Last updated: 2 July 2025 at 13:20
Encouraging signs for the mortgage market as several lenders continue to lower rates.
Net mortgage borrowing and the number of mortgage approvals increased in May, according to the latest Money and Credit report from the Bank of England.
Remortgage approvals also saw their largest monthly increase since February 2024, rising to 41,500 in May.
These are positive signs for the mortgage market and, combined with lower rates, prospective borrowers may feel optimistic about remortgaging or buying a home over the coming months.
Read more: Mortgage market sees May boost
“Over recent weeks, borrowers may be pleased to see mortgage rates have been on the downward trend, and it looks promising for more fixed rate cuts to continue due to swap rate moves (which lenders watch very closely to re-price their loans),” Rachel Springall, Finance Expert at Moneyfactscompare.co.uk, commented.
Barclays Mortgage, Halifax and Nationwide BS are some of the major lenders to make cuts across their mortgage range this week, causing some of the lowest rates to fall further.
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, see the latest mortgage rates.
While we highlight the lowest rates, the cheapest deal isn’t always the best. Fees, incentives and your personal circumstances all matter. If you’re unsure, it’s worth speaking to a mortgage broker for tailored advice.
Last updated: 02/07/2025
Rate: 3.88% fixed until 30 September 2027 before reverting to 7.24%
Initial period: 2 years
Product fee: £1,495
Maximum loan-to-value: 60%
APRC: 6.8%
Representative example: £210,000 mortgage over 25 years initially at 3.88% fixed for 26 months reverting to 7.24% variable for term. 26 monthly payments of £1094.59 and 274 monthly payments of £1484.78. Total amount payable £437,164.06 includes loan amount, interest of £225,289, valuation fees of £0 and product fees of £1495. The overall cost for comparison is 6.8% APRC representative.
Rate: 3.88% fixed until 30 September 2027 before reverting to 7.24%
Initial period: 2 years
Product fee: £1,495
Maximum loan-to-value: 60%
APRC: 6.8%
Representative example: £210,000 mortgage over 25 years initially at 3.88% fixed for 26 months reverting to 7.24% variable for term. 26 monthly payments of £1094.59 and 274 monthly payments of £1484.78. Total amount payable £437,164.06 includes loan amount, interest of £225,289, valuation fees of £0 and product fees of £1495. The overall cost for comparison is 6.8% APRC representative.
Rate: 3.92% fixed for three years before reverting to 6.24%
Initial period: 3 years
Product fee: £999
Maximum loan-to-value: 60%
APRC: 5.8%
Representative example: £210,000 mortgage over 25 years initially at 3.92% fixed for 36 months reverting to 6.24% variable for term. 36 monthly payments of £1099.20 and 264 monthly payments of £1354.51. Total amount payable £398,640.84 includes loan amount, interest of £187,162, valuation fees of £0 and product fees of £999. The overall cost for comparison is 5.8% APRC representative.
Rate: 3.93% fixed until 30 September 2030 before reverting to 6.24%
Initial period: 5 years
Product fee: £999
Maximum loan-to-value: 60%
APRC: 5.4%
Representative example: £210,000 mortgage over 25 years initially at 3.93% fixed for 62 months reverting to 6.24% variable for term. 62 monthly payments of £1100.36 and 238 monthly payments of £1332.56. Total amount payable £386,830.60 includes loan amount, interest of £175,372, valuation fees of £0 and product fees of £999. The overall cost for comparison is 5.4% APRC representative.
The lowest two-year fixed remortgage rate edged lower this week after NatWest and NatWest Int Sols cut rates. Their deals, which can finance up to 60% loan-to-value (LTV), now charge 3.88% alongside an arrangement fee of £1,495. They are all available across Great Britain and Northern Ireland, but borrowers can only apply for the NatWest deal online from the bank directly and the deals from NatWest Int Sols via an intermediary. The NatWest deal and one of the deals from NatWest Int Sols offer the incentives of a free valuation and free legal fees, while the other NatWest Int Sols deal offers £250 cashback and a free valuation.
Alternatively, borrowers in Great Britain and Northern Ireland who need to finance a larger proportion of their property could consider a Moneyfacts Best Buy from Yorkshire Building Society at 4.05%. This two-year fix can finance up to 75% LTV, charges a £995 product fee and offers the perks of a free valuation and free legal fees. Borrowers can apply for this deal from the lender directly.
MPowered Mortgages continues to offer the lowest three-year fixed rate for remortgage borrowers at 3.92% on two of its deals. With a maximum LTV of 60%, these deals charge a £999 arrangement fee and are available across England and Wales via intermediaries. As additional perks, one deal offers a free valuation and £250 cashback while its “Legal Fee Saver” comes with a free valuation and £256 towards legal costs.
