Last updated: 22 January 2025 at 13:40
Mortgage applications hit record high in January despite rising house prices.
The start of the year observed a surge in both buyer and seller activity, according to this week’s House Price Index from property comparison site Rightmove.
It found that the number of Mortgage In Principle applications and early-bird sellers hit record highs at the start of 2025, despite average house prices rising by 1.7% in the month to January - the most significant increase for the start of the year since 2020.
With buyers currently being afforded the highest level of choice at the start of the year since 2015, those looking to take advantage of this busy period will find longer fixed terms largely holding steady, while the lowest two-year fixed rates have risen across all sectors.
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.
Although we’ve highlighted the lowest rates across our mortgage charts, borrowers should always keep in mind that the lowest rate may not be the best, or most cost effective, deal for them. Instead, it is important to consider factors such as product fees and incentives when comparing mortgage deals, as these can have a significant impact on the cost of the mortgage. Consumers unsure of which deal is right for them should consider speaking to a mortgage broker, who will be able to provide advice on the best deal for their circumstances.
Last updated: 22/01/2025
Rate: 4.34% fixed for two years, before reverting to 6.99%
Initial period: 2 years
Product fee: £490
Maximum loan-to-value: 60%
APRC: 6.7%
Representative example: £210,000 mortgage over 25 years initially at 4.34% fixed for 24 months reverting to 6.99% variable for term. 24 monthly payments of £1148.26 and 276 monthly payments of £1460.57. Total amount payable £431,545.56 includes loan amount, interest of £220,676, valuation fees of £0 and product fees of £490. The overall cost for comparison is 6.7% APRC representative.
Rate: 4.34% fixed for two years, before reverting to 7.49%
Initial period: 2 years
Product fee: £999
Maximum loan-to-value: 60%
APRC: 7.2%
Representative example: £210,000 mortgage over 25 years initially at 4.34% fixed for 24 months reverting to 7.49% variable for term. 24 monthly payments of £1148.26 and 276 monthly payments of £1523.57. Total amount payable £449,442.56 includes loan amount, interest of £238,064, valuation fees of £0 and product fees of £999. The overall cost for comparison is 7.2% APRC representative.
Rate: 4.34% fixed until 30 April 2027, before reverting to 7.74%
Initial period: 2 years
Product fee: £1,495
Maximum loan-to-value: 60%
APRC: 7.3%
Representative example: £210,000 mortgage over 25 years initially at 4.34% fixed for 27 months reverting to 7.74% variable for term. 27 monthly payments of £1148.26 and 273 monthly payments of £1551.78. Total amount payable £456,513.96 includes loan amount, interest of £244,639, valuation fees of £0 and product fees of £1495. The overall cost for comparison is 7.3% APRC representative.
Rate: 4.34% fixed until 30 April 2027, before reverting to 7.74%
Initial period: 2 years
Product fee: £1,495
Maximum loan-to-value: 60%
APRC: 7.3%
Representative example: £210,000 mortgage over 25 years initially at 4.34% fixed for 27 months reverting to 7.74% variable for term. 27 monthly payments of £1148.26 and 273 monthly payments of £1551.78. Total amount payable £456,513.96 includes loan amount, interest of £244,639, valuation fees of £0 and product fees of £1495. The overall cost for comparison is 7.3% APRC representative.
Rate: 4.18% fixed until 31 May 2028, before reverting to 8.24%
Initial period: 3 years
Product fee: £999
Maximum loan-to-value: 60%
APRC: 7.2%
Representative example: £210,000 mortgage over 25 years initially at 4.18% fixed for 40 months reverting to 8.24% variable for term. 40 monthly payments of £1129.43 and 260 monthly payments of £1593.95. Total amount payable £460,983.20 includes loan amount, interest of £249,604, valuation fees of £0 and product fees of £999. The overall cost for comparison is 7.2% APRC representative.
Rate: 4.08% fixed until 30 April 2030, before reverting to 7.74%
Initial period: 5 years
Product fee: £1,495
Maximum loan-to-value: 60%
APRC: 6.4%
Representative example: £210,000 mortgage over 25 years initially at 4.08% fixed for 63 months reverting to 7.74% variable for term. 63 monthly payments of £1117.75 and 237 monthly payments of £1498.37. Total amount payable £427,406.94 includes loan amount, interest of £215,532, valuation fees of £0 and product fees of £1495. The overall cost for comparison is 6.4% APRC representative.
