Best mortgage rates in the UK

10 min Read Published: 13 Jun 2024

Best mortgage rates in the UKIn this article, we share the best mortgage rates in the UK for various mortgage types as well as deals for those moving home, first-time buyers and buy-to-let purchases. You may also wish to read our article, "Which is the best mortgage lender in the UK?" which highlights the best mortgage lenders based on specific mortgage needs.

You can jump to the best rates in this article by using the following links:

Best fixed-rate mortgage deals in the UK

A fixed-rate mortgage means that your mortgage payment will not change for a set period of time. A fixed-rate mortgage can be secured for 2, 3, 5,7 or 10 years with some rates available for the full term of your mortgage.

Below we have shown the best current fixed-rate mortgage deals for 2 years, 5 years and 10 years. The rates are based on a 60%, 80% and 90% loan-to-value purchase of a property that costs £350,000 where the mortgage is taken over 25 years. In order to see the latest mortgage deals you should use our mortgage comparison tool. However, some deals are not available via comparison sites so it is advisable to speak to a mortgage broker* who can find the best mortgage for your personal circumstances. You can also find more fixed-rate deals in our article, "Best fixed-rate mortgage deals in the UK".

Best 2-year fixed-rate mortgage deals

Mortgage lender Loan to value Fixed interest rate Rate after deal period ends Lender fee
Lloyds Bank 60% 4.75% 8.74% £999
Halifax 80% 5.00% 8.74% £1,099
Clydesdale Bank 90% 5.19% 9.49% £1,839

This mortgage deal assumes a purchase price of £350,000 and an overall mortgage term of 25 years on a repayment basis

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Best 5-year fixed-rate mortgage deals

Mortgage lender Loan to value Fixed interest rate Rate after deal period ends Lender fee
Santander 60% 4.28% 7.50% £1,224
Lloyds Bank 80% 4.62% 8.74% £999
Lloyds Bank 90% 4.71% 8.74% £999

This mortgage deal assumes a purchase price of £350,000 and an overall mortgage term of 25 years on a repayment basis

Best 10-year fixed-rate mortgage deals

Mortgage lender Loan to value Fixed interest rate Rate after deal period ends Lender fee
First Direct 60% 4.64% 6.99% £490
First Direct 80% 4.79% 6.99% £490
Nationwide 90% 5.28% 7.99% £999

This mortgage deal assumes a purchase price of £350,000 and an overall mortgage term of 25 years on a repayment basis

Should you consider a long-term fixed rate for your mortgage?

A long-term fixed rate could be attractive to you if this allows you to predict your mortgage costs over the long term and provides peace of mind that further interest rate rises won't affect what you pay each month.

However, mortgage rates could drop if the base rate is reduced so you may miss out on a cheaper deal. If rates drop and you wish to switch to a cheaper deal, you will need to consider how much it will cost to leave a long-term fixed-rate mortgage deal. For more information on long-term mortgages and early repayment charges, read our articles, "Which are the best long-term fixed-rate mortgages and should you get one?" and "How to avoid mortgage early repayment charges & how they work".

Best tracker mortgage deals in the UK

Choosing a tracker mortgage - sometimes referred to as a variable rate mortgage - means that your interest rate can fluctuate and in turn, so can your monthly mortgage payment. For some, this presents the opportunity to take advantage of reduced rates if they transpire, which you cannot do if you have a fixed-rate mortgage without paying early repayment charges or waiting until your deal ends.

A tracker mortgage will usually start at a lower interest rate than what you will find with a fixed-rate mortgage. Working out which type of mortgage is best for your particular financial circumstances is tricky and it does usually help to enlist the guidance of a mortgage broker*. You will find more information about how to source the right guidance and make the decision that is right for you in our article, "Is a tracker mortgage right for you?".

In the below table, we share the best 2-year and 5-year tracker rate mortgage deals. The rates are based on a 60%, 80% and 90% loan-to-value purchase of a property that costs £350,000 where the mortgage is taken over 25 years. In order to see the latest mortgage deals you should use our mortgage comparison tool.

