APRC: 6.3%
Representative example: £210,000 mortgage over 25 years initially at 4.42% fixed for 24 months reverting to 6.49% variable for term. 24 monthly payments of £1157.73 and 276 monthly payments of £1399.54. Total amount payable £415,437.56 includes loan amount, interest of £204,059, valuation fees of £0 and product fees of £999. The overall cost for comparison is 6.3% APRC representative.
Rate: 4.42% fixed until 2 October 2028 before reverting to 6.50%
Initial period: 2 years
Product fee: £999
Maximum loan-to-value: 60%
APRC: 6.3%
Representative example: £210,000 mortgage over 25 years initially at 4.42% fixed for 26 months reverting to 6.50% variable for term. 26 monthly payments of £1157.73 and 274 monthly payments of £1399.30. Total amount payable £415,113.18 includes loan amount, interest of £203,509, valuation fees of £0 and product fees of £999. The overall cost for comparison is 6.3% APRC representative.
Rate: 4.54% fixed for 3 years before reverting to 6.49%
Initial period: 3 years
Product fee: £999
Maximum loan-to-value: 60%
APRC: 6.2%
Representative Example: £210,000 mortgage over 25 years initially at 4.54% fixed for 36 months reverting to 6.49% variable for term. 36 monthly payments of £1172.02 and 264 monthly payments of £1392.40. Total amount payable £411,165.32 includes loan amount, interest of £199,786, valuation fees of £0 and product fees of £999. The overall cost for comparison is 6.2% APRC representative.
Rate: 4.54% fixed until 31 August 2029 before reverting to 7.24%
Initial period: 3 years
Product fee: £995
Maximum loan-to-value: 60%
APRC: 6.7%
Representative Example: £210,000 mortgage over 25 years initially at 4.54% fixed for 37 months reverting to 7.24% variable for term. 37 monthly payments of £1172.02 and 263 monthly payments of £1481.21. Total amount payable £434,297.97 includes loan amount, interest of £222,923, valuation fees of £0 and product fees of £995. The overall cost for comparison is 6.7% APRC representative.
Rate: 4.46% fixed until 31 October 2031 before reverting to 6.80%
Initial period: 5 years
Product fee: £1,499
Maximum loan-to-value: 65%
APRC: 6.0%
Representative example: £210,000 mortgage over 25 years initially at 4.46% fixed for 63 months reverting to 6.80% variable for term. 63 monthly payments of £1162.49 and 237 monthly payments of £1404.79. Total amount payable £408,116.10 includes loan amount, interest of £196,172, valuation fees of £0 and product fees of £1499. The overall cost for comparison is 6.0% APRC representative.
The lowest two-year fixed rate for remortgage borrowers has dipped slightly to 4.42% this week following cuts. One lender charging this rate to finance up to 60% loan-to-value (LTV) is Nationwide BS. What’s more, the lender provides the lowest three-year fixed rate of 4.54% (which has stayed the same). These two- and three-year mortgages, available across Great Britain and Northern Ireland (excluding the Isles of Scilly), come with a £999 reservation fee. They also provide the perks of a free valuation and either free legal fees or £500 cashback. Borrowers can apply direct from the lender or via an intermediary.
Alternatively, Santander also charges the lowest two-year fix at 4.42% to borrowers across Great Britain and Northern Ireland (to finance a maximum LTV of 60%). While borrowers will face a £999 arrangement fee, they will have a choice between £250 cashback or free legal fees. Those in England, Wales and Northern Ireland additionally benefit from a free valuation, with borrowers in Scotland getting £95 towards their valuation fees. This mortgage can be applied for directly from Santander or via intermediaries.
Elsewhere the cheapest priced three-year rate of 4.54% can also still be found on two deals from TSB. These direct deals, accessible across Great Britain, can finance up to 60% of a property’s value and come with a £995 arrangement fee. Both mortgages provide borrowers with a free valuation, while one also comes with the incentive of free legal fees and the other an attractive £300 cashback.
Those across England and Wales looking for a five-year fix will find the lowest rate has dropped to 4.46% this week. This mortgage from Principality BS can finance up to 65% LTV and, although it comes with a hefty £1,499 arrangement fee, it provides a free valuation. Borrowers can apply direct from the lender or via an intermediary.
Borrowers across Great Britain and Northern Ireland with less equity could consider a five-year deal at 4.62% from first direct to finance up to 75% LTV. Costing a smaller £490 in booking fees, it comes with the perks of a free valuation and free legal fees. Considering its features, this mortgage qualifies as a Moneyfacts Best Buy.
Last updated: 08/07/2026
Rate: 4.24% fixed for two years before reverting to 6.49%
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 4.24% fixed for 24 months reverting to 6.49% variable for term. 24 monthly payments of £1352.95 and 276 monthly payments of £1664.13. Total amount payable £492,819.68 includes loan amount, interest of £241,771, valuation fees of £0 and product fees of £999. The overall cost for comparison is 6.3% APRC representative.
