As some of the best mortgage rates start creeping up, we look at what’s happening with the best mortgage rates in the UK. Read on for the best mortgage rates currently available, best remortgaging deals, best 5 year fixed rate, Buy To Let mortgage deals, green mortgage deals and more.
We’ve seen mortgage rates falling in recent weeks however, some lenders have started pulling their best deals and increasing mortgage rates amid predictions that the Bank of England will cut interest rates more slowly than had previously been expected. Read more in our guide on mortgage rate predictions.
However, it’s not all bad news: fixed rate mortgages are still available at under 4%. But when it comes to mortgages, no one knows how long deals will be available for and what will happen next with rates.
So it’s more important than ever to shop around for the best mortgage deal. If you’re remortgaging, you can do this up to 6 months in advance – and you should certainly do it by 3 months before your current deal ends.
If you’re a first time buyer, the chances are you’ll want to look for mortgage products better suited to you. Read our Best first time buyers mortgage rates guide – we bring you the best current mortgage rates in the UK whatever your deposit size, from 0% to 40%.
The best mortgage rates often depend on your LTV (loan to value ratio). The size of your mortgage in relation to the value of the property you’re buying or remortgaging.
Best 2 year fixed rate mortgage
First Direct’s 2 year fixed rate mortgage at 3.84% (Max LTV 60%, fees £490). Purchases only.
First Direct’s 2 year fixed rate mortgage at 3.89% (Max LTV 60%, fees £490). For remortgages.
With 2 year fixed rate mortgages, the best mortgage rates have nudged up after recent lows. For example, in May 2025, Santander offered a 2 year fix at 3.80% for purchases (fee £999) and 3.82% for remortgages (fee £1,058).
However, when you’re looking for the best mortgage deal you’ll need to factor in any fees when you’re working out which is the best deal overall. A fee-free broker can do this for you
Best 3 year fixed rate mortgage
M Powered Mortgages’ 3 year fixed rate mortgage at 3.82%. (Max LTV 60%, fees £1,058). Remortgages only.
M Powered Mortgages’ 3 year fixed rate mortgage at 3.88% (Max LTV 60%, fees £999). For purchases.
However, it’s an improving picture for 3 year fixed rate mortgages. By comparison, the best rates on a 3 year fixed rate mortgage last month were from M Powered Mortgages at 3.88% for remortgages and Nationwide at 3.94% for remortgages.
Best 5 year fixed rate mortgage
Barclays’ Green Home 5 year fixed rate mortgage at 3.89% (Max LTV 60%, fee £899). You’ll need to meet its green mortgage criteria to be eligible for this rate. Purchases only.
First Direct’s 5 year fixed rate mortgage at 3.84% (Max LTV 60%, scheme fees £490). Remortgages only.
First Direct’s 5 year fixed rate mortgage at 3.90% (Max LTV 60%, scheme fees £490). Purchases only.
The best rates on 5 year fixed rate mortgages have also nudged up compared to last month when Barclays’ Green Home 5 year fixed rate mortgage was the lowest rate on offer for those eligible, although at a lower rate of 3.79%. While Santander offered a 5 year fixed rate mortgage at 3.83%.
Best 10 year fixed rate mortgage
Nationwide’s 10 year fixed rate mortgage at 4.39%. Scheme fees £999. Max LTV 60%. Purchases only
Nationwide’s 10 year fixed rate mortgage at 4.49%. Scheme fees: £999. Max LTV 60%. For remortgages
The best rates on 10 year fixed rate mortgages remain the same this month.
Best variable rate mortgages
Newbury Building Society 4.29% (2.11% discount for 3 years) Scheme fees £850. Max LTV 75%
Furness Building Society 4.29% (3.95% discount for 2 years) Scheme fees £1,019. Max LTV 80%.
The best mortgage rates on a variable rate mortgage is the same as last month. But bear in mind, the rate you’ll pay on a variable rate mortgage can go up or down.
Best Buy to Let mortgages
Fixed: West One 1.69% 2 year fix. Max LTV 55%. Scheme fees 9.99%.
