Last updated: 14 May 2025 at 13:20
Lenders continue to make cuts to fixed rates in wake of base rate cut.
The fixed mortgage market experienced another consecutive week of cuts as lenders repriced a number of deals – likely spurred on by the Bank of England Monetary Policy Committee (MPC) voting in favour of slashing the base rate to 4.25% at the end of last week.
Average fixed rates had already begun dropping in the lead up to the announcement, with the typical price for a two-year term having plummeted to its lowest point in over two and a half years in the month to May.
Meanwhile, prospective borrowers now have 6,993 deals to choose from (as of 1 May 2025) after product choice rose in the same timeframe, marking the largest number in 17 years.
Read more: Average two-year fixed mortgage rate plummets to lowest level since 'mini-Budget'
This week, remortgage borrowers and homemovers will find the lowest two-year rate slipping further to 3.86%, while the equivalent three-year mortgages fell to 3.92% and 3.88% respectively.
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: 14/05/2025
Rate: 3.86% fixed to 31 August 2027, reverting to 6.59% discounted variable until 31 August 2030, before finally reverting to 7.09%
Initial period: 2 years
Product fee: £1,499
Maximum loan-to-value: 65%
APRC: 6.6%
Representative example: £210,000 mortgage over 25 years initially at 3.86% fixed for 27 months reverting to 6.59% variable for 36 months and 7.09% variable for term. 27 monthly payments of £1092.29, 36 monthly payments of £1403.49 and 237 monthly payments of £1458.72. Total amount payable £427,678.11 includes loan amount, interest of £215,734, valuation fees of £0 and product fees of £1499. The overall cost for comparison is 6.6% 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: 3.88% fixed until 31 August 2030, before reverting to 7.74%
Initial period: 5 years
Product fee: £999
Maximum loan-to-value: 60%
APRC: 6.2%
Representative example: £210,000 mortgage over 25 years initially at 3.88% fixed for 63 months reverting to 7.74% variable for term. 63 monthly payments of £1094.59 and 237 monthly payments of £1492.80. Total amount payable £424,131.77 includes loan amount, interest of £212,753, valuation fees of £0 and product fees of £999. The overall cost for comparison is 6.2% APRC representative.
Rate: 3.88% fixed until 31 August 2030, before reverting to 7.74%
Initial period: 5 years
Product fee: £999
Maximum loan-to-value: 60%
APRC: 6.2%
Representative example: £210,000 mortgage over 25 years initially at 3.88% fixed for 63 months reverting to 7.74% variable for term. 63 monthly payments of £1094.59 and 237 monthly payments of £1492.80. Total amount payable £424,131.77 includes loan amount, interest of £212,753, valuation fees of £0 and product fees of £999. The overall cost for comparison is 6.2% APRC representative.
Lenders continue to make cuts to their fixed remortgage products this week, as rates fall across the board.
For those after a two-year term, Principality BS now offers the lowest rate after slashing its prices. Charging 3.86%, its deal can finance up to 65% loan-to-value (LTV) and comes with a substantial £1,499 arrangement fee. Available across England and Wales, it also includes a free valuation as a bonus perk.
If you’re trying to save on upfront costs, you could consider an alternative two-year deal from the lender that charges 4.30% with no added product fees. Available across the same lending area, borrowers can also benefit from this Moneyfacts Best Buy’s higher 75% LTV. What’s more, free legal fees are offered as well as a free valuation in this case.
Having reduced its rates even further, MPowered Mortgages again charges the lowest three-year deal for remortgage borrowers on two of its mortgages. Now charging 3.92% from £999 arrangement fees, both cater for a maximum 60% LTV and can be applied for via intermediaries across England and Wales. While each deal also throws in a free valuation incentive, one option also includes £250 cashback, meanwhile the other instead offers free legal fees.
Borrowers with less equity in their home will need to consider alternative deals, such as a three-year Moneyfacts Best Buy from Furness BS. Priced at 4.36%, it offers up to 80% LTV and is available directly or via intermediaries across Great Britain. It requires a £999 booking fee and includes both a free valuation (up to £665) and £250 cashback.
