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Compare mortgage rates

Many people will need the help of a mortgage for a property purchase, and there are hundreds of deals available for those remortgaging, buying a home or buying a property to let out.

Mortgage rates can change quickly, so it’s a good idea to compare deals and speak to a broker to help you find the best mortgage for you. Moneyfacts has been providing comparison charts to the public and financial sectors for over 35 years, and you can see the list of the best mortgage rates currently available on our charts.

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Best Remortgage Rates

Product Type
Rate
APRC
Max LTV
2 Year Fixed
4.20%
6.7%
60%
3 Year Fixed
4.18%
7.2%
60%
5 Year Fixed
4.04%
6.2%
60%
10 Year Fixed
4.62%
5.7%
60%
Discounted Variable
4.29%
7.8%
60%
Variable
4.29%
7.8%
60%
All Remortgages
4.04%
6.2%
60%
moneyfacts first time buyer house icon

Best First-Time Buyer Rates

Product Type
Rate
APRC
Max LTV
2 Year Fixed
4.73%
6.9%
90%
3 Year Fixed
4.93%
7.4%
90%
5 Year Fixed
4.57%
6.2%
90%
Guarantor mortgages
4.89%
7.4%
100%
Discount Variable
5.09%
7.6%
90%
Variable
5.09%
7.6%
90%
All First-Time Buyer
4.57%
6.2%
90%
moving home icon

Best Moving Home Rates

Product Type
Rate
APRC
Max LTV
2 Year Fixed
3.97%
6.7%
60%
3 Year Fixed
4.09%
7.2%
60%
5 Year Fixed
3.97%
6.0%
60%
10 Year Fixed
4.44%
5.4%
60%
Discounted Variable
4.24%
7.7%
60%
Variable
4.24%
7.7%
60%
All Moving Home
3.97%
6.7%
60%
moneyfacts buy to let white house icon

Best Buy-To-Let Rates

Product Type
Rate
APRC
Max LTV
2 Year Fixed
2.97%
9.2%
65%
3 Year Fixed
4.44%
7.4%
60%
5 Year Fixed
3.89%
7.7%
65%
10 Year Fixed
60% LTV
2.97%
9.2%
65%
75% LTV
3.14%
9.6%
75%
80% LTV
3.58%
7.7%
80%
Discounted Variable
3.50%
8.0%
70%
Variable
3.50%
8.0%
70%
All Buy-To-Let
2.97%
9.2%
65%
Disclaimer

Credit will be secured by a mortgage on your property. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE. Written quotations are available from individual lenders. Loans are subject to status and valuation and are not available to persons under the age of 18. All rates are subject to change without notice. Please check all rates and terms with your lender or financial adviser before undertaking any borrowing

Mortgage rates explained

Mortgages are a type of secured loan that enable people to purchase a property. Because most people don’t have the cash to buy a property outright, a mortgage is likely to be necessary for the majority of property purchases.

Borrowers typically put down a deposit for their property purchase and borrow the remaining amount with a mortgage. The percentage of the property you need to finance is known as the loan-to-value (LTV). For example, if you have a £70,000 deposit or own £70,000 in your home outright (known as equity), and the property is worth £350,000, your LTV is 80%.

Most mortgages have long repayment terms of 25 years or longer and come with monthly payments.

Your monthly payments will be smaller if you choose a longer repayment term, but you will pay more in interest overall. As a result, it’s a good idea to choose as short a term as possible.

Within the total repayment term, it’s possible to lock in mortgage rates for a shorter period, such as two, three or five years.

How do mortgage rates work?

Mortgage interest rates determine how much it will cost you to borrow over a certain period. Lenders charge interest on mortgages as a percentage of the total amount you borrow.

The lower the interest rate, the cheaper your mortgage.

Mortgage rates can be fixed, which means the interest rate and your payments won’t change for the specified term, or variable, which means they could change.

When you compare mortgage rates, you’ll notice that products will display an initial interest rate, the rate it reverts to once the introductory period ends (usually the Standard Variable Rate, or SVR) and an annual percentage rate of charge (APRC).