Variable: HSBC 4.52% (Base +0.27% for 2 years) Max LTV 60%. Fees £1,999. Purchases only.
Variable: Accord Mortgages 4.59% (Base +0.34% for 2 years) Max LTV 60%. Fees £1,745.
With Buy to Let mortgage rates, the best rate on fixed rate mortgages is the same as last month. But bear in mind West One charges huge scheme fees so make sure you get advice from a fee-free broker to find the best deal overall.
The best rates on variable Buy to let mortgage rates are down slightly this month. However, bear in mind that the rate you’ll pay on a variable rate mortgage can go up or down.
If you’ve got savings, could you use them to offset the amount of interest you pay on your mortgage? Here are the best offset mortgage rates available this month:
NatWest’s 5 year fixed rate offset mortgage at 3.95% (max LTV 60%, fee £1,554, remortgage only)
Barclays’ 5 year fixed rate offset mortgage at 3.99% (max LTV 60%, fee £899, purchase only)
Newbury Building Society’s variable rate offset mortgage at 4.19% 2.11% discount for 3 years. (Max LTV 75%, fees £850)
Best Green Mortgages
If you’ve looked into and then dismissed green mortgages in the past, you may want to take another look. We’ve seen green mortgages become more competitive in recent years, often offering the best mortgage rates on the market to those who qualify for them. And we expect this direction of travel to continue.
Here are some of this month’s best green mortgages:
Barclays offers a 5 year fixed rate mortgage at 3.89%. Max LTV 60%, fees £899, free basic valuation. This is available for those buying a new build property directly from the builder or developer that has an Energy Efficiency rating of 81 or above, or has an Energy Performance Certificate (EPC) rating of A or B.
HSBC offers a 2 year fixed rate mortgage at 3.99%, available for remortgages up to 60% LTV. The deal, which has a £999 product fee and has free valuation and legal fees, also comes with £500 cashback. It’s available where the property has an EPC rating of A or B.
Compare mortgage rates
Mortgages for on a property valued at
How to check if you’re on the best mortgage rate
The easiest way to do this is to use L&C’s Rate Check service – this free service has saved customers nearly £27 million this year to date. Plus, L&C are fee-free, unlike many brokers which charge fees that can amount to thousands of pounds. So you may save even more. When you’re considering your remortgage options, while the mortgage rates is obviously a key factor, when you’re looking at the best mortgage rates remember to look at the whole picture including any mortgage fees. But don’t worry, a fee-free mortgage broker will do the calculations for you to find the best mortgage deals available.
Should I remortgage now?
Yes. If your current mortgage deal ends in the next 6 months, and certainly if it ends in the next 3 months, you should start the remortgage process now to secure a rate. You can then use L&C’s Rate Check service to keep the rate under review in case a better rate comes up before you need to switch.
Being ready with your next move before your current deal comes to an end also means you’ll avoid your mortgage rolling onto your lender’s Standard Variable Rate which are averaging an eye-watering 7.60%. Read our guide Should I remortgage now?
Mortgage rates may go down further in 2025, given that markets are currently pricing in one more interest rates cut this year. But it’s very difficult to make an accurate mortgage rate forecast as this depends on numerous factors.
And even if this prediction is correct and mortgage rates end the year lower than they started, there’s no guarantee rates go down in a uniform fashion over the year. Mortgage rates may creep up further as we’ve seen at the start of June 2025 before then going down.
What’s the average mortgage interest rates?
On 31 May 2025, the average 2 year fixed mortgage rate at 60% LTV was 3.97%, while the average 5 year fixed mortgage rate at 60% LTV was 4.02%, according to figures from Rightmove.
How much is the average standard variable rate?
The average standard variable rate in June 2025 is 7.60%. The standard variable rate is the default rate you’ll roll onto when your mortgage deal ends. But SVRs vary widely by lender. For example Newcastle Building Society’s SVR is currently 6.75% while Aldermore’s SVR is 9.03%. Read more in our guide Should you ditch your Standard Variable Rate mortgage?