Borrowers in Great Britain and Northern Ireland with a smaller amount of equity in their homes could consider a three-year fix from Halifax at 4.39% that can finance up to 80% LTV. This deal comes with a £999 arrangement fee, as well as a range of incentives including 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. As a result, it features on our Moneyfacts Best Buy chart.
Remortgage borrowers looking for a longer fix will be pleased to see the lowest five-year fixed rate drop to 3.93% this week. This deal is now offered by Barclays Mortgage after the lender lowered selected rates, and borrowers in Great Britain and Northern Ireland are eligible to apply for it directly or via intermediaries. Borrowers can use this deal to finance up to 60% of their property’s value and, even though they will need to pay a £999 arrangement fee, they can receive the extra perks of a free valuation and a choice of free legal fees or £350 cashback.
For a five-year fixed remortgage deal without any product fees, Principality BS offers a Moneyfacts Best Buy deal at 4.38%. It can finance up to 80% LTV and offers the extra benefits of a free valuation and free legal fees. Note that only borrowers in England and Wales are eligible to apply.
Last updated: 02/07/2025
Rate: 3.84% fixed until 30 November 2027 before reverting to 7.74%
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 3.84% fixed for 28 months reverting to 7.74% variable for term. 28 monthly payments of £1297.61 and 272 monthly payments of £1838.52. Total amount payable £537,559.52 includes loan amount, interest of £286,411, valuation fees of £100 and product fees of £999. The overall cost for comparison is 7.1% APRC representative.
Rate: 3.84% fixed until 30 November 2027 before reverting to 7.74%
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 3.84% fixed for 28 months reverting to 7.74% variable for term. 28 monthly payments of £1297.61 and 272 monthly payments of £1838.52. Total amount payable £537,459.52 includes loan amount, interest of £286,411, valuation fees of £0 and product fees of £999. The overall cost for comparison is 7.1% APRC representative.
Rate: 3.88% fixed for three years before reverting to 6.24%
Initial period: 3 years
Product fee: £999
Maximum loan-to-value: 60%
APRC: 5.8%
Representative example: £250,000 mortgage over 25 years initially at 3.88% fixed for 36 months reverting to 6.24% variable for term. 36 monthly payments of £1303.08 and 264 monthly payments of £1611.83. Total amount payable £473,583.00 includes loan amount, interest of £222,434, valuation fees of £0 and product fees of £999. The overall cost for comparison is 5.8% APRC representative.
Rate: 3.96% fixed until 30 September 2030 before reverting to 7.24%
Initial period: 5 years
Product fee: £1,495
Maximum loan-to-value: 60%
APRC: 6.0%
Representative example: £250,000 mortgage over 25 years initially at 3.96% fixed for 62 months reverting to 7.24% variable for term. 62 monthly payments of £1314.08 and 238 monthly payments of £1715.59. Total amount payable £491,328.38 includes loan amount, interest of £239,783, valuation fees of £0 and product fees of £1495. The overall cost for comparison is 6.0% APRC representative.
Rate: 3.96% fixed until 30 September 2030 before reverting to 7.24%
Initial period: 5 years
Product fee: £1,495
Maximum loan-to-value: 60%
APRC: 6.0%
Representative example: £250,000 mortgage over 25 years initially at 3.96% fixed for 62 months reverting to 7.24% variable for term. 62 monthly payments of £1314.08 and 238 monthly payments of £1715.59. Total amount payable £491,328.38 includes loan amount, interest of £239,783, valuation fees of £0 and product fees of £1495. The overall cost for comparison is 6.0% APRC representative.
Halifax and Lloyds Bank recently reduced a selection of their fixed rates and, as a result, the lowest two-year fixed rate available to homemovers in Great Britain and Northern Ireland has fallen this week. Their deals now charge 3.84% along with an arrangement fee of £999. They can finance up to 60% LTV and may be particularly appealing to those moving into an energy-efficient home as they offer a £250 Green Home cashback on properties with an EPC rating of 81 or higher. Lloyds Bank also offers a free valuation. Borrowers can apply for both deals from the banks directly.
If borrowers need a mortgage to cover a larger proportion of their new home, they could consider a two-year fix from first direct that can finance up to 75% LTV. This deal charges a rate of 4.04% and a £490 product fee and also offers a free valuation. Because of its overall value, it features on our Moneyfacts Best Buy charts. Borrowers in Great Britain and Northern Ireland can apply for this deal from the lender directly.
Meanwhile, the lowest three-year fixed rate for those moving home remains the same at 3.88%. Offered by MPowered Mortgages, this deal charges a £999 arrangement fee and comes with the perk of a free valuation. Borrowers in England and Wales are eligible to apply for this deal via an intermediary to finance up to 60% of their new property.