Rate: 4.34% fixed for three years before reverting to 6.49%
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 4.34% fixed for 36 months reverting to 6.49% variable for term. 36 monthly payments of £1366.97 and 264 monthly payments of £1654.33. Total amount payable £487,003.04 includes loan amount, interest of £235,954, valuation fees of £0 and product fees of £999. The overall cost for comparison is 6.1% APRC representative.
Rate: 4.29% fixed until 2 October 2031 before reverting to 6.50%
Initial period: 5 years
Product fee: £1,499
Maximum loan-to-value: 60%
APRC: 5.8%
Representative example: £250,000 mortgage over 25 years initially at 4.29% fixed for 62 months reverting to 6.50% variable for term. 62 monthly payments of £1359.95 and 238 monthly payments of £1629.82. Total amount payable £473,988.06 includes loan amount, interest of £222,214, valuation fees of £0 and product fees of £1499. The overall cost for comparison is 5.8% APRC representative.
The lowest two-year fixed rate for homemovers of 4.24% has held steady this week. Nationwide BS offers this rate and the cheapest priced three-year fix at 4.34%. Both the two- and three-year mortgages, available across Great Britain and Northern Ireland (excluding the Isles of Scilly) can finance a maximum LTV of 60% and come with a £999 reservation fee. Their incentives include a free valuation and the opportunity to earn a green home cashback of £250 for those buying a property with an Energy Performance Certificate (EPC) rating between 86 and 91, or a higher £500 cashback for a score of 92 or more. Borrowers can apply for these deals direct from Nationwide BS or via an intermediary.
Alternatively, borrowers wanting to save on upfront costs could explore a two-year fix at a higher 4.64% from the same lender which doesn’t charge any additional product fees. This Moneyfacts Best Buy deal can finance up to 85% LTV, otherwise it has the same features as the one above.
Those who need to finance a larger portion of their property value could consider a three-year fixed rate of 4.49% to finance a maximum LTV of 75%. This deal, which qualifies as a Moneyfacts Best Buy, also comes from Nationwide BS and has the same incentives and lending areas as the previous mortgages.
Meanwhile, the lowest five-year fixed rate has dipped to 4.29% this week and comes from Santander. It can finance up to 60% LTV and charges a sizeable £1,499 arrangement fee. Accessible throughout Great Britain and Northern Ireland direct from the lender or via intermediaries, borrowers will receive the perks of a free valuation (maximum £1,190) and £250 cashback.
Borrowers looking to keep upfront costs to a minimum could consider a five-year fix at 4.39% from Nationwide BS that doesn’t cost borrowers any extra in product fees. This deal can be used to finance a maximum LTV of 60% and comes with a free valuation. It also gives the opportunity to receive £250 cashback for an EPC rating of 86 to 91 or £500 for those with properties that score 92 or higher. Considering its overall value, this deal qualifies as a Moneyfacts Best Buy.
Last updated: 08/07/2026
Rate: 4.62% fixed until 1 September 2028 before reverting to 6.74%
Initial period: 2 years
Product fee: £999
Maximum loan-to-value: 90%
APRC: 6.4%
Representative example: £200,000 mortgage over 25 years initially at 4.62% fixed for 25 months reverting to 6.74% variable for 59 months and 6.49% variable for term. 25 monthly payments of £1125.33, 59 monthly payments of £1363.24 and 216 monthly payments of £1338.72. Total amount payable £398,875.93 includes loan amount, interest of £197,728, valuation fees of £0 and product fees of £999. The overall cost for comparison is 6.4% APRC representative.
Rate: 4.61% fixed until 30 September 2031 before reverting to 7.74%
Initial period: 5 years
Product fee: £1,499
Maximum loan-to-value: 90%
APRC: 6.6%
Representative example: £200,000 mortgage over 25 years initially at 4.61% fixed for 62 months reverting to 7.74% variable for term. 62 monthly payments of £1124.19 and 238 monthly payments of £1441.81. Total amount payable £414,598.56 includes loan amount, interest of £212,851, valuation fees of £0 and product fees of £1499. The overall cost for comparison is 6.6% APRC representative.
Rate: 4.61% fixed for 5 years before reverting to 6.49%
Initial period: 5 years
Product fee: £999
Maximum loan-to-value: 90%
APRC: 5.9%
Representative example: £200,000 mortgage over 25 years initially at 4.61% fixed for 60 months reverting to 6.49% variable for term. 60 monthly payments of £1124.19 and 240 monthly payments of £1311.46. Total amount payable £383,250.80 includes loan amount, interest of £182,202, valuation fees of £0 and product fees of £999. The overall cost for comparison is 5.9% APRC representative.
