The best UK residential mortgage rates this week

Last updated: 8 May 2024 at 14:20

House prices plateau while lowest mortgage rates continue to see some volatility.

Average property prices in the UK saw little growth between March and April, with Halifax’s latest House Price Index (HPI) reporting a monthly increase of just 0.1%. This translates to a £168 increase in the price of a typical UK home, to stand at £288,949.

“While there is always much scrutiny of monthly price changes – and a degree of volatility is to be expected given current market conditions – the reality is that average house prices have plateaued in the early part of 2024,” said Amanda Bryden, Head of Mortgages at Halifax.

“This reflects a housing market finding its feet in an era of higher interest rates. While borrowing costs remain more expensive than a few years ago, homebuyers are gaining confidence from a period of relative stability,” Bryden went on to explain.

Indeed, this confidence is reflected in the latest Money and Credit figures released by the Bank of England last week, which found the number of net mortgage approvals reached its highest level since September 2022.

Nevertheless, Bryden acknowledged affordability constraints present a “significant challenge” to many prospective and existing borrowers.

Below, we provide more details on the lowest mortgage rates available to remortgage borrowers, homemovers and first-time buyers. However, as the lowest rate may not always be the most cost-effective choice for your needs and circumstances, we’ve also offered some alternative deals which feature on our Moneyfacts Best Buy Chart based on their overall true cost.

Otherwise, for a complete overview of the mortgage market, visit our charts.

The best remortgage rates

Remortgage borrowers will no doubt be relieved to see lowest rates in this corner of the market stabilise following last week’s volatility.

A deal from Cumberland BS continues to provide the lowest two-year fixed rate at 4.78% and can finance a loan-to-value (LTV) of up to 60%. Costing £999 in product fees, borrowers throughout Great Britain can find this particular mortgage both direct from Cumberland BS and via selected intermediaries. It includes a free valuation for properties up to a maximum value of £750,000 as well as free legal fees as incentives.

However, if you’re looking to refinance a larger portion of your home, you’ll need a mortgage which caters to a higher LTV ratio. A deal from first direct, for instance, can finance up to 75% of your current property at 4.98%, fixed for two years. Available direct from the lender to borrowers in Great Britain and Northern Ireland, this mortgage comes with a free valuation and free legal fees as incentives. What’s more, it has a below-average booking fee of £490; all these factors combined earn this product a place on our Moneyfacts Best Buy chart based on overall true cost.

For a slightly longer initial fixed term, meanwhile, MPowered Mortgages charges remortgage borrowers in England and Wales the lowest three-year rate at 4.54%. This deal, costing £999 in product fees, is only available via intermediaries and can be used to finance up to 60% of your property. In addition to a free valuation, it also includes £500 cashback on completion which could be put towards home improvements.

Alternatively, if you’re a remortgage borrower in England and Wales, a Moneyfacts Best Buy deal from Vernon BS can finance a larger portion of your home. Its three-year fixed mortgage charges 4.69% to cater for up to 80% LTV and is available either direct or via selected intermediaries. While this deal doesn’t include any additional incentives, its below-average product fees of £499 may appeal if you’re trying to minimise upfront costs.

Otherwise, an online-exclusive deal directly from NatWest continues to offer the lowest five-year fixed remortgage rate this week. Charging 4.32% to finance up to 60% of your home, this mortgage also includes a free valuation and free legal fees. It’s widely available throughout Great Britain and Northern Ireland but borrowers may want to keep in mind the considerable fee of £1,495 attached to this product.

Instead, another deal from Vernon BS has fewer upfront costs. This five-year fixed mortgage charging 4.49% and to finance up to 80% LTV costs £999 in product fees. However, it’s only available to remortgage borrowers in England and Wales either direct or via selected intermediaries. Furthermore, it doesn’t include any additional incentives. Nevertheless, it lands a place on our Moneyfacts Best Buy chart based on its overall true cost.

The best mortgage rates for homemovers

It’s a different picture on our homemoving charts, which feature new lowest rates this week.