Rate: 4.08% fixed until 30 April 2030, before reverting to 7.74%
Initial period: 5 years
Product fee: £1,495
Maximum loan-to-value: 60%
APRC: 6.4%
Representative example: £210,000 mortgage over 25 years initially at 4.08% fixed for 63 months reverting to 7.74% variable for term. 63 monthly payments of £1117.75 and 237 monthly payments of £1498.37. Total amount payable £427,406.94 includes loan amount, interest of £215,532, valuation fees of £0 and product fees of £1495. The overall cost for comparison is 6.4% APRC representative.
Unfortunately for remortgage borrowers, the lowest two-year fixed rate continued to rise this week to 4.34% and is now charged by multiple lenders.
A deal from first direct charges this rate alongside a modest £490 booking fee and can finance a maximum loan-to-value (LTV) of 60%. It’s available to borrowers across Great Britain and Northern Ireland and includes a free valuation as well as free legal fees as added incentives. It also earns a spot on our Moneyfacts Best Buy chart.
Nationwide BS also charges 4.34% on one of its two-year fixed mortgages for those with 40% equity in their home. Costing £999 in reservation fees, this deal includes a free valuation and the choice between free legal fees or £500 cashback on completion. This mortgage is available across Great Britain and Northern Ireland but excludes the Scilly Isles.
Alternatively, borrowers in Great Britain and Northern Ireland could consider two-year deals from NatWest and its intermediary arm NatWest Int Sols which also charge 4.34%. These mortgages all cost £1,495 in arrangement fees and cater to up to 60% LTV. A free valuation is included across all options, with NatWest’s ‘online exclusive’ deal, and one of the two options from NatWest Int Sols also offering free legal fees; the other instead comes with £250 cashback.
NatWest and NatWest Int Sols continue to charge the lowest five-year fixed rate for remortgage borrowers this week, which again holds at 4.08%. These deals are subject to the same terms and incentives as their two-year counterparts and are also available across Great Britain and Northern Ireland.
Remortgage borrowers after a lower upfront fee could consider one of first direct’s five-year deals priced at 4.29% that features as a Moneyfacts Best Buy. On top of its £490 booking fee, borrowers in Great Britain and Northern Ireland can also finance up to 75% of their new home with this mortgage; they can also receive a free valuation and free legal fees.
Meanwhile, Halifax again charges the lowest three-year fix in the sector at 4.18%. Its deal is available directly across Great Britain and Northern Ireland for those looking to borrow a minimum of £100,000 and can finance a maximum 60% LTV. A free valuation as well as free legal fees are included, and borrowers with an Energy Performance Certificate (EPC) rating of 81 or higher can claim £250 cashback to help offset the deal’s £999 arrangement fee.
As for those with only 20% equity in their property, Principality BS offers a Moneyfacts Best Buy deal that charges no extra product fees. Priced at 4.82%, it comes with a free valuation as well as free legal fees and is available across England and Wales.
Last updated: 22/01/2025
Rate: 4.22% fixed for two years, before reverting to 7.49%
Initial period: 2 years
Product fee: £999
Maximum loan-to-value: 60%
APRC: 7.1%
Representative example: £250,000 mortgage over 25 years initially at 4.22% fixed for 24 months reverting to 7.49% variable for term. 24 monthly payments of £1350.15 and 276 monthly payments of £1812.32. Total amount payable £533,652.92 includes loan amount, interest of £282,604, valuation fees of £0 and product fees of £999. The overall cost for comparison is 7.1% APRC representative.
Rate: 4.07% fixed for three years, before reverting to 6.74%
Initial period: 3 years
Product fee: £999
Maximum loan-to-value: 60%
APRC: 6.2%
Representative example: £250,000 mortgage over 25 years initially at 4.07% fixed for 36 months reverting to 6.74% variable for term. 36 monthly payments of £1329.27 and 264 monthly payments of £1684.90. Total amount payable £493,816.32 includes loan amount, interest of £242,667, valuation fees of £0 and product fees of £999. The overall cost for comparison is 6.2% APRC representative.