The initial interest rate is the rate you pay for a specified period, such as two, three or five years. It may be fixed or variable.

Once this initial period ends, the mortgage will automatically revert to a different (usually higher) rate. This is usually the lender’s Standard Variable Rate (SVR).

The APRC tells you the annual cost of a mortgage, including the initial interest rate, the SVR and any fees charged. It is a useful guide as it allows you to compare the total cost of a mortgage on a like-for-like basis with other products on the market.

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Bear in mind the APRC is based on the full mortgage term, assumes the interest rates won’t change and that you don’t remortgage to a new deal once your initial rate expires. As a result, the total cost of your mortgage is likely to end up being different to the APRC, so most borrowers are likely to be more focused on the initial interest rate.

Types of mortgages

There are several types of mortgages to choose from in the UK.

Repayment

Most residential mortgages are repayment mortgages (or capital and interest mortgages), which means your monthly payments will pay off the capital borrowed and the interest. This means, once you finish making payments, your mortgage will be fully repaid.

Interest-only

In contrast to repayment mortgages, the monthly payments for an interest-only mortgage solely cover the interest charged. This means, at the end of the term, you will need to repay the capital using money from another source.

Interest-only mortgages aren’t very common and are typically only available on buy-to-let properties or in selected situations.

Fixed

As the name suggests, fixed rate mortgages mean you pay a fixed rate of interest for the specified term. This means the interest rate and your monthly payments will stay the same for this period, even if the market changes and mortgage rates rise or fall. Lenders typically offer fixed deals for terms of two, three or five years, although longer fixes may be available.

Fixed mortgages can help you to plan your budget as you’ll know exactly how much you need to ring-fence for your mortgage repayments each month.

Variable

Unlike fixed deals, the interest rate on variable mortgage deals can change. This means your payments could go up or down.

There are different types of variable rate mortgages, including tracker mortgages which usually follow the direction of the Bank of England’s base rate. For example, if the base rate drops by 0.25%, the interest rate on a tracker mortgage should drop by 0.25%.

Lenders also have a Standard Variable Rate (SVR) which is the rate you revert to once a fixed deal ends. This can go up or down at the lender’s discretion and doesn’t necessarily follow the exact changes in the base rate, unlike tracker mortgages.

Furthermore, some lenders offer discounted variable rate mortgages. These follow the direction of the lender’s SVR, but at a slightly lower rate. For example, if the SVR is 7.5%, a discounted variable rate may charge 5.5%. Lenders may set a “floor” or “collar” so the interest rate can’t drop below a certain level, or a “cap” that the interest rate can’t go above.

Offset

Offset mortgages use money in a savings account to reduce the amount of interest charged. This means you could reduce your monthly payments or shorten your mortgage term. It’s an alternative to putting down a larger deposit or paying off your mortgage early and means you can still access this money if necessary (although any withdrawals will affect your mortgage).

Lenders deduct the amount you have in savings from your mortgage balance and charge interest on the remainder. This means you pay less interest on your mortgage, but bear in mind your savings typically won’t earn any interest during this period.

For example, if you had a £125,000 mortgage balance and £25,000 in a linked savings account, your monthly mortgage interest would be calculated on £100,000 rather than the full balance, resulting in lower repayments. If you then switch to a different mortgage, you can get the £25,000 back to put in a savings pot that does pay out savings interest.

What type of mortgage is best?

  Good if: Not so good if:
Fixed rate mortgages You want to know exactly how much your monthly mortgage repayments will be. You think mortgage rates might go down, and are worried you’ll end up paying over-the-odds on a fixed rate deal.
Variable and tracker rate mortgages You believe mortgage rates will go down in the foreseeable future. You’re on a tight budget and need to know exactly how much your mortgage repayments will cost you every month.
Offset mortgages You have a decent savings pot you are happy to leave untouched for a period. You may have to dip into your savings or want to earn savings interest.

 

What influences the movement of mortgage rates?