Alternatively, those moving to an energy-efficient home may be interested in a Moneyfacts Best Buy deal from Nationwide BS at 3.93%. This three-year fix, which can finance up to 60% LTV, offers £250 cashback if your property has an EPC rating between 86 and 91, and a higher £500 cashback if it scores 92 or higher. It also comes with the perk of a free valuation and charges £999 in product fees. Borrowers in Great Britain and Northern Ireland (excluding the Scilly Isles) can apply for this deal directly or via intermediaries.
NatWest and its intermediary arm, NatWest Int Sols, continue to offer the lowest five-year fixed rate for homemovers but, after cutting rates, these deals now charge a lower 3.96%. They also charge a hefty arrangement fee of £1,495 but, as an additional incentive, they come with a free valuation. These deals can finance a maximum 60% LTV and are available across Great Britain and Northern Ireland, but borrowers should note they can only apply for the NatWest deal online via the bank directly and the NatWest Int Sols deal via intermediaries.
Homemovers in search of a five-year fix that can finance up to 80% LTV could consider a deal from HSBC that charges 4.24%. Featuring as a Moneyfacts Best Buy, this deal charges a £999 product fee and comes with the extra benefits of a free valuation and £350 cashback. It is available in Great Britain and Northern Ireland from HSBC directly or via selected intermediaries.
Last updated: 02/07/2025
Rate: 4.39% fixed until 30 September 2027 before reverting to 6.24%
Initial period: 2 years
Product fee: £899
Maximum loan-to-value: 90%
APRC: 6.1%
Representative example: £200,000 mortgage over 25 years initially at 4.39% fixed for 26 months reverting to 6.24% variable for term. 26 monthly payments of £1099.21 and 274 monthly payments of £1302.44. Total amount payable £386,477.02 includes loan amount, interest of £185,448, valuation fees of £0 and product fees of £899. The overall cost for comparison is 6.1% APRC representative.
Rate: 4.38% fixed until 30 September 2030 before reverting to 6.24%
Initial period: 5 years
Product fee: £899
Maximum loan-to-value: 90%
APRC: 5.6%
Representative example: £200,000 mortgage over 25 years initially at 4.38% fixed for 62 months reverting to 6.24% variable for term. 62 monthly payments of £1098.09 and 238 monthly payments of £1279.43. Total amount payable £373,614.92 includes loan amount, interest of £172,586, valuation fees of £0 and product fees of £899. The overall cost for comparison is 5.6% APRC representative.
Rate: 4.73% fixed until 31 October 2027 before reverting to 7.12%
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 4.73% fixed for 27 months reverting to 7.12% variable for term. 27 monthly payments of £1137.94 and 273 monthly payments of £1407.66. Total amount payable £416,164.56 includes loan amount, interest of £215,016, valuation fees of £0 and product fees of £999. The overall cost for comparison is 6.9% APRC representative.
Rate: 4.75% fixed for five years before reverting to 7.99%
Initial period: 5 years
Product fee: £1,149
Maximum loan-to-value: 95%
APRC: 6.9%
Representative example: £200,000 mortgage over 25 years initially at 4.75% fixed for 60 months reverting to 7.99% variable for term. 60 monthly payments of £1140.23 and 240 monthly payments of £1474.77. Total amount payable £423,942.60 includes loan amount, interest of £222,359, valuation fees of £260 and product fees of £1149. The overall cost for comparison is 6.9% APRC representative.
Barclays Mortgage continues to offer the lowest two- and five-year fixed rates for first-time buyers with a 10% deposit but, while the two-year deal still charges 4.39%, the five-year deal now charges a lower 4.38%. Both deals charge an arrangement fee of £899 and offer the additional perk of a free valuation. Borrowers in Great Britain and Northern Ireland can apply for these deals from the lender directly or via an intermediary.
Alternatively, borrowers may be interested in a different five-year fix from Barclays Mortgage at 4.50% that doesn’t charge any product fees at all. It also offers a free valuation and is available to borrowers in Great Britain and Northern Ireland.
Or, for a two-year fixed deal, first-time buyers could consider a deal from first direct at 4.58% that charges a relatively small product fee of £490. This two-year fix can also finance up to 90% LTV. Borrowers in Great Britain and Northern Ireland can apply for this deal from the lender directly and can receive the perk of a free valuation.
First-time buyers with a smaller 5% deposit will find the lowest fixed rates remain the same this week. The Co-operative Bank for Intermediaries continues to offer the lowest two-year fixed rate of 4.73% to borrowers in Great Britain. It charges a £999 arrangement fee and comes with the extra perks of a free valuation and £250 cashback, but borrowers should note it’s only available via selected intermediaries.
