Last updated: 26 March 2025 at 12:45
Selected two-year fixed rates drop amid signs of a strong buyers’ market.
While most of the lowest fixed mortgage rates stayed the same this week, there were some drops in the homemover and first-time buyer markets after several lenders cut rates.
This comes as the Zoopla House Price Index for February found that the average house price rose by 1.8% to £267,500 in the year to February 2025, a slightly slower rate than in January 2025.
Part of the reason for this slower rise is that the number of homes being listed for sale is rising more rapidly than the number of sales being agreed, indicating that the market is swinging in favour of buyers.
The number of homes up for sale is 11% higher than one year ago and is expected to continue rising throughout the spring, which is encouraging for anyone starting their property search in the coming months.
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: 26/03/2025
Rate: 4.12% fixed until 2 July 2027, before reverting to 6.75%
Initial period: 2 years
Product fee: £999
Maximum loan-to-value: 60%
APRC: 6.4%
Representative example: £210,000 mortgage over 25 years initially at 4.12% fixed for 27 months reverting to 6.75% variable for term. 27 monthly payments of £1122.42 and 273 monthly payments of £1425.82. Total amount payable £421,158.20 includes loan amount, interest of £209,554, valuation fees of £0 and product fees of £999. The overall cost for comparison is 6.4% APRC representative.
Rate: 4.09% fixed for three years, before reverting to 6.74%
Initial period: 3 years
Product fee: £490
Maximum loan-to-value: 60%
APRC: 6.2%
Representative example: £210,000 mortgage over 25 years initially at 4.09% fixed for 36 months reverting to 6.74% variable for term. 36 monthly payments of £1118.92 and 264 monthly payments of £1415.60. Total amount payable £414,869.52 includes loan amount, interest of £204,000, valuation fees of £0 and product fees of £490. The overall cost for comparison is 6.2% APRC representative.
Rate: 3.99% fixed for five years, before reverting to 6.74%
Initial period: 5 years
Product fee: £490
Maximum loan-to-value: 60%
APRC: 5.8%
Representative example: £210,000 mortgage over 25 years initially at 3.99% fixed for 60 months reverting to 6.74% variable for term. 60 monthly payments of £1107.30 and 240 monthly payments of £1389.52. Total amount payable £400,792.80 includes loan amount, interest of £189,923, valuation fees of £0 and product fees of £490. The overall cost for comparison is 5.8% APRC representative.
The lowest remortgage rates remained the same this week, with Santander continuing to offer the lowest two-year fixed deal at 4.12%. Borrowers across Great Britain and Northern Ireland can apply for this deal from the lender directly or via an intermediary to finance a maximum of 60% loan-to-value (LTV). While they will have to pay a £999 arrangement fee, borrowers can choose between the perks of free legal fees or £250 cashback. Furthermore, those in England, Wales and Northern Ireland can receive a free valuation (up to £1,190) and those in Scotland can receive £95 towards valuation costs.
Remortgage borrowers in Great Britain and Northern Ireland who need to finance a larger proportion of their property may be interested in a Moneyfacts Best Buy deal from first direct instead. This two-year fix charges 4.42% and has a maximum LTV of 75%, as well as offering the incentives of a free valuation and free legal fees. It is available from the lender directly.
Meanwhile, first direct offers the lowest rates on three- and five-year fixed remortgage deals for another week. Its three-year fix charges 4.09% while its five-year fix charges 3.99%. Both deals can finance up to 60% of your property purchase, charge a product fee of £490 and are available across Great Britain and Northern Ireland. Borrowers can apply for these deals from the lender directly and, as extra incentives, can receive a free valuation and free legal fees.
Alternatively, borrowers in Great Britain in search of a three-year fix with a higher maximum LTV could consider a deal from Furness BS that can finance up to 80% LTV. Charging 4.53% alongside a £999 product fee, this deal comes with a free valuation (up to £665) and £250 cashback, earning itself a position as a Moneyfacts Best Buy.
Yorkshire Building Society offers a five-year fix at 4.36% that can also finance up to 80% LTV. Featuring as a Moneyfacts Best Buy, this deal charges a £995 fee and offers the incentives of a free valuation and free legal fees. This deal is available from the lender directly to borrowers in Great Britain and Northern Ireland.
Last updated: 26/03/2025
Rate: 4.06% fixed until 31 May 2027, before reverting to 7.99%
Initial period: 2 years
Product fee: £999
Maximum loan-to-value: 60%
APRC: 7.4%
Representative example: £250,000 mortgage over 25 years initially at 4.06% fixed for 26 months reverting to 7.99% variable for term. 26 monthly payments of £1327.89 and 274 monthly payments of £1883.13. Total amount payable £551,651.76 includes loan amount, interest of £300,503, valuation fees of £100 and product fees of £999. The overall cost for comparison is 7.4% APRC representative.