Best 2-year tracker rate mortgage deal

Mortgage lender Loan to value Tracker interest rate Rate after deal period ends Lender fee
Leek United Building Society 60% 4.99% 8.24% £1,100
Leek United Building Society 80% 4.99% 8.24% £1,100
The Loughborough Building Society 90% 5.45% 7.94% £10

This mortgage deal assumes a purchase price of £350,000 and an overall mortgage term of 25 years on a repayment basis

Best 5-year tracker rate mortgage deal

Mortgage lender Loan to value Tracker interest rate Rate after deal period ends Lender fee
Hanley Economic Building Society 60% 5.79% 8.49% £160
Vernon Building Society 80% 6.09% 8.10% £719
Vernon Building Society 90% 6.09% 8.10% £719

This mortgage deal assumes a purchase price of £350,000 and an overall mortgage term of 25 years on a repayment basis

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Best first-time buyer mortgage deals in the UK

Higher loan-to-value mortgages can be attractive to first-time buyers as they require a lower deposit towards their house purchase. Some lenders provide separate mortgage deals to those who are buying a home for the first time and there are also a number of first-time buyer schemes available. The specialist first-time buyer mortgage broker, Tembo* is especially well placed to help borrowers use specific home-buying schemes as well as lender incentives and mortgage products designed to boost your mortgage application success.

In the below comparison tables, we have listed the best first-time buyer mortgage deals for a 95% LTV. The rates assume a property purchase price of £350,000 where the mortgage is taken over 25 years.

Best 95% LTV / First-time buyer fixed-rate mortgage deal

Mortgage lender Fixed-rate term Fixed interest rate Rate after deal period ends Lender fee
Lloyds Bank 2 year fixed-rate 5.52% 8.74% £999
Scottish Building Society 5 year fixed-rate 4.99% 8.49% £1,545

This mortgage deal assumes a purchase price of £350,000 and an overall mortgage term of 25 years on a repayment basis

Best 95% LTV / First-time buyer tracker rate mortgage deal

Mortgage lender Fixed-rate term Tracker interest rate Rate after deal period ends Lender fee
Hanley Economic Building Society 2-year tracker rate 5.59% 8.49% £160
Vernon Building Society 5-year tracker rate 6.09% 8.10% £719

This mortgage deal assumes a purchase price of £350,000 and an overall mortgage term of 25 years on a repayment basis

Best buy-to-let mortgage deals in the UK

Property investors and landlords have to weigh up the cost of their mortgage against the rental income that they can generate from a property. So, it goes without saying that securing the best rate of interest for a low monthly repayment is vital. Buy-to-let mortgage rates differ from those offered to homebuyers because there is usually deemed to be an extra element of risk that the borrower will become unable to repay the mortgage as they rely on tenants. You will find more specific information about buy-to-let mortgages in our article, "What is the best buy-to-let mortgage?"

In this section, we look at the best interest rates for buy-to-let mortgage purchases and we have based the fixed mortgage rates on a repayment mortgage and the tracker rates on an interest-only mortgage, which is the more common choice.

Again, we have assumed a property purchase price of £350,000 and a mortgage term of 25 years for the purposes of the rates we have listed. For the latest mortgage deals you can use our mortgage comparison tool.

Best fixed-rate buy-to-let mortgage deals

Best 2-year fixed-rate buy-to-let mortgage deal

Mortgage lender Loan to value Fixed interest rate Rate after deal period ends Lender fee
West One 60% 3.19% 10.24% £21,678
Suffolk Building Society 80% 4.79% 8.69% £8,943

This mortgage deal assumes a purchase price of £350,000 and an overall mortgage term of 25 years on a repayment basis

Best 5-year fixed-rate buy-to-let mortgage deal

Mortgage lender Loan to value Fixed interest rate Rate after deal period ends Lender fee
Birmingham Midshires 60% 4.06% 9.59% £6,399
Accord Mortgages 80% 4.99% 8.24% £3,620

This mortgage deal assumes a purchase price of £350,000 and an overall mortgage term of 25 years on a repayment basis

Best tracker rate buy-to-let mortgage deals

Best 2-year tracker rate buy-to-let mortgage deal

Mortgage lender Loan to value Tracker interest rate Rate after deal period ends Lender fee
Monmouthshire Building Society 60% 5.00% 8.49% £4,669
Furness Building Society 80% 5.59% 8.69% £1,435

This mortgage deal assumes a purchase price of £350,000 and an overall mortgage term of 25 years on an interest-only basis

Best 5-year tracker rate buy-to-let mortgage deal

Mortgage lender Loan to value Tracker interest rate Rate after deal period ends Lender fee
Newbury Building Society 60% 5.25% 7.00% £1,400

This mortgage deal assumes a purchase price of £350,000 and an overall mortgage term of 25 years on an interest-only basis

Best green mortgage deals in the UK

Green mortgage rates are available if you are buying a home that meets the lender's green credential requirements. These do vary from one lender to another but you will find that most green mortgage deals are offered to those who can demonstrate the energy efficiency of their property through an EPC certificate with a grade of A or B. Buyers of newly built homes and homes that have been improved in order to increase their energy efficiency can benefit by choosing a green mortgage. A green mortgage may offer you a discounted interest rate or a cashback reward.