A wide variety of factors affect UK mortgage rates. Some of the elements that lenders consider when pricing their deals include:

  • The Bank of England’s base rate. The base rate affects how much it costs lenders to borrow money from the Bank of England, which in turn influences how much it costs consumers to borrow. When the base rate goes up, this often causes mortgage rates to go up.
  • Inflation. Because inflation affects the base rate and the wider economy, it can also affect mortgage rates.
  • Swap rates. In basic terms, these are the rates that mortgage lenders pay for their fixed deals based on their expectations of what the base rate will be in the future. Higher swap rates mean lenders are likely to price their deals higher. Swap rates can be influenced by other economic factors as well as the base rate.
  • Political events. Government policies and announcements can affect mortgage rates. This was particularly noticeable in September 2022 when the mini-Budget caused shockwaves across the mortgage market.
  • Wider economic factors. The stability of the economy and factors such as unemployment and wage growth could indirectly affect mortgage rates. Global events, such as the political and economic situation in other countries, can also play a role.
  • The lender’s own situation and funding requirements. While lenders will consider external factors when setting their mortgage rates, their own circumstances and targets will also influence the rate they charge. For example, their risk appetite, funding levels and how competitive they want to be will affect where a lender sets its mortgage rates.

It’s also worth noting that your own individual situation affects the mortgage rate you receive, such as your credit history, your financial situation and the proportion of the property you need to finance.

Are mortgage rates going up or down?

After rising rapidly in the aftermath of the 2022 mini-Budget and peaking in August 2023 due to a succession of base rate increases, UK mortgage rates have generally been on a downwards trend since then.

However, 2024 has seen some fluctuations as average mortgage rates edged higher for the first half of the year before declining from August onwards. But, with inflation expected to remain relatively high in 2025 after the 2024 Autumn Budget, which is likely to slow down any further cuts to the base rate, mortgage rates have been creeping higher again in the last few months of 2024.

Despite this increase, mortgage rates are still significantly below their 2022 and 2023 peaks. Many experts also expect rates to eventually fall further in 2025 as the base rate is predicted to drop, albeit at a slower rate than first thought.

However, it’s important to remember that the mortgage market doesn’t necessarily follow predictions and can change relatively quickly.

What banks offer the best mortgage rates?

The UK lenders offering the best mortgage rates can vary all the time. Furthermore, it isn’t just the main high street banks that necessarily offer the most competitive deals as building societies and specialist lenders could offer some of the lowest rates.

Lenders may also focus and specialise in offering different types of mortgages. For example, one lender may offer the lowest two-year fix for remortgages while a different lender may offer the lowest five-year fixed rate for those looking to move home.

Similarly, certain lenders may specialise in offering higher loan-to-value (LTV) mortgages to first-time buyers or to borrowers who may have poor credit histories, for example.

For an up-to-date list of the lenders offering the best mortgage rates, select the charts above. But bear in mind the deals with the lowest rates won’t necessarily be the best or cheapest option for you.

See our weekly roundup of the best mortgage rates

Our weekly mortgage roundup highlights the lowest fixed rates for remortgage borrowers, homemovers and first-time buyers. We also feature some other mortgage deals that feature as Moneyfacts Best Buys, based on their overall cost and value.

How can I find the best deal?

The key to finding the best mortgage deal is research. It’s important you don’t just choose the first deal you see, or a mortgage offered by your bank account provider, as this may not necessarily be the best option for you.

Instead, you should compare rates, by using our whole-of-market mortgage charts, for example.

As well as looking at rates, it’s just as crucial to assess the other features of a deal to make sure it’s the best fit for your situation.

For example, you should make sure the maximum LTV on a deal is sufficient for the amount of your property you need to finance.

You should also consider all the fees charged by a lender and the extra incentives a deal may offer (such as free valuations, free legal fees, cashback and “green home” rewards), as these will help determine the overall value of a deal.

It may be worth checking the lender’s rules on overpayments and any early repayment charges (ERCs) it may apply, especially if you think you will want to pay more than your monthly payment.

Furthermore, some mortgages are only available in certain areas or for certain types of properties or borrowers, so always check the eligibility criteria of a deal.