Rate: 4.06% fixed until 31 May 2027, before reverting to 7.99%
Initial period: 2 years
Product fee: £999
Maximum loan-to-value: 60%
APRC: 7.4%
Representative example: £250,000 mortgage over 25 years initially at 4.06% fixed for 26 months reverting to 7.99% variable for term. 26 monthly payments of £1327.89 and 274 monthly payments of £1883.13. Total amount payable £551,551.76 includes loan amount, interest of £300,503, valuation fees of £0 and product fees of £999. The overall cost for comparison is 7.4% APRC representative.
Rate: 4.06% fixed until 31 May 2028, before reverting to 7.99%
Initial period: 3 years
Product fee: £999
Maximum loan-to-value: 60%
APRC: 7.1%
Representative example: £250,000 mortgage over 25 years initially at 4.06% fixed for 38 months reverting to 7.99% variable for term. 38 monthly payments of £1327.89 and 262 monthly payments of £1861.88. Total amount payable £539,421.38 includes loan amount, interest of £288,272, valuation fees of £100 and product fees of £999. The overall cost for comparison is 7.1% APRC representative.
Rate: 4.06% fixed until 30 June 2030, before reverting to 6.49%
Initial period: 5 years
Product fee: £899
Maximum loan-to-value: 60%
APRC: 5.6%
Representative example: £250,000 mortgage over 25 years initially at 4.06% fixed for 63 months reverting to 6.49% variable for term. 63 monthly payments of £1327.89 and 237 monthly payments of £1620.74. Total amount payable £468,801.45 includes loan amount, interest of £217,772, valuation fees of £0 and product fees of £899. The overall cost for comparison is 5.6% APRC representative.
Rate: 4.06% fixed until 2 July 2030, before reverting to 6.75%
Initial period: 5 years
Product fee: £999
Maximum loan-to-value: 60%
APRC: 5.8%
Representative example: £250,000 mortgage over 25 years initially at 4.06% fixed for 63 months reverting to 6.75% variable for term. 63 monthly payments of £1327.89 and 237 monthly payments of £1653.89. Total amount payable £476,903.00 includes loan amount, interest of £225,629, valuation fees of £0 and product fees of £999. The overall cost for comparison is 5.8% APRC representative.
After Halifax and Lloyds Bank made a selection of cuts last week, the lowest two-year fixed rate has now edged lower to 4.06%. This means that the lowest two-, three- and five-year fixed rates for homemovers all now stand at 4.06%.
The two-year fixed deals from Halifax and Lloyds Bank, as well as the three-year fix from Halifax that continues to offer the lowest rate of 4.06%, can all finance up to 60% LTV and charge an arrangement fee of £999. They are available across Great Britain and Northern Ireland and could be particularly appealing to those moving to any energy-efficient home as they come with a Green Home cashback of £250 for properties with an Energy Performance Certificate (EPC) rating of 81 or higher. However, while the deals from Halifax offer no other perks, the deal from Lloyds Bank also includes the benefit of a free valuation.
Alternatively, homemovers in need of a two- or three-year fix with a higher LTV could consider two Moneyfacts Best Buy deals from first direct that can finance up to 75% LTV. The two-year fix charges 4.33% while the three-year fix charges 4.29%. Both deals come with a £490 arrangement fee and a free valuation.
Meanwhile, Barclays Mortgage and Santander continue to offer the lowest five-year fix, also at 4.06%. Deals from both providers are available across Great Britain and Northern Ireland, have a maximum LTV of 60% and offer a free valuation (up to £1,190 for Santander). However, while Santander charges a £999 arrangement fee, Barclays Mortgage has a slightly smaller fee of £899. Borrowers can apply for these deals from the lenders directly or via intermediaries.
Last updated: 26/03/2025
Rate: 4.74% fixed until 30 June 2027, before reverting to 6.49%
Initial period: 2 years
Product fee: £899
Maximum loan-to-value: 90%
APRC: 6.3%
Representative example: £200,000 mortgage over 25 years initially at 4.74% fixed for 27 months reverting to 6.49% variable for term. 27 monthly payments of £1139.08 and 273 monthly payments of £1333.92. Total amount payable £395,944.32 includes loan amount, interest of £194,915, valuation fees of £0 and product fees of £899. The overall cost for comparison is 6.3% APRC representative.
Rate: 4.61% fixed until 31 May 2030, before reverting to 6.74%
Initial period: 5 years
Product fee: £999
Maximum loan-to-value: 90%
APRC: 6.0%
Representative example: £200,000 mortgage over 25 years initially at 4.61% fixed for 62 months reverting to 6.74% variable for term. 62 monthly payments of £1124.19 and 238 monthly payments of £1335.98. Total amount payable £388,807.02 includes loan amount, interest of £187,663, valuation fees of £0 and product fees of £999. The overall cost for comparison is 6.0% APRC representative.