So while the best mortgage rates on offer this month may seem high compared to what has been available in recent years, your lender’s Standard Variable Rate (SVR) could be significantly higher.
If your current mortgage deal ends in the next six months you should act now to find the best mortgage deal. When it comes to finding the best mortgage rates this month, here’s our advice:
Shop around: Whether you’re remortgaging or buying a house, don’t just go to your bank for your mortgage. It’s more important than ever to shop around for the best mortgage rates. Speaking to a fee-free mortgage broker is the quickest and easiest way to find the lowest mortgage rates.
Act now: The best rates could disappear. But if you secure a remortgage deal several months in advance you’ll have that in the bag while keeping your eye out for other offers before your remortgage date. Speak to a fee-free broker today to explore your options.
Beware of the SVR: However, if you’re on your lender’s standard variable rate, check your deal now to see if you can save by remortgaging as average mortgage interest rates on SVRs have soared over the last few years.
Most trackers track the Bank of England base rate. So an increase to the base rate means your monthly mortgage payments will increase. And if the base rate decreases, so will your mortgage payments.
Discount rate mortgages
Your rate is a discount on the lender’s own standard variable rate (SVR). If the base rate changes, your lender can decide whether to pass on any or all of the increase/ decrease.
Fixed rate mortgage
Nothing. You will only see a change in your repayments when your fixed term ends.
Standard variable rate
Your lender sets the amount you pay. If the base rate changes the lender can decide whether to pass on any or all of the increase/ decrease. These mortgages can be extremely expensive.
What are mortgage rates?
Mortgage rates are the rate of interest charged by a mortgage lender (bank or building society). The interest is charged by the lender as compensation for the money they have lent them in order to purchase a property.
Interest rates are determined by the lender in most cases, and can be either fixed (ie remain the same for the term of the mortgage) or variable (where they fluctuate with a benchmark interest rate). Before you compare mortgages, you need to understand the different types. For more information see what type of mortgage should I get?
Help finding the best mortgage deals
The best mortgage deals are not only about the best mortgage rates, you need to consider whether the mortgage term is right for you, arrangement fees and more.
To get a better idea of the best mortgage for you and the cheapest mortgage rates in the UK, use the online mortgage service provided by fee-free mortgage brokers L&C.
L&C can find the best mortgage rates for you over the phone, or you can do it yourself in real-time online. Whichever you choose they can help search the market to find you the best mortgage deals available, see if you qualify and even help you apply online, doing all the legwork to get you your mortgage offer.
Handy tools and calculators
Here’s a selection of practical gadgets and tools to help keep things simple.
It’s possible to get a mortgage without a deposit, these are called 100% mortgages. But by saving a deposit of at least 5% and ideally at least 10% you’ll have access to more lenders and usually better mortgage rates too.
While the best mortgage rates are usually reserved for people with a deposit of at least 40%. This may be a cash deposit if you’re buying your first home or this could be equity in your home if you’re remortgaging.
Example of how different deposit amounts affect mortgage rates
Here’s how much you’d pay each month if you took out a £200,000 mortgage over 30 years, comparing the best rate on a 2 year fix if you have a 40% deposit in June 2025 to the best rate on a 2 year fix if have a 10% deposit.
Deposit amount
Best mortgage rate
Monthly mortgage payment
40%
3.84%
£936
10%
4.44%
£1,006
However, these examples only take into account the mortgage rate, not any fees you may pay like arrangement fees. To get a better understanding of the overall costs, speak to a mortgage broker who will crunch the numbers for you.
A mortgage application usually takes two to four weeks to process. However, factors including how busy the lender is, how straightforward your circumstances are and how quickly you respond to any requests can influence how long it takes for a mortgage to be approved. Find more information in our guide How long does it take to get a mortgage?
Will I pay more for my mortgage in 2025
If you’re remortgaging in 2025, whether or not you’ll pay more on your new mortgage depends on the rate you’re paying on your current mortgage deal. If you’re coming off a cheap fix in 2025, it’s likely that you’ll pay more when you remortgage this year. But if you don’t remortgage and end up rolling onto your lender’s standard variable rate you could end up paying significantly more.