This can be a lot to think about, so many borrowers may find it useful to speak to a professional mortgage broker.

Mortgage brokers, or advisers, can offer independent support and guidance to help you find the best mortgage deal for your circumstances, so you’re not left on your own to figure out which deal to apply for.

Should I speak to a mortgage broker?

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.

 

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Your home may be repossessed if you do not keep up repayments on your mortgage.

What are mortgage calculators and are they useful?

Mortgage calculators are helpful tools that can give you an indication of how much a mortgage could cost you and the property price you could afford.

You can input different figures and make adjustments before applying for a mortgage, so you know more about how much you can realistically afford.

It’s worth noting that using a mortgage calculator won’t require you to put in any personal information or affect your credit score.

There are a range of different calculators available, each serving different purposes.

  • How much can I borrow calculator: By inputting your annual income, you can see an estimate of how much you may be able to borrow.
  • Loan-to-value calculator: This simply works out the loan-to-value (LTV) you need for your mortgage, based on the property’s value and the amount you need to borrow.
  • Mortgage repayment calculator: Once you start comparing mortgages, this calculator allows you to see the estimated cost of the monthly payments, based on how much you want to borrow, the mortgage term and the interest rate.

While the exact amount you can borrow and your monthly repayments may vary from those given by the calculators, they can still act as a useful guide if you’re at the start of the mortgage and home-buying process.

Mortgage rates FAQs

How long should you fix a mortgage for?

How long you fix a mortgage for is a personal decision. If you want the peace of mind that your monthly payments won’t change, you may want to consider a five-year fix or longer. Long-term fixed deals may be particularly appealing if you think mortgage rates may rise in the coming years, but this also means you won’t be able to take advantage of lower rates if they fall (unless you choose to pay a fee to leave your deal early).

Alternatively, if you think mortgage rates could fall, you may opt for a two-year fix in the hope that you will be able to lock in a lower rate once your existing deal ends. However, if rates rise, you could end up paying more than if you’d opted for a longer fixed deal.

The mortgage market can be unpredictable so there’s no right answer to how long to fix for. Speaking to a mortgage broker could help you decide which option to choose.

Is it better to fix for two or five years?

It’s impossible to say whether it’s better to fix your mortgage for two or five years as this depends on your individual preferences and the direction of mortgage rates over the next few years.

The leading five-year fixed rates are currently slightly lower than two-year fixed rates, and the longer deal means you’re protected if rates rise. However, those on a two-year fix could end up better off if rates drop as they would be able to lock into a cheaper deal. Speak to a mortgage broker if you need advice tailored to your situation.

Do you get better mortgage rates with your bank?

Depending on your situation, it may be possible to get better mortgage rates with your bank. For example, some banks may offer more attractive rates to customers who have a certain current account. However, just because these banks may offer lower rates to some of their customers than to other borrowers, it doesn’t necessarily mean they offer the best rates on the market. Other banks and lenders may offer even more competitive rates, which is why it’s so important to compare deals from a range of providers.

What additional fees may I need to pay?

Mortgage deals often come with a range of fees, which may include:

  • arrangement fees (sometimes known as completion or product fees)
  • booking fees
  • valuation fees
  • legal, or conveyancing, fees
  • broker fees.

Depending on the lender and/or broker you use, some (or all) of these charges may not apply. Bear in mind that lenders may give you the option to add some of these fees to your mortgage, but this is likely to cost more in the long run than paying them upfront.

Aside from the mortgage-related fees, some other costs of buying a home could include solicitor fees, Stamp Duty and survey fees.

How can you improve your chances of getting approved?

There are several ways you may be able to improve your chances of getting a mortgage, including:

  • trying to improve your credit score
  • putting down a larger deposit
  • managing your existing debts effectively
  • not applying for credit just before you apply for a mortgage
  • trying to cut back on your spending in the months before applying
  • obtaining a mortgage in principle (also known as agreement in principle) to see how much you could borrow (without affecting your credit score).

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Rhiannon Philps

Content Writer

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