Last updated: 7 October 2026 at 14:30
Latest mortgage news: Higher mortgage rates might be stifling property demand, but could a subdued housing market be an opportunity for some buyers?
Higher mortgage rates and wider economic uncertainty are continuing to take a toll on the UK housing market, with property prices stagnating in September, according to the latest House Price Index (HPI) from Lloyds Bank. As well as recording no monthly change, it found annual house price growth also flatlined at 0.0% and that a typical property now costs £298,441.
“The market is facing gathering dark clouds on several fronts, with affordability, confidence and borrowing costs all coming under pressures, which is in turn causing house prices to stall,” Ian Futcher, financial planner at Quilter, explained. Earlier this week, the average five-year fixed mortgage rate hit 6% for the first time in three years, our own analysis revealed.
“The forthcoming Budget is adding another layer of uncertainty, with some buyers choosing to sit on their hands until there is greater clarity on the Government’s tax and housing policy agenda,” Futcher continued. “When purchasing a home is one of the biggest financial decisions a person will ever make, uncertainty alone can be enough to delay a move by weeks or even months,” he added.
Nevertheless, Rachel Springall, Finance Expert at Moneyfactscompare.co.uk, said that a subdued housing market means those who can afford a mortgage should have “bargaining power on their side”, but urged people to carefully cost their decision and consider seeking advice.
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: 07/10/2026
Rate: 5.06% fixed until 31 January 2029 before reverting to 5.99%
Initial period: 2 years
Product fee: £1,495
Maximum loan-to-value: 60%
APRC: 6.5%
Representative example: £210,000 mortgage over 25 years initially at 5.06% fixed for 27 months reverting to 5.99% variable for 36 months and 6.74% variable for term. 27 monthly payments of £1234.99, 36 monthly payments of £1343.53 and 237 monthly payments of £1425.16. Total amount payable £421,439.73 includes loan amount, interest of £209,475, valuation fees of £0 and product fees of £1495. The overall cost for comparison is 6.5% APRC representative.
Rate: 5.07% fixed until 2 January 2030 before reverting to 6.50%
Initial period: 3 years
Product fee: £999
Maximum loan-to-value: 60%
APRC: 6.3%
Representative example: £210,000 mortgage over 25 years initially at 5.07% fixed for 38 months reverting to 6.50% variable for term. 38 monthly payments of £1236.22 and 262 monthly payments of £1399.66. Total amount payable £415,291.28 includes loan amount, interest of £203,687, valuation fees of £0 and product fees of £999. The overall cost for comparison is 6.3% APRC representative.
Rate: 5.08% fixed until 31 January 2032 before reverting to 6.74%
Initial period: 5 years
Product fee: £1,495
Maximum loan-to-value: 60%
APRC: 6.3%
Representative example: £210,000 mortgage over 25 years initially at 5.08% fixed for 63 months reverting to 6.74% variable for term. 63 monthly payments of £1237.45 and 237 monthly payments of £1413.28. Total amount payable £414,781.71 includes loan amount, interest of £202,907, valuation fees of £0 and product fees of £1495. The overall cost for comparison is 6.3% APRC representative.
Rate: 5.08% fixed until 31 January 2032 before reverting to 6.74%
Initial period: 5 years
Product fee: £1,495
Maximum loan-to-value: 60%
APRC: 6.3%
Representative example: £210,000 mortgage over 25 years initially at 5.08% fixed for 63 months reverting to 6.74% variable for term. 63 monthly payments of £1237.45 and 237 monthly payments of £1413.28. Total amount payable £414,781.71 includes loan amount, interest of £202,907, valuation fees of £0 and product fees of £1495. The overall cost for comparison is 6.3% APRC representative.
The remortgage market showed a small sign of stability this week as the lowest two-year fixed rate held steady at 5.06%. A deal from Yorkshire Building Society continues to charge this rate to finance up to 60% loan-to-value (LTV) and can be accessed by borrowers in Great Britain and Northern Ireland directly from the lender. But, while it includes a free valuation and free legal fees as perks, bear in mind this mortgage comes with a substantial £1,495 completion fee.
Those looking for cheaper upfront costs could instead consider a two-year fix from first direct that charges 5.14% to finance up to 60% of a property and has a more modest £490 booking fee. This deal is also available throughout Great Britain and Northern Ireland directly from the lender and similarly offers a free valuation and free legal fees as incentives. Based on its overall true cost, this sees it earn a spot on our Moneyfacts Best Buy chart.
Unfortunately, however, the lowest three- and five-year fixed remortgage rates have continued to climb. Santander currently offers the cheapest three-year fixed deal, at 5.07%. Available direct or via intermediaries to applicants in Great Britain and Northern Ireland, this mortgage can finance up to 60% LTV and costs £999 in arrangement fees. As well as the choice between £250 cashback on completion or free legal fees, it provides borrowers in England, Wales and Northern Ireland with a free valuation (while those in Scotland get £95 towards the cost of a valuation).