Rate: 4.07% fixed until 30 April 2030, before reverting to 7.74%
Initial period: 5 years
Product fee: £1,495
Maximum loan-to-value: 60%
APRC: 6.3%
Representative example: £250,000 mortgage over 25 years initially at 4.07% fixed for 63 months reverting to 7.74% variable for term. 63 monthly payments of £1329.27 and 237 monthly payments of £1783.45. Total amount payable £507,966.66 includes loan amount, interest of £256,422, valuation fees of £0 and product fees of £1495. The overall cost for comparison is 6.3% APRC representative.
Rate: 4.07% fixed until 30 April 2030, before reverting to 7.74%
Initial period: 5 years
Product fee: £1,495
Maximum loan-to-value: 60%
APRC: 6.3%
Representative example: £250,000 mortgage over 25 years initially at 4.07% fixed for 63 months reverting to 7.74% variable for term. 63 monthly payments of £1329.27 and 237 monthly payments of £1783.45. Total amount payable £507,966.66 includes loan amount, interest of £256,422, valuation fees of £0 and product fees of £1495. The overall cost for comparison is 6.3% APRC representative.
After Principality BS withdrew selected deals last week, Nationwide BS now charges the lowest widely available two-year rate for homemovers. Its deal charges 4.22% alongside a £999 reservation fee and is available across Great Britain and Northern Ireland (excluding the Scilly Isles). It can finance up to 60% of your new property and, as a bonus perk, includes a free valuation. What’s more, this mortgage offers £250 cashback if your new home has an EPC score of 86 to 91, or £500 for a score of 92 and above.
If you need a higher LTV, or are looking to save on upfront costs, first direct charges 4.39% on a two-year fixed deal that can finance up to 75% of your new home from a £490 booking fee. This Moneyfacts Best Buy includes a free valuation as a bonus perk and is available directly across Great Britain and Northern Ireland.
MPowered Mortgages today cut a variety of its fixed rate mortgages, and as a result the lowest three-year rate for homemovers witnessed a welcome drop to 4.07%. Costing £999 in arrangement fees, the lender’s three-year deal is available via intermediaries across England and Wales and can finance up to 60% of your new home. Adding to its appeal, a free valuation is also included.
The same incentive is also included on a three-year fixed mortgage from Nationwide BS. Charging 4.32%, this Moneyfacts Best Buy may appeal to those moving to an energy-efficient home, as £250 cashback is offered for EPC ratings between 86 to 91 (or £500 for ratings above this). Even if this isn’t the case, borrowers can still benefit from a higher 75% LTV and can apply for the deal in Great Britain and Northern Ireland (excluding the Scilly Isles) with a £999 reservation fee.
The lowest five-year fixed rate for homemovers once again holds at 4.07% and is still available from NatWest and NatWest Int Sols. While the former lender offers its deal directly, the mortgage from NatWest Int Sols can only be applied for via intermediaries. Aside from this difference, both options cost £1,495 in arrangement fees, include a free valuation and can finance a maximum 60% LTV for borrowers in Great Britain and Northern Ireland.
Borrowers with a smaller deposit can instead look to a five-year fixed deal from first direct, which caters for a higher 75% LTV. Priced at 4.24%, this mortgage also charges a lower £490 booking fee and offers a free valuation as an added incentive to those in Great Britain and Northern Ireland. As a result, this product places on our Moneyfacts Best Buy chart.
Last updated: 22/01/2025
Rate: 5.04% fixed for two years, before reverting to 7.49%
Initial period: 2 years
Product fee: £999
Maximum loan-to-value: 90%
APRC: 7.3%
Representative example: £200,000 mortgage over 25 years initially at 5.04% fixed for 24 months reverting to 7.49% variable for term. 24 monthly payments of £1173.85 and 276 monthly payments of £1457.52. Total amount payable £431,496.92 includes loan amount, interest of £230,448, valuation fees of £0 and product fees of £999. The overall cost for comparison is 7.3% APRC representative.