Alternatively, first-time buyers may be interested in a two-year fix from Nationwide BS at 5.09% that doesn’t charge any product fees. It can finance up to 95% LTV and is available in Great Britain and Northern Ireland (excluding the Scilly Isles). It offers the benefits of a free valuation, £500 cashback and an additional £250 Green cashback for properties with an EPC rating between 86 and 91 or £500 cashback if it’s 92 or higher. Because of its overall value, this deal features as a Moneyfacts Best Buy.
For a longer fix, Monmouthshire BS once again offers the lowest five-year fixed rate on deals with a maximum LTV of 95%. Charging a rate of 4.75% alongside product fees totalling £1,149, this deal is available from the lender directly or via intermediaries. However, it’s worth noting that only borrowers in England and Wales (not the Scilly Isles, Isle of Man or the Channel Islands) are eligible to apply. Furthermore, unlike many other deals, no additional perks are included.
First-time buyers who would prefer a deal with more incentives could consider a Moneyfacts Best Buy from Santander. This deal charges a slightly higher rate of 4.85% but doesn’t charge any additional product fees. It also offers the perks of a free valuation (up to £1,190) and £250 cashback. Borrowers in Great Britain and Northern Ireland are eligible for this deal.
Mortgage brokers remove a lot of the paperwork and hassle of getting a mortgage, as well as helping you access exclusive products and rates that aren’t available to the public. Mortgage brokers are regulated by the Financial Conduct Authority (FCA) and are required to pass specific qualifications before they can give you advice.
MAB is the preferred mortgage broker of Moneyfactscompare.co.uk
Get friendly, expert advice free of charge as a visitor of Moneyfactscompare.co.uk
Mortgage Advice Bureau have 1,600 UK advisers with 200 awards between them.
Speak to an award-winning mortgage broker today.
Call 0808 149 9177 or request a callback
Mortgage Advice Bureau offers fee free mortgage advice for MoneyfactsCompare visitors that call on 0808 149 9177. If you contact Mortgage Advice Bureau outside of these channels you may incur a fee of up to 1%. Lines are open Monday to Friday 8am to 8pm and Saturday 9am to 1pm excluding bank holidays. Calls may be recorded.
Your home may be repossessed if you do not keep up repayments on your mortgage.
A bridging loan can be used to purchase a property at auction, continue a purchase if your sale falls through, or for funding redevelopment projects. A lender could support your plans with between £50,000 and £25 million, depending on your circumstances.
All of our newsletters are available free by email to all Moneyfactscompare.co.uk users.
Send me Weekend Moneyfactscompare, Savers Friend, and Companies Friend.
Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time. Links to third parties on this page are paid for by the third party. You can find out more about the individual products by visiting their site. Moneyfactscompare.co.uk will receive a small payment if you use their services after you click through to their site. All information is subject to change without notice. Please check all terms before making any decisions. This information is intended solely to provide guidance and is not financial advice. Moneyfacts will not be liable for any loss arising from your use or reliance on this information. If you are in any doubt, Moneyfacts recommends you obtain independent financial advice.
Moneyfactscompare.co.uk will never contact you by phone to sell you any financial product. Any calls like this are not from Moneyfacts. Emails sent by Moneyfactscompare.co.uk will always be from news@moneyfacts-news.co.uk. Be ScamSmart.
Moneyfactscompare.co.uk will never contact you by phone to sell you any financial product. Any calls like this are not from Moneyfacts. Emails sent by Moneyfactscompare.co.uk will always be from news@moneyfacts-news.co.uk. Be ScamSmart.
Moneyfactscompare.co.uk will never contact you by phone to sell you any financial product. Any calls like this are not from Moneyfacts. Emails sent by Moneyfactscompare.co.uk will always be from news@moneyfacts-news.co.uk. Be ScamSmart.
Moneyfactscompare.co.uk will never contact you by phone to sell you any financial product. Any calls like this are not from Moneyfacts. Emails sent by Moneyfactscompare.co.uk will always be from news@moneyfacts-news.co.uk. Be ScamSmart.
Moneyfactscompare.co.uk will never contact you by phone to sell you any financial product. Any calls like this are not from Moneyfacts. Emails sent by Moneyfactscompare.co.uk will always be from news@moneyfacts-news.co.uk. Be ScamSmart.
Moneyfactscompare.co.uk will never contact you by phone to sell you any financial product. Any calls like this are not from Moneyfacts. Emails sent by Moneyfactscompare.co.uk will always be from news@moneyfacts-news.co.uk. Be ScamSmart.