Meanwhile, an ‘online exclusive’ deal from NatWest and two options via the lender’s intermediary arm, NatWest Int Sols, charge the lowest five-year fixed rate of 5.08%. These products are all available in Great Britain and Northern Ireland, can finance up to 60% of a property, cost £1,495 in arrangement fees and include a free valuation. The direct deal from NatWest and one of the mortgages from NatWest Int Sols additionally comes with free legal fees (whereas the other deal from NatWest Int Sols offers £350 cashback).
That being said, homeowners with less equity will need to explore other options, such as a three-year fix from first direct that can finance up to 85% LTV at 5.44% and occupies a spot on our Moneyfacts Best Buy chart. Borrowers in Great Britain and Northern Ireland can apply for this deal directly with the lender. Perhaps adding to its appeal, this mortgage costs just £490 in booking fees and includes both a free valuation and free legal fees as perks.
Alternatively, a five-year fix from Nationwide BS caters for up to 75% LTV at 5.23% and similarly features on our Moneyfacts Best Buy chart. Costing £999 in reservation fees, borrowers in Great Britain and Northern Ireland (excluding the Scilly Isles) can apply for this deal either direct with the lender or via selected intermediaries and will receive a free valuation, as well as the choice between £500 cashback or free legal fees, as incentives.
Last updated: 07/10/2026
Rate: 4.92% fixed until 2 January 2029 before reverting to 6.50%
Initial period: 2 years
Product fee: £1,499
Maximum loan-to-value: 60%
APRC: 6.4%
Representative example: £250,000 mortgage over 25 years initially at 4.92% fixed for 26 months reverting to 6.50% variable for term. 26 monthly payments of £1449.85 and 274 monthly payments of £1671.63. Total amount payable £497,496.72 includes loan amount, interest of £245,723, valuation fees of £0 and product fees of £1499. The overall cost for comparison is 6.4% APRC representative.
Rate: 4.90% fixed until 2 January 2030 before reverting to 6.50%
Initial period: 3 years
Product fee: £999
Maximum loan-to-value: 60%
APRC: 6.3%
Representative example: £250,000 mortgage over 25 years initially at 4.90% fixed for 38 months reverting to 6.50% variable for term. 38 monthly payments of £1446.95 and 262 monthly payments of £1663.45. Total amount payable £492,082.00 includes loan amount, interest of £240,808, valuation fees of £0 and product fees of £999. The overall cost for comparison is 6.3% APRC representative.
Rate: 4.93% fixed until 2 January 2032 before reverting to 6.50%
Initial period: 5 years
Product fee: £1,499
Maximum loan-to-value: 60%
APRC: 6.0%
Representative example: £250,000 mortgage over 25 years initially at 4.93% fixed for 62 months reverting to 6.50% variable for term. 62 monthly payments of £1451.30 and 238 monthly payments of £1647.86. Total amount payable £483,945.28 includes loan amount, interest of £232,171, valuation fees of £0 and product fees of £1499. The overall cost for comparison is 6.0% APRC representative.
Bucking the recent trend, the lowest two- and three-year fixed mortgage rates for homemovers have dropped marginally to 4.92% and 4.90%, respectively, this week. However, the cheapest rate charged by a five-year fix continued to rise and now stands at 4.93%. Borrowers in Great Britain and Northern Ireland looking to finance up to 60% of a new home can access these rates directly from Santander or via intermediaries. While the two- and five-year deals cost £1,499 in arrangement fees, and the three-year fix £999, this is partially offset by the £250 cashback and free valuation (up to a maximum of £1,190) included as perks. As a result, the three-year fix takes a place on our Moneyfacts Best Buy chart based on its overall true cost.
However, borrowers with less equity could explore other options from Santander that similarly appear on our Moneyfacts Best Buy chart this week. For example, the lender offers two-, three- and five-year fixed deals that cater for up to 75% LTV at 5.09%, 5.04% and 5.11%, respectively. These mortgages can similarly be accessed by borrowers in Great Britain and Northern Ireland directly from lender or via an intermediary and come with a £999 arrangement fee. They each also include a free valuation (up to a maximum of £1,190) and £250 cashback.
Last updated: 07/10/2026
Rate: 5.35% fixed until 31 December 2028 before reverting to 6.24%
Initial period: 2 years
Product fee: £1,499
Maximum loan-to-value: 90%
APRC: 6.3%
Representative example: £200,000 mortgage over 25 years initially at 5.35% fixed for 26 months reverting to 6.24% variable for term. 26 monthly payments of £1210.32 and 274 monthly payments of £1310.95. Total amount payable £392,417.62 includes loan amount, interest of £190,669, valuation fees of £0 and product fees of £1499. The overall cost for comparison is 6.3% APRC representative.