Rate: 4.61% fixed until 1 June 2030, before reverting to 7.49%
Initial period: 5 years
Product fee: £995
Maximum loan-to-value: 90%
APRC: 6.3%
Representative example: £200,000 mortgage over 25 years initially at 4.61% fixed for 62 months reverting to 7.49% variable for 22 months and 7.24% variable for term. 62 monthly payments of £1124.19, 22 monthly payments of £1414.99 and 216 monthly payments of £1390.19. Total amount payable £402,468.60 includes loan amount, interest of £201,111, valuation fees of £214 and product fees of £995. The overall cost for comparison is 6.3% APRC representative.
Rate: 5.08% fixed until 31 May 2027 before reverting to 7.99%
Initial period: 2 years
Product fee: £999
Maximum loan-to-value: 95%
APRC: 7.7%
Representative example: £250,000 mortgage over 25 years initially at 5.08% fixed for 26 months reverting to 7.99% variable for term. 26 monthly payments of £1473.15 and 274 monthly payments of £1896.66. Total amount payable £559,135.74 includes loan amount, interest of £307,987, valuation fees of £100 and product fees of £999. The overall cost for comparison is 7.7% APRC representative.
Rate: 5.08% fixed until 31 May 2027 before reverting to 7.99%
Initial period: 2 years
Product fee: £999
Maximum loan-to-value: 95%
APRC: 7.6%
Representative example: £250,000 mortgage over 25 years initially at 5.08% fixed for 26 months reverting to 7.99% variable for term. 26 monthly payments of £1473.15 and 274 monthly payments of £1896.66. Total amount payable £559,035.74 includes loan amount, interest of £307,987, valuation fees of £0 and product fees of £999. The overall cost for comparison is 7.6% APRC representative.
Rate: 4.98% fixed until 30 June 2030, before reverting to 7.84%
Initial period: 5 years
Product fee: £1,495
Maximum loan-to-value: 95%
APRC: 6.8%
Representative example: £250,000 mortgage over 25 years initially at 4.98% fixed for 63 months reverting to 7.84% variable for term. 63 monthly payments of £1458.56 and 237 monthly payments of £1825.83. Total amount payable £526,240.99 includes loan amount, interest of £274,611, valuation fees of £0 and product fees of £1495. The overall cost for comparison is 6.8% APRC representative.
Unfortunately for first-time buyers with a 10% deposit, the lowest two- and five-year fixed rates are unchanged this week. Barclays Mortgage offers the lowest two-year fix for another week, with its deal charging 4.74% at a maximum LTV of 90%. Borrowers in Great Britain and Northern Ireland can apply for this deal, which comes with an £899 arrangement fee and a free valuation, from the lender directly or via an intermediary.
Alternatively, Barclays Mortgage offers another two-year fix with a maximum LTV of 90% that doesn’t charge any product fees. At a rate of 4.93%, this deal also offers the perk of a free valuation.
For a longer fixed deal, HSBC continues to offer the lowest five-year fixed rate with a maximum LTV of 90% at 4.61%. However, this week it is now joined by Virgin Money after this lender recently cut a selection of its rates. The deal from HSBC charges a £999 booking fee and comes with the perks of a free valuation and £350 cashback. Meanwhile, Virgin Money’s deal charges a £995 arrangement fee and gives borrowers £300 cashback as an extra benefit. Deals from both lenders are available to borrowers in Great Britain and Northern Ireland.
While Halifax and Lloyds Bank still offer the lowest two-year fixed rate for first-time buyers in Great Britain and Northern Ireland with a 5% deposit, this has dropped from last week after these banks made selected cuts. Now charging 5.08%, these deals may be particularly attractive to those moving into an energy-efficient home as they offer £250 cashback on properties with an EPC rating of 81 or higher. Both deals charge a £999 arrangement fee but, while the deal from Halifax comes with no other incentives, Lloyds Bank also offers borrowers the perk of a free valuation.
Although the lowest two-year fixed rate dropped this week, the lowest five-year fix with a maximum LTV of 95% is still offered by Leek Building Society at 4.98%. Available in England and Wales, this deal offers the perk of a free valuation but borrowers should note that it charges a sizeable product fee of £1,495.
First-time buyers in England and Wales wanting to minimise upfront costs could instead consider a five-year fix from Marsden BS that doesn’t charge any product fees. This deal charges a marginally higher rate of 4.99% and features as a Moneyfacts Best Buy. However, unlike some other deals, it doesn’t offer any other additional incentives.
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