Rate: 4.69% fixed for five years, before reverting to 8.39%
Initial period: 5 years
Product fee: £999
Maximum loan-to-value: 90%
APRC: 7.0%
Representative example: £200,000 mortgage over 25 years initially at 4.69% fixed for 60 months reverting to 8.39% variable for term. 60 monthly payments of £1133.34 and 240 monthly payments of £1517.48. Total amount payable £433,409.60 includes loan amount, interest of £232,196, valuation fees of £75 and product fees of £999. The overall cost for comparison is 7.0% APRC representative.
Rate: 5.30% fixed until 31 March 2027, before reverting to 6.94%
Initial period: 2 years
Product fee: £999
Maximum loan-to-value: 95%
APRC: 6.9%
Representative example: £200,000 mortgage over 25 years initially at 5.30% fixed for 26 months reverting to 6.94% variable for term. 26 monthly payments of £1204.40 and 274 monthly payments of £1392.41. Total amount payable £414,303.74 includes loan amount, interest of £212,835, valuation fees of £290 and product fees of £999. The overall cost for comparison is 6.9% APRC representative.
Rate: 4.99% fixed until 30 April 2030, before reverting to 8.84%
Initial period: 5 years
Product fee: £0
Maximum loan-to-value: 95%
APRC: 7.3%
Representative example: £200,000 mortgage over 25 years initially at 4.99% fixed for 63 months reverting to 8.84% variable for term. 63 monthly payments of £1168.02 and 237 monthly payments of £1571.21. Total amount payable £446,367.03 includes loan amount, interest of £245,962, valuation fees of £205 and product fees of £0. The overall cost for comparison is 7.3% APRC representative.
Selected hikes from Yorkshire Building Society see the lowest two-year fixed rate for first-time buyers with a 10% deposit rise beyond the 5% threshold; it can now be found with Nationwide BS. Priced at 5.04%, its deal costs £999 in reservation fees, and is available directly or via intermediaries across Great Britain and Northern Ireland excluding the Scilly Isles. It includes a free valuation and £500 cashback for all applicants, however, those with an EPC rating of 86 to 91 can benefit from an additional £250 or £500 with a rating of 92 and above.
Alternatively, first-time buyers can save on upfront costs with a two-year fixed deal from first direct that charges a smaller £490 booking fee. Available across Great Britain and Northern Ireland, it charges 5.09% and includes a free valuation; it can also finance up to 90% of your property.
Furness BS continues to charge the lowest five-year fixed rate for first-time buyers with a 10% deposit this week. Its deal, priced at 4.69%, costs £999 in booking fees and includes a free valuation (up to a value of £665) as well as £250 cashback. Borrowers in Great Britain can apply for this deal directly or via intermediaries.
For those after more cashback, a higher £300 is offered on a five-year fixed deal from Virgin Money charging 4.73%. Available across Great Britain and Northern Ireland, this deal doesn’t come with a free valuation, but charges a marginally lower £995 arrangement fee and can cater for up to 90% LTV.
First-time buyers with a smaller 5% deposit can again find the lowest two-year rate with Newcastle BS. Priced at 5.30%, its deal charges a £999 completion fee and can be applied for directly or via selected intermediaries across Great Britain. Note, no incentives are included for this option.
If this is a dealbreaker, you could instead consider a two-year fixed deal from Nationwide BS which charges 5.64%. On top of a free valuation and £500 cashback, an additional £250 cash boost is available if your new home has an EPC score between 86 and 91; £500 is on offer for scores above this. Adding to its appeal, this Moneyfacts Best Buy charges no additional product fees, and is open to borrowers in Great Britain and Northern Ireland (excluding the Scilly Isles).
As for a longer five-year initial term, Marsden BS continues to charge the lowest rate for first-time buyers with a 5% deposit at 4.99%. With no additional product fees, this mortgage is available across England and Wales, but doesn't include any incentives.
Also earning a spot on our Moneyfacts Best Buy chart is a five-year fixed deal from Furness BS, which is also worth considering for its lack of additional product fees. It charges 5.19% to borrowers in Great Britain after a maximum 95% LTV and includes both a free valuation (up to a value of £665), and £250 cashback.
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