Rate: 5.29% fixed for five years before reverting to 6.24%
Initial period: 5 years
Product fee: £490
Maximum loan-to-value: 90%
APRC: 6.0%
Representative example: £200,000 mortgage over 25 years initially at 5.29% fixed for 60 months reverting to 6.24% variable for term. 60 monthly payments of £1203.22 and 240 monthly payments of £1299.80. Total amount payable £384,685.20 includes loan amount, interest of £184,145, valuation fees of £0 and product fees of £490. The overall cost for comparison is 6.0% APRC representative.
Rate: 5.50% fixed until 31 January 2029 before reverting to 7.74%
Initial period: 2 years
Product fee: £1,499
Maximum loan-to-value: 95%
APRC: 7.6%
Representative example: £200,000 mortgage over 25 years initially at 5.50% fixed for 27 months reverting to 7.74% variable for term. 27 monthly payments of £1228.17 and 273 monthly payments of £1489.97. Total amount payable £441,670.40 includes loan amount, interest of £239,922, valuation fees of £0 and product fees of £1499. The overall cost for comparison is 7.6% APRC representative.
Rate: 5.54% fixed until 31 January 2032 before reverting to 7.74%
Initial period: 5 years
Product fee: £999
Maximum loan-to-value: 95%
APRC: 7.0%
Representative example: £200,000 mortgage over 25 years initially at 5.54% fixed for 63 months reverting to 7.74% variable for term. 63 monthly payments of £1232.96 and 237 monthly payments of £1463.18. Total amount payable £425,698.14 includes loan amount, interest of £224,450, valuation fees of £0 and product fees of £999. The overall cost for comparison is 7.0% APRC representative.
Many of the lowest fixed rates for first-time buyers have also remained on an upwards trajectory this week. Those with a 10% deposit, for instance, will find a deal from West Brom BS now charges the cheapest two-year fixed rate of 5.35%. This mortgage includes a free valuation (up to a maximum of £740) but is only available to borrowers in England and Wales (who can apply directly with the lender or via selected intermediaries).
For an option that’s more widely accessible throughout Great Britain and Northern Ireland (via an intermediary), borrowers with a 10% deposit could consider a two-year fix from Virgin Money that charges the next lowest rate of 5.36%. Not only does it similarly come with a free valuation, but this deal also has a slightly smaller £999 arrangement fee.
Meanwhile, first-time buyers in Great Britain and Northern Ireland wanting a five-year fix will find first direct charges the lowest rate to finance up to 90% LTV. Borrowers can apply for its deal priced at 5.29% directly from the lender and will face a modest £490 booking fee. It also includes a free valuation as an incentive.
But, seeing as getting on the property ladder can be expensive, some prospective borrowers might prioritise getting their hands on a wider range of cost-saving perks. For example, a couple of five-year fixes from Nationwide BS that charge 5.44% to finance up to 90% LTV (including one of the lender’s ‘Helping Hand' deals) don’t have any additional product fees. What’s more, they come with a free valuation and £500 cashback (as well as a further £250 cashback if your home has an Energy Performance Certificate rating between 86 and 91, or £500 for a score of 92 or more). Available across Great Britain and Northern Ireland (excluding the Scilly Isles), both deals can be applied for directly with the lender or via an intermediary.
Elsewhere in the first-time buyer market, those with a 5% deposit can still access the lowest two-year fixed rate from Leeds BS, which continues to stand at 5.50% this week. The lender also now charges the lowest five-year fixed rate to finance up 95% LTV, which jumped to 5.54%. Both deals are open to borrowers in England, Wales, mainland Scotland and Northern Ireland (who can apply either direct or via intermediaries). They cost £1,499 and £999 in completion fees, respectively, and each offer a free valuation (up to a maximum of £999). Notably, the five-year fix currently features on our Moneyfacts Best Buy chart.
First-time buyers wanting to minimise upfront costs, however, could explore a two-year fix from Skipton BS that charges a higher rate of 5.72% to finance up to 95% LTV but doesn’t have any additional product fees. Available to borrowers throughout Great Britain either directly from the lender or via intermediaries, it also includes a free valuation and earns a spot on our Moneyfacts Best Buy chart.
Alternatively, those who’d prefer a five-year fix that caters for up to 95% LTV and doesn’t charge any additional product fees could consider another Moneyfacts Best Buy option from Leeds BS, priced at 5.62%. Like those mentioned previously, this deal can be accessed by borrowers in England, Wales, mainland Scotland and Northern Ireland, either direct from Leeds BS or via intermediaries, who will then receive a free valuation (up to a maximum of £999) as an extra perk.
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