Meanwhile, for remortgage borrowers in Great Britain and Northern Ireland, Halifax and Lloyds Bank now offer the lowest five-year fix in the sector after reducing their respective deals to 3.88%. Both can finance up to 60% LTV and cost £999 in arrangement fees. On top of a free valuation and free legal fees, those with an Energy Performance Certificate (EPC) rating of 81 or higher can also receive £250 cashback.
Last updated: 14/05/2025
Rate: 3.86% fixed to 31 August 2027, reverting to 6.59% discounted variable until 31 August 2030, before finally reverting to 7.09%
Initial period: 2 years
Product fee: £1,499
Maximum loan-to-value: 65%
APRC: 6.5%
Representative example: £250,000 mortgage over 25 years initially at 3.86% fixed for 27 months reverting to 6.59% variable for 36 months and 7.09% variable for term. 27 monthly payments of £1300.34, 36 monthly payments of £1670.82 and 237 monthly payments of £1736.57. Total amount payable £508,439.79 includes loan amount, interest of £256,826, valuation fees of £0 and product fees of £1499. The overall cost for comparison is 6.5% 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: 3.88% fixed until 31 July 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 3.88% fixed for 62 months reverting to 7.24% variable for term. 62 monthly payments of £1303.08 and 238 monthly payments of £1713.06. Total amount payable £490,044.24 includes loan amount, interest of £238,499, valuation fees of £0 and product fees of £1495. The overall cost for comparison is 6.0% APRC representative.
Rate: 3.88% fixed until 31 July 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 3.88% fixed for 62 months reverting to 7.24% variable for term. 62 monthly payments of £1303.08 and 238 monthly payments of £1713.06. Total amount payable £490,044.24 includes loan amount, interest of £238,499, valuation fees of £0 and product fees of £1495. The overall cost for comparison is 6.0% APRC representative.
Despite holding steady last week, the lowest two-year rate for homemovers in England and Wales has now dropped to 3.86% as Principality BS made cuts across its range. Its deal is able to finance up to 65% of your new home and costs £1,499 in arrangement fees; it also comes with a free valuation.
Alternatively, a smaller £899 arrangement fee can be found with a two-year deal from Barclays Mortgage for those with a 25% deposit. Earning a spot on our Moneyfacts Best Buy chart, this mortgage charges 3.95% and comes with a free valuation. Furthermore, borrowers can apply for this mortgage directly or through intermediaries across Great Britain and Northern Ireland.
If you need a longer three-year fix, the lowest rate fell to 3.88% this week and is again available from MPowered Mortgages. Its mortgage caters for borrowers in England and Wales and can finance up to 60% LTV. It requires a £999 arrangement fee and, as a bonus, includes a free valuation.
Homemovers with a smaller deposit could instead consider a three-year deal from first direct. Priced at 4.19%, it can service up to 75% LTV and charges a more reasonable £490 booking fee for borrowers looking to minimise upfront costs. Available directly across Great Britain and Northern Ireland, this mortgage also comes packaged with a free valuation and features as a Moneyfacts Best Buy.
NatWest, and its intermediary arm NatWest Int Sols, maintains the lowest five-year fixed rate for homemovers in Great Britain and Northern Ireland this week. From £1,495 arrangement fees, these deals both charge 3.88% and can finance a maximum 60% LTV. Borrowers locking into either of these options can also receive a free valuation.
Elsewhere, HSBC offers a five-year fix for borrowers with only a 20% deposit; it charges 4.24% from a £999 booking fee and is available across the same lending area. In terms of incentives, this Moneyfacts Best Buy also offers a free valuation as well as £350 cashback.
Last updated: 14/05/2025
Rate: 4.54% fixed until 31 August 2027, before reverting to 6.74%
Initial period: 2 years
Product fee: £999
Maximum loan-to-value: 90%
APRC: 6.5%
Representative example: £200,000 mortgage over 25 years initially at 4.54% fixed for 27 months reverting to 6.74% variable for term. 27 monthly payments of £1116.21 and 273 monthly payments of £1361.03. Total amount payable £402,842.86 includes loan amount, interest of £201,699, valuation fees of £0 and product fees of £999. The overall cost for comparison is 6.5% APRC representative.
