The best UK residential mortgage rates this week

Last updated: 24 July 2024 at 15:10

Many of the lowest mortgage rates drop as the first sub-4% mortgage deal since April appears on the market.

Nationwide BS hit the headlines this week as it became the first lender to offer a mortgage deal below 4% since April.

But Nationwide BS isn’t the only lender to make cuts, as many other major mortgage providers have recently reduced rates across their range of fixed mortgage products.

As a result, almost all of the lowest rates for remortgage borrowers and homemovers have fallen from last week, which is a positive sign for those looking to lock in a new mortgage deal in the near future.

But, unfortunately for those looking to take their first step onto the property ladder, the lowest rates for first-time buyers haven’t seen the same reductions in rates as the other categories.

Below, we provide more information on some of the 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 choice 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.

Otherwise, for a complete overview of the mortgage market, visit our chart.

The best remortgage rates

The lowest two-year fixed rate for remortgages fell this week with NatWest’s online-exclusive deal charging 4.64%. This deal can finance up to 60% loan-to-value (LTV) and borrowers across Great Britain and Northern Ireland can apply for it via the lender directly. It comes with a sizeable booking fee of £1,495 alongside the incentives of a free valuation and free legal fees.

For a deal that can finance a larger proportion of your property, first direct offers a Moneyfacts Best Buy deal at 4.85% with a maximum LTV of 75%. It charges a £490 booking fee and comes with the extra incentives of a free valuation and free legal fees. Borrowers in Great Britain and Northern Ireland can apply for this deal via the lender directly.

MPowered Mortgages continues to offer the lowest three-year fix for remortgage borrowers at 4.45%. With a maximum LTV of 60% and a £999 arrangement fee, this deal also offers a free valuation and £256 towards legal fees as additional incentives. Borrowers in England and Wales can apply for this deal via intermediaries.

Alternatively, Vernon BS offers a three-year fix at 4.79% that can finance up to 80% of your property’s value. It charges a £499 arrangement fee and, despite offering no extra incentives, it features as a Moneyfacts Best Buy deal. This deal is only available to borrowers in England and Wales.

For a longer fix, NatWest continues to offer the lowest five-year fixed rate for remortgages. However, after the bank recently cut a selection of its fixed rates, this online-exclusive deal now charges a lower rate of 4.20%. It has a £1,495 booking fee and offers a free valuation and free legal fees as incentives. Borrowers in Great Britain and Northern Ireland can apply for this deal from NatWest directly to finance up to 60% of their property.

Borrowers in England and Wales could also consider the five-year fix from Principality BS at 4.59% which features as a Moneyfacts Best Buy. It can finance up to 80% LTV and offers a free valuation, but borrowers should note that it charges a sizeable arrangement fee of £1,395.

The best mortgage rates for homemovers

Homemovers looking for a two-year fix will find that the lowest rate has dropped to 4.46% this week after Halifax recently cut some of its rates. Borrowers in Great Britain and Northern Ireland can apply for this deal from Halifax directly to finance up to 60% of their property’s value. They will need to pay a £999 arrangement fee and, as an extra perk, those moving into an energy-efficient home can benefit from a Green Home cashback of £250 if their new property has an Energy Performance Certificate (EPC) rating of 81 or higher.

Alternatively, first direct offers a two-year fix at a slightly higher rate of 4.51%. It can also finance up to 60% LTV and is available across Great Britain and Northern Ireland, but it comes with a smaller fee of £490. It offers a free valuation as an incentive and, when considered as a whole, this deal features as a Moneyfacts Best Buy.

HSBC now offers the lowest three-year fixed deal for homemovers at 4.44% after cutting rates this week. This deal has a maximum LTV of 60%, charges a £999 booking fee and comes with a free valuation as an incentive. It’s available from HSBC directly or via selected intermediaries to borrowers across Great Britain and Northern Ireland.

A different deal from HSBC may be worth considering if you need to finance a larger proportion of your home as it has a maximum LTV of 80% and features as a Moneyfacts Best Buy. This deal charges 4.79% and a booking fee of £999 and offers a free valuation and £350 cashback as additional perks.

After hitting the headlines this week for reducing rates across its mortgage range, Nationwide BS now offers the lowest five-year fixed rate for homemovers at 4.04%. It can finance up to 60% LTV, charges a £999 reservation fee and offers a free valuation as an incentive. Furthermore, it also comes with £250 cashback if you’re moving to a home with an EPC Rating between 86 and 91, or £500 cashback for properties with an EPC Rating of 92 or above. It’s available to borrowers in Great Britain and Northern Ireland, excluding the Scilly Isles.

Note that Nationwide BS also offers a deal at 3.99% but this is only available to those who need to borrow a minimum of £300,000.

For a Moneyfacts Best Buy option, Barclays Mortgage offers a deal at 4.24% with a maximum LTV of 75%. Available to borrowers in Great Britain and Northern Ireland, it doesn’t charge any additional product fees and also offers a free valuation as an incentive.

The best first-time buyer mortgages

Clydesdale Bank continues to offer the lowest two-year fixed rate for first-time buyers with a 10% deposit. This deal, which is only available via intermediaries, charges a rate of 5.19% and a sizeable arrangement fee of £1,499. Borrowers in Great Britain can apply for this deal but should note that it doesn’t offer any extra incentives.

For a deal with a smaller product fee, first-time buyers with a 10% deposit could consider a two-year fix from HSBC at 5.28%. It charges a booking fee of £999 and comes with a free valuation and £250 cashback.

After Virgin Money’s ‘7-Day Special’ ended, the lowest five-year fix for first-time buyers with a 10% deposit rose to 4.79% this week. This deal also comes from Virgin Money and is available to first-time buyers in Great Britain and Northern Ireland. It charges a £995 arrangement fee and offers £300 cashback as an additional perk.

First-time buyers looking for a five-year fix without any product fees may be interested in another five-year fix from Virgin Money at 4.95%. As well as not charging any additional fees, this deal also offers the perk of £300 cashback.

Halifax continues to offer the lowest two-year fixed rate for first-time buyers with a 5% deposit. Charging 5.55%, this deal comes with a £999 arrangement fee and offers £250 cashback to those buying a home with an EPC Rating of 81 or higher. First-time buyers in Great Britain and Northern Ireland can apply for this deal from Halifax directly.

For a two-year fix without any product fees, Nationwide BS offers a Moneyfacts Best Buy deal at 5.79%. First-time buyers can also receive a free valuation and £500 cashback as extra perks, alongside a green cashback of £250 if their property has an EPC Rating between 86 and 91 or £500 if it has an EPC Rating of 92 or higher. This deal is available to first-time buyers in Great Britain and Northern Ireland, excluding the Scilly Isles.

Monmouthshire BS continues to offer the lowest five-year fixed rate on deals with a maximum LTV of 95% at 5.20%. However, first-time buyers should note that it charges £1,149 in arrangement fees and doesn’t offer any additional incentives. Borrowers in England and Wales, excluding the Scilly Isles, the Isle of Man and the Channel Islands, can apply for this deal from Monmouthshire BS or via intermediaries.

Alternatively, first-time buyers with a 5% deposit wanting to minimise costs could consider a five-year fix from HSBC at 5.35%. This Moneyfacts Best Buy deal doesn’t charge any product fees and offers the extra perks of a free valuation and £500 cashback.