The lowest two-year fixed rate rose yet again and is now offered by NatWest and NatWest Int Sols at 4.77%. Their deals share some similarities: both cost £1,495 in product fees, can finance up to 60% LTV and include a free valuation. While the former can be found direct by borrowers throughout Great Britain and Northern Ireland, the latter is only available through intermediaries.

In contrast, the lowest three-year fixed rate dipped as MPowered Mortgages reduced some of its product range. Now charging 4.59% to finance up to 60% of your new home, this deal also includes a free valuation as an incentive. Borrowers in England and Wales can find this mortgage via intermediaries, costing £999 in product fees. However, if you live elsewhere in the UK, you’ll need to consider other three-year fixed options.

HSBC, for example, provides an alternative which is more widely available throughout Great Britain and Northern Ireland. While this Moneyfacts Best Buy deal comes with a higher rate of 4.74%, it can finance a larger portion of your new home - up to 75% LTV. Costing £999 in product fees, you can apply for this mortgage either direct with the lender or via selected intermediaries. It also includes a free valuation as an added incentive.

Meanwhile, the lowest five-year fixed rate also saw a slight uptick this week. It’s now provided by Nationwide BS with a deal charging 4.34% to finance up to 60% of your new home. Despite costing a considerable £1,499 in product fees, this mortgage offers a free valuation as well as the opportunity to earn cashback as part of a Green Reward. This means if you’re moving to a property with an Energy Performance Certificate (EPC) score of 86 to 91, you could earn £250 cashback, while properties with an EPC score of 92 or more could receive £500 cashback. However, in order to apply for this deal either direct or through an intermediary, you’ll need to borrow at least £300,000 to be eligible.

Looking to borrow less? You could consider the next lowest five-year fixed rate from Lloyds Bank instead. Its deal can also finance up to 60% LTV at only a marginally higher rate of 4.36%. This mortgage is available directly from Lloyds Bank to homemovers in Great Britain and Northern Ireland borrowing at least £100,000. It costs £999 in product fees but includes a free valuation as well as £250 cashback if your property has an EPC score of 81 or higher.

The best first-time buyer mortgages

As for first-time buyers, those in Great Britain with a 10% deposit can continue to find the lowest two-year fixed rate from Clydesdale Bank this week at 5.19%. However, it should be noted this broker exclusive mortgage comes with a significant product fee of £1,499 and doesn’t include any additional incentives.

In contrast, if you’re a first-time buyer looking for a longer initial fixed term, the lowest five-year fixed rate saw a slight increase this week. Now offered by first direct, its deal charges 4.78% to cater for up to 90% LTV. Borrowers in Great Britain and Northern Ireland can apply for this mortgage directly with the lender. It costs a below average £490 in product fees, while also including a free valuation as an incentive.

However, those looking to maximise on incentives may want to consider other options. A two-year mortgage from HSBC charging 5.23% to finance up to 90% LTV, for instance, comes with a free valuation and £250 cashback. Alternatively, the lender also offers a five-year fix at 4.83% which includes a more substantial £500 cashback as well as a free valuation. Both products are widely available throughout Great Britain and Northern Ireland, either direct or via selected intermediaries, and cost £999 in booking fees.

Have a smaller deposit? Loughborough BS now offers first-time buyers the lowest two-year fixed rate at 95% LTV. Its mortgage charging 5.49% can be found either direct or via intermediaries in England and Wales, costing £999 in product fees. In the way of incentives, it also includes a free valuation.

Alternatively, you may want to consider a mortgage that features on our Moneyfacts Best Buy chart.  Despite charging a higher rate of 5.84%, a two-year deal from Coventry BS could help to minimise upfront costs, as it comes with no additional product fees. What’s more, it also includes £500 cashback and a free valuation as incentives. To apply for this particular mortgage, first-time buyers can find it either directly from Coventry BS or via intermediaries.

Finally, The Co-operative Bank and The Co-operative Bank for Intermediaries both now offer the lowest five-year fixed rate to first-time buyers with a 5% deposit. However, at 5.21%, this has seen a considerable jump since last week. Nevertheless, both mortgages include a free valuation and £250 cashback to sweeten the deal. The former can be applied for directly, while, as its name suggests, the latter is exclusive to intermediaries throughout Great Britain.