Rate: 4.39% fixed until 31 August 2030, 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 4.39% fixed for 63 months reverting to 6.74% variable for term. 63 monthly payments of £1099.21 and 237 monthly payments of £1330.04. Total amount payable £385,613.71 includes loan amount, interest of £184,470, valuation fees of £0 and product fees of £999. The overall cost for comparison is 5.9% APRC representative.
Rate: 4.85% fixed for two years, before reverting to 8.14%
Initial period: 2 years
Product fee: £1,149
Maximum loan-to-value: 95%
APRC: 7.8%
Representative example: £200,000 mortgage over 25 years initially at 4.85% fixed for 24 months reverting to 8.14% variable for term. 24 monthly payments of £1151.77 and 276 monthly payments of £1535.75. Total amount payable £453,093.48 includes loan amount, interest of £251,509, valuation fees of £260 and product fees of £1149. The overall cost for comparison is 7.8% APRC representative.
Rate: 4.85% fixed for two years, before reverting to 7.24%
Initial period: 2 years
Product fee: £999
Maximum loan-to-value: 95%
APRC: 7.0%
Representative example: £200,000 mortgage over 25 years initially at 4.85% fixed for 24 months reverting to 7.24% variable for term. 24 monthly payments of £1151.77 and 276 monthly payments of £1425.56. Total amount payable £422,146.04 includes loan amount, interest of £221,097, valuation fees of £0 and product fees of £999. The overall cost for comparison is 7.0% APRC representative.
Rate: 4.75% fixed for five years, before reverting to 8.14%
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 8.14% variable for term. 60 monthly payments of £1140.23 and 240 monthly payments of £1491.28. Total amount payable £427,905.00 includes loan amount, interest of £226,321, valuation fees of £260 and product fees of £1149. The overall cost for comparison is 6.9% APRC representative.
HSBC again charges the lowest two- and five-year fixed rates for first-time buyers with a 10% deposit at 4.54% and 4.39% respectively. These deals are available directly or via selected intermediaries across Great Britain and Northern Ireland and cost £999 in booking fees. Alongside a free valuation which is offered on both mortgages, £250 cashback is also included with the two-year option, while those opting for the longer fix can benefit from a larger £350 lump sum.
First-time buyers looking to better these incentives could turn to a two-year fixed mortgage from Nationwide BS. It offers a free valuation and £500 cashback outright, with those moving to a home with an EPC rating between 86 and 91 able to receive an additional £250; higher EPC scores will instead be eligible for £500 cashback. Priced at 4.59%, this mortgage can finance up to 90% LTV, costing £999 in reservation fees. It can be applied for directly or via intermediaries across Great Britain and Northern Ireland (excluding the Scilly Isles).
Also available in this lending area, a five-year mortgage from Nationwide BS offers the same incentives and charges 4.49%. Requiring a comparable £999 reservation fee, borrowers can also take advantage of a 90% maximum LTV.
Meanwhile, those looking to join the property ladder with a 5% deposit will still find Monmouthshire BS charging the lowest two- and five-year fixed rates for yet another week. At 4.85% and 4.75% respectively, these deals cost £1,149 (split into a £999 arrangement fee and £150 administration fee) and are available across England and Wales (excluding the Scilly Isles, Isle of Man and the Channel Islands). While the five-year deal ranks as a Moneyfacts Best Buy, borrowers should note that there are no added incentives included with either of these options.
If this is a dealbreaker, a recent cut from Nationwide BS may be of interest; its two-year deal also charges 4.85% and comes with an array of perks. This includes a free valuation and £500 cashback, as well as an additional £250 for those with EPC ratings of 86 to 91, or £500 for ratings of 92 or more. From a £999 reservation fee, you’ll be able to apply for this mortgage if you reside in Great Britain or Northern Ireland (excluding the Scilly Isles).
Borrowers after an alternative five-year mortgage may wish to consider a deal from Barclays Mortgage which also takes a spot as a Moneyfacts Best Buy. It charges 4.84% and will largely appeal for not requiring any additional product fees when applying, though a free valuation is also included as a bonus. Likewise, this deal can finance up to 95% of your home and is available across Great Britain and Northern Ireland.
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