The best UK residential mortgage rates this week

Last updated: 17 April 2024 at 15:45

Many lowest mortgage rates remain unchanged this week, as it’s revealed average house prices fell 0.2% in the year to February.

The average price of a UK property fell by 0.2% in the year to February 2024, found the latest UK House Price Index (HPI) from HM Land Registry and the Office for National Statistics (ONS). The same release revealed UK house prices stood at an average of £281,000 that same month.

Despite the drop, it’s a marked improvement from January 2024 when UK house prices experienced an annual fall of 1.3%. What’s more, property prices have seen an increase month-on-month, rising by 0.4% between January and February.

If you’ve decided now is the right time to move home, remortgage or join the property ladder, we provide more information on some of the lowest mortgage rates currently available. However, as the lowest rate may not always be the most 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

If you’re a borrower looking to refinance your current property, MPowered Mortgages continues to offer the lowest two and three-year fixed remortgage rates on our charts for yet another week. These deals can finance up to 60% of your home at a rate of 4.57% and 4.49%, respectively. Both are available to borrowers in England and Wales via intermediaries; they each cost £999 in product fees and include a free valuation as well as free legal fees as incentives.

However, if you hold less equity in your home, you’ll need a mortgage which caters to a larger loan-to-value (LTV) ratio. A Moneyfacts Best Buy option from Hanley Economic BS, for instance, provides remortgage borrowers in England and Wales with a two-year fixed deal which can finance up to 80% of a property at 4.99%. This mortgage can be found both directly and via intermediaries, costing £799 in product fees. What’s more, it also includes a free valuation and free legal fees.

Alternatively, a Moneyfacts Best Buy deal from Vernon BS may appeal if you’re specifically looking for a three-year fixed term. Its mortgage can finance up to 80% LTV at 4.59%, fixed until 30 June 2027, and is available either directly or via intermediaries to borrowers in England and Wales. While it should be noted this deal doesn’t come with any additional incentives, product fees are below average at £499.

Meanwhile, for a longer initial fixed term, NatWest continues to provide the lowest five-year fixed remortgage rate this week. Its online-exclusive deal can be accessed widely throughout Great Britain and Northern Ireland directly from the lender, charging 4.18% to finance up to 60% LTV. Although it comes with a significant product fee of £1,495, this mortgage offers borrowers a free valuation and free legal fees as incentives.

Again, Vernon BS provides a Moneyfacts Best Buy alternative which remortgage borrowers can use to finance a larger portion of their property. This mortgage charges 4.49% to finance up to 80% LTV, fixed until 30 June 2029. Like its three-year counterpart, it includes no additional incentives but comes with a larger product fee of £999.

The best mortgage rates for homemovers

It’s a similar story when it comes to deals for homemovers; MPowered Mortgages continues to offer the lowest two and three-year fixed rates in this sector this week at 4.52% and 4.42% respectively. As with its remortgage deals, both these products are available to borrowers in England and Wales via intermediaries, who can also take advantage of the free valuation included as an incentive. However, while its two-year mortgage costs £999, the three-year fix comes with much steeper product fees of £1,999.

Therefore, to minimise upfront costs, homemovers may want to consider a Moneyfacts Best Buy option from Barclays Mortgage which comes with no product fees. While this two-year fixed deal charges a slightly higher rate of 4.68% it’s more widely available throughout Great Britain and Northern Ireland, either direct from the lender or via intermediaries. Furthermore, it includes a free valuation as an additional incentive.

As for a three-year fixed homemoving mortgage with fewer product fees, a deal from first direct charging 4.89% costs a below average £490. It can finance up to 85% LTV, comes with a free valuation, and is available directly to borrowers in Great Britain and Northern Ireland.

If you’re a homemover looking for a five-year initial fixed term, meanwhile, the lowest rate can still be found either direct or via intermediaries from Barclays Mortgage. Charging 4.17%, this deal can finance up to 60% of your new home and comes with a free valuation as an incentive.  It’s available to borrowers throughout Great Britain and Northern Ireland, costing £899 in product fees. When considering all these factors, it earns a place on our Moneyfacts Best Buy table.

However, to finance a larger portion of your new property, you could consider an alternative Moneyfacts Best Buy deal from HSBC instead. This five-year fixed mortgage charges 4.65% to finance up to 90% LTV and is available direct or via selected intermediaries to borrowers in Great Britain and Northern Ireland. Despite costing £999 in product fees, it includes £350 cashback as an incentive, as well as offering a free valuation.

The best first-time buyer mortgages

If you’re a first-time buyer with a 10% deposit, Cumberland BS still offers the lowest two-year fixed rate at 5.07% this week. This deal can be found directly from the lender, costing £999 in product fees and inclusive of a free valuation. However, while it’s available to borrowers throughout Great Britain, this excludes those in London and Southeast England.

These borrowers will therefore need to consider other options. Coventry BS provides the next lowest rate in this sector at 5.11% and its deal is more widely available throughout Great Britain. Available direct or through selected intermediaries, it costs £999 in arrangement fees and comes with a free valuation.

Alternatively, you could consider a longer initial fixed term, with Clydesdale Bank offering first-time buyers the lowest five-year fixed rate at 90% LTV. This broker exclusive deal can be found via intermediaries in Great Britain, charging 4.64%. It should be noted, though, it comes with a significant £1,499 product fee and includes no additional incentives.

If having access to a range of incentives is a priority, you’ll therefore want to consider other options. HSBC, for instance, offers first-time buyers a five-year fixed deal charging only a marginally higher rate of 4.65%. What’s more, this mortgage includes £500 cashback as well as a free valuation, which could be put towards covering moving costs or furnishing your first home. To find this deal, borrowers in Great Britain and Northern Ireland can contact HSBC directly or go through selected intermediaries.

Have a smaller initial deposit? The Co-operative Bank and The Co-operative Bank for Intermediaries now both provide the lowest two-year fixed rate at 95% LTV. These lenders each offer deals charging borrowers in Great Britain a rate of 5.46%, costing £999 in product fees, and which come with a free valuation as well as £250 cashback. Their main difference is the mortgage from The Co-operative Bank is available direct from the lender, while, as its name suggests, the deal from The Co-operative Bank for Intermediaries can only be found via selected intermediaries.

Meanwhile, for a longer initial fixed term with a 5% deposit, first-time buyers in England and Wales can still find the lowest rate in this sector from Family Building Society. This mortgage charges a rate of 4.89% and costs £599 in product fees. By way of incentives, it includes a free valuation and £250 cashback. However, as a family mortgage, borrowers will need a family member who’s willing to use their own savings or property as security for the debt.

Otherwise, first-time buyers looking to reduce upfront costs further could consider a Moneyfacts Best Buy alternative from Cumberland BS. Its five-year deal charges a slightly higher rate of 5.10% but comes with no additional product fees. Borrowers in Great Britain, excluding London and the Southeast, can find this deal direct from the lender and benefit from the free valuation included as an incentive.