Rate: 4.61% fixed until 1 September 2031 before reverting to 6.74%
Initial period: 5 years
Product fee: £999
Maximum loan-to-value: 90%
APRC: 5.9%
Representative example: £200,000 mortgage over 25 years initially at 4.61% fixed for 61 months reverting to 6.74% variable for 23 months and 6.49% variable for term. 61 monthly payments of £1124.19, 23 monthly payments of £1336.73 and 216 monthly payments of £1312.69. Total amount payable £384,009.42 includes loan amount, interest of £182,861, valuation fees of £0 and product fees of £999. The overall cost for comparison is 5.9% APRC representative.
Rate: 5.08% fixed until 31 December 2028 before reverting to 6.54%
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 5.08% fixed for 29 months reverting to 6.54% variable for term. 29 monthly payments of £1178.52 and 271 monthly payments of £1341.97. Total amount payable £398,899.95 includes loan amount, interest of £197,851, valuation fees of £0 and product fees of £999. The overall cost for comparison is 6.4% APRC representative.
Rate: 5.08% fixed until 31 December 2028 before reverting to 6.62%
Initial period: 2 years
Product fee: £999
Maximum loan-to-value: 95%
APRC: 6.5%
Representative example: £200,000 mortgage over 25 years initially at 5.08% fixed for 29 months reverting to 6.62% variable for term. 29 monthly payments of £1178.52 and 271 monthly payments of £1351.23. Total amount payable £401,509.41 includes loan amount, interest of £200,360, valuation fees of £0 and product fees of £999. The overall cost for comparison is 6.5% APRC representative.
Rate: 5.01% fixed until 30 September 2031 before reverting to 7.34%
Initial period: 5 years
Product fee: £995
Maximum loan-to-value: 95%
APRC: 6.5%
Representative example: £200,000 mortgage over 25 years initially at 5.01% fixed for 62 months reverting to 7.34% variable for term. 62 monthly payments of £1170.35 and 238 monthly payments of £1408.47. Total amount payable £408,907.56 includes loan amount, interest of £207,778, valuation fees of £0 and product fees of £995. The overall cost for comparison is 6.5% APRC representative.
Virgin Money continues to provide the cheapest priced two-year deal at a reduced 4.62% for first-time buyers with a 10% deposit this week. What’s more, Virgin Money also charges the lowest five-year fixed rate of 4.61% to finance up to 90% LTV. Available across Great Britain and Northern Ireland via intermediaries, borrowers will face a £999 arrangement fee but will receive the incentive of a free valuation.
Getting onto the property ladder is expensive, so borrowers with a 10% deposit looking to minimise upfront costs could explore a two-year fix at 4.79% which doesn’t charge any additional product fees. This mortgage, also from Virgin Money, otherwise has the same features as the deal above.
Leeds BS additionally charges the lowest five-year fixed rate of 4.61% on a deal to finance a maximum LTV of 90%. This mortgage comes with a higher £1,499 competition fee but provides a free valuation (up to £999). Borrowers across England, Wales, mainland Scotland and Northern Ireland can apply for this mortgage directly from Leeds BS or via an intermediary.
Alternatively, Nationwide BS also provides two five-year deals to finance up to 90% LTV at the same rate. Both cost £999 in reservation fees and come with a free valuation and £500 cashback. As a further perk, an extra £250 cashback is on offer to those whose properties score an EPC rating between 86 and 91, or £500 for a score of 92 or above. One deal, Nationwide BS’s Helping Hand, allows prospective buyers to borrow up to six times their income, boosting affordability. Borrowers in Great Britain and Northern Ireland (excluding the Isles of Scilly) can access the Helping Hand mortgage and the standard deal directly or via an intermediary.
The lowest two-year fixed rate for first-time buyers with a smaller 5% deposit saw an increase this week to 5.08%. One provider offering this rate is Coventry BS. Borrowers will need to budget for the £999 arrangement fee but will get a free valuation and an attractive £500 cashback. This mortgage is available direct from the lender or via selected intermediaries across Great Britain.
Additionally charging 5.08% on a two-year deal to finance up to 95% LTV across Great Britain is The Co-operative Bank for Intermediaries. This deal, accessible via selected intermediaries, also costs £999 in arrangement fees and comes with a free valuation and a smaller £250 cashback.
The cheapest priced five-year fixed rate has fallen to 5.01% and continues to be found from Leek Building Society. Available across England and Wales direct from the lender or via an intermediary, it can finance a maximum LTV of 95% and comes with a £995 completion fee. Borrowers will receive a free valuation as an incentive.
Those in Great Britain and Northern Ireland wanting to keep upfront costs low could explore a five-year deal at a higher 5.23% that doesn’t come with any extra product fees. This mortgage, from HSBC, can finance up to 95% LTV and comes with the additional perks of a free valuation and £1,500 cashback. This Moneyfacts Best Buy mortgage can be applied for direct from HSBC or via selected intermediaries.
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