However, it is a good idea to compare the best green mortgage deals against normal mortgage deals as you may find that these are more competitive and save you money overall. There are usually no green credentials to the mortgage itself so there may be no ethical argument for choosing a green mortgage over a standard one either.

To understand more about green mortgages, listen to Damien on MTTM Podcast Episode 330:

How does the Bank of England base rate affect your mortgage?

The Bank of England (BoE) base rate is voted on around 8 times a year by the Monetary Policy Committee (MPC). The MPC will adjust the interest rate to control inflation so they may reduce or increase it each time they meet and this has an impact on your mortgage rates. This is because the BoE base rate affects the rate at which it lends to commercial banks but also affects swap rates that are charged on lending between banks. So, an increase in the base rate trickles down to affect the rates you are charged on your mortgage as well as the interest that you can earn on your savings. Our article further explains how the BoE base rate rise affects you.

Will mortgage rates decrease?

Mortgage rates have been recovering after the shock of the September 2022 mini-budget and although we have seen the BoE base rate rising, some rates have started to drop. You can find a detailed analysis to help you work out whether mortgage rates will reduce in our article, "Remortgaging in 2023 – is now the right time to fix & for how long?"

Is now a good time to remortgage?

At the end of your mortgage deal period, you will usually start paying the Standard Variable Rate (SVR) that your lender applies. The SVR is likely to be more expensive than any of the fixed rates that you can switch to on another deal. If you're not sure about tying yourself down to a rate and wish to see if rates drop further before you do so, you may want to stay on your lender's SVR. You are usually not tied to the SVR so there are no early repayment charges or exit fees. Should you wish to transfer your mortgage in time, the lender's SVR can be a short-term arrangement until you decide if you are going to change to another deal.

Fixing your mortgage interest rate will allow you to avoid any hikes to your monthly mortgage payment during your fixed-rate deal period. However, once you are locked into a deal you cannot switch to more favourable rates without paying early repayment charges or exit fees.

If you are unsure what to do, the best course of action is to speak with a mortgage expert* who will review your current mortgage deal and circumstances to give you the guidance that you need. You can also find useful information to help you decide what to do with your mortgage in our articles:

How to get the best mortgage rate

As mortgage rates change from time to time, the easiest way to check for the best rates is by using our mortgage rate comparison tool. The tool will find some of the best mortgage interest rates available for the amount of mortgage you need based on your loan-to-value ratio. However, other factors including your income, outgoings, credit score and borrowing history will affect the mortgage deals that you qualify for. We provide specific guidance around finding the best mortgage deals in our articles, "How to get the best mortgage deal" and "How to remortgage and get the best rate".

To get the best mortgage rate for your specific needs, you should speak with a mortgage broker who, ideally, has access to the whole mortgage market. Mortgage brokers not only have expertise in understanding how to get the best mortgage rates using your information, but they can also access deals that may not be directly available to consumers.

If you don't have your own mortgage broker, you can either source a vetted mortgage professional locally using VouchedFor*. You can also read our article on "How to find a mortgage broker you can trust".

Alternatively, you can get in touch with the online mortgage broker, Habito*, which has a very efficient mortgage search online and in person as well as access to over 90 lenders.

What to do if you’re struggling to pay your mortgage

You should always start by talking to your lender if you begin to struggle to pay your mortgage. There are a number of ways in which your lender could support you but some of the solutions may be more difficult to apply for if you fall into mortgage arrears. Solutions can be as simple as a mortgage payment holiday to allow you some time to get on top of your finances but there are also ways in which your mortgage can be rearranged to reduce the financial burden it is causing. For example, you can extend the term of your mortgage or you can switch your mortgage from a repayment mortgage to an interest-only mortgage. Find out more in our articles, "How to save money on your mortgage" and "7 tips to help deal with mortgage arrears".

 

 

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