However, if your current mortgage deal is ending soon and you took it out when mortgage rates were higher than they are now, it’s likely that you’ll be able to save by remortgaging.
Should I only look at the best mortgage rates?
When you’re looking for the best mortgage deal, there’s more to consider than just the best mortgage rates. You’ll also need to factor in any mortgage fees like arrangement fees to make sure you get the best deal overall. But you don’t need to work this out yourself, a fee-free mortgage broker will crunch the numbers for you and find you the best mortgage deal for you.
Frequently Asked Questions
Are five year fixed rate mortgages a good idea?
Unless you’re likely to need to move within the next few years, a five-year deal can make good sense because you’ll have certainty over your payments for the next five years. But it could mean you miss out on better deals in the next few years. It’s a good idea to chat through your options with a fee-free mortgage broker – they’ll explain the best mortgage rates available too.
What is a good mortgage rate?
On 31 May 2025, the current average mortgage interest rate on a 2 year fixed rate mortgage at 60% LTV was 3.97%. In comparison, the best rate on a 2 year fixed rate mortgage in June 2025 is First Direct’s 2 year fix at 3.84% (Max LTV 60%, fee £490, purchases only).
Fixed or variable mortgage – which is best?
If you’re looking at the current best mortgage rates in the UK, choosing between a fixed and variable deal such as a tracker mortgage can be a tough decision when interest rates are expected to fall. Read our guide on Understanding mortgage types and what one you need.
Is my fixed rate mortgage coming to an end?
To check when your current fixed rate mortgage finishes, you’ll need to read the Terms and Conditions or contact your lender. Say, for example, you took out a two year fix two years ago, your current deal could be due to end soon. Unless you want to go onto your lender’s standard variable rate, you will need to remortgage to a new deal. Some lenders will allow you to lock into a new offer between three and six months before your current deal ends. So make a note to start looking at the best mortgage rates available to you well in advance.
I’m selling: How do I find the best estate agent?
Choosing the right estate agent is vital. Make the right choice and you may sell faster, at a higher price and for a lower fee. To help you do this, we’ve designed the Best Estate Agent Finder tool. It allows you to compare fees, the average time to sell a property like yours, how often they achieve the asking price and how successful they are at selling similar homes. And you should probably take a look at the online agent route as well which includes firms like Purplebricks who say they can sell your house for less commission than the high street. Check out our online estate agent comparison table.
Can you apply for a mortgage before finding a house?
You can’t make a full mortgage application until you’ve had an offer accepted on a house but you can get a ‘mortgage in principle‘ before finding a house. In fact, it will demonstrate to estate agent’s you’re a serious buyer.
The good news is, with our partners at L&C, you can get a personalised Decision in Principle in just a matter of minutes. And unlike some other lenders, it won’t impact your credit score. There’s no obligation to proceed with the deal they find you, but it gives you a good indication of how much you can borrow.
How much is my house worth?
When you remortgage the lender carries out a mortgage valuation. But how do you know that paper based survey is accurate? It’s a good idea to also get your own online instant house valuation for free, and then if you’ve had work done to your home an estate agents valuation too. See how to value my property before remortgaging for more information.
See the deals you qualify for and how much you could borrow
HomeOwners Alliance Ltd is registered in England, company number 07861605. Information provided on HomeOwners Alliance is not intended as a recommendation or financial advice. Mortgage service provided by London & Country Mortgages (L&C), Unit 26 (2.06), Newark Works, 2 Foundry Lane, Bath BA2 3GZ, authorised and regulated by the Financial Conduct Authority (FRN: 143002). The FCA does not regulate most Buy to Let mortgages. Your home or property may be repossessed if you do not keep up repayments on your mortgage. If you complete on a mortgage through L&C, L&C will be paid a commission by the chosen lender. L&C will share a percentage of this commission with HomeOwners Alliance, the referring third party. The commission L&C receives doesn’t affect the product or rate recommended to you.
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