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Best mortgage rates – March 2024


After falling for many months, mortgage rates on fixed deals are rising again. We look at what the future might hold for mortgage rates and why it’s vital to seek out 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.

Finding the best mortgage rates in a sea of mortgage deals is hard work. So every month we’ll be showcasing the best mortgage deals for you, with input from the mortgage experts at L&C.

Best mortgage rates March 2024

The price war we started 2024 with which saw lenders slashing mortgage rates is over, with the best fixed rate mortgages increasing across the board this month. Lenders including HSBC UK, Santander, NatWest and Nationwide have all announced mortgage rate increases in recent weeks, as the prospect fades of imminent Bank of England interest rate cuts.

When mortgage rates are volatile it’s even more important than ever to shop around for the best mortgage deal before your current mortgage deal ends. Noone knows what will happen in coming weeks and months, so act fast when you find the deal you want to avoid the risk of missing out.

If your current mortgage deal expires in the next 6 months, start looking now. You can apply for a mortgage now to lock in a rate then keep it under review with L&C’s Rate Check service to make sure you don’t miss out on a better mortgage rate before you need to switch.

It also means you’ll avoid your current deal rolling onto your lender’s Standard Variable Rate which are averaging 8.17% but some are much higher. For example Aldermore’s SVR is currently a staggering 9.73%.

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%.

Remortgage Finder

Get fee-free remortgage advice from our partners at L&C. Use the online remortgage finder or speak to an advisor today.

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Best 2 year fixed rate mortgage

The best mortgage rates on 2 year fixed rate mortgages have jumped up this month. By comparison, last month the best mortgage rate on a 2 year fix was 4.15% for remortgages and 4.17% for purchases, both from Halifax.

Best 3 year fixed rate mortgage

While if you’re looking for a 3 year fix, it’s a similar story. The best 3 year fixed rate mortgages this month are up compared to last month when the best mortgage rate on a 3 year fixed rate mortgage was from Santander at 4.20% for purchases and from Bank of Ireland at 4.34% for remortgages.

Best 5 year fixed rate mortgage

The best 5 year fixed rate mortgages this month are back over the 4% mark. Last month, the best rate on a 5 year fixed rate mortgage was from Nationwide at 3.88%.

Best 10 year fixed rate mortgage

The best 10 year fixed rate mortgages are also up this month. By comparison, the best 10 year fixed mortgage rate available last month was 3.99% from First Direct and HSBC UK.

Best variable rate mortgages

If you’re looking for the best mortgage rates on a variable rate mortgage, the best rate this month is the same as last month. However, unlike with the best fixed rate mortgages, the rate you pay on variable rate deals can go up or down.

Best Buy to Let mortgages rates

With Buy to Let mortgage rates, the best rate for fixed deals is also up this month compared to the best rate available last month which was also from The Mortgage Works but at 3.54%. The best variable rate Buy to Let mortgage rate is the same as last month.

For more information on your options in the face of rising interest rates, read our guide on the Best Buy to Let mortgage ratesBuy to Let mortgages explained and Remortgaging your Buy to Let.

Best Green Mortgage rates

Looking at Green mortgages? NatWest has a 5 year fixed rate at 4.30% for remortgages available for properties with an EPC rating of A or B. It’s available to up to 60% LTV and has a £995 arrangement fee. It also comes with a free valuation and free basic legal work.

Are you looking to remortgage?

These may be the best UK mortgage rates currently available but no one knows how long these best mortgage rates will be available for. So act now. And if you’ve already started the remortgage process, make sure you’re getting the best mortgage deal available. The easiest way to do this is to use L&C’s Rate Check service or by speaking directly to a fee-free broker who has the expertise to search the market for you to find the best fixed mortgage rates and best variable rate mortgages too.

The best mortgage rates are changing fast. For the latest deals and fee-free mortgage advice speak to our partners at L&C. Start online or give them a call today about your mortgage needs

When will UK mortgage rates come down?

It’s very difficult to make an accurate mortgage rate forecast as this will depend on numerous factors. However, financial markets are currently predicting the first cut in interest rates will be in July 2024. As a general rule: if interest rates fall, the mortgage rate forecast would be for mortgage rates to fall too. But time will tell if this happens.

What’s happening with average mortgage interest rates?

On 28 February 2024, the average 2 year fixed mortgage rate at 60% LTV was 4.62%, while the average 5 year fixed mortgage rate at 60% LTV was 4.30%, according to figures from Rightmove.

How much is the average standard variable rate?

When your mortgage deals ends you’ll roll onto your lender’s default rate – the standard variable rate. And while the best mortgage rates on offer this month may seem high (which they are) your lender’s Standard Variable Rate (SVR) could be significantly higher.

But it’s important to note that SVRs vary widely by lender. For example Newcastle Building Society’s SVR is currently 6.94% while Aldermore’s SVR is 9.73%. And the average SVR in February 2024 was 8.17%. Read more in our guide Should you ditch your Standard Variable Rate mortgage?

Looking for the cheapest mortgage rates? Speak to fee-free brokers L&C — start the process online or speak to an advisor today.

How to find the best mortgage deal

If your current mortgage deal ends in the next six months you should act now to find the best mortgage deal because the best mortgage rates could disappear quickly.

When it comes to finding the best mortgage rates this month, here’s our advice:

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Your home or property may be repossessed if you do not keep up the repayments on your mortgage.

Representative example: Representative example: A mortgage of £195,890 payable over 23 years, initially on a fixed rate until 31/12/25 at 5.69% and then on a variable rate of 6.99% for the remaining 21 years would require 26 payments of £1,274.15 followed by 250 payments of £1,417.33. The total amount payable would be £388,459 made up of the loan amount plus interest (£191,570) and fees (£999). The overall cost for comparison is 6.7% APRC representative..

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. 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 fees. But don’t worry, a fee-free mortgage broker will do the calculations for you to find the best mortgage deals available.

Mortgage Finder

Get fee free mortgage advice from our partners at L&C. Use the online mortgage finder or speak to an advisor today.

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If the base rate increases, how does it affect my mortgage?

This depends on what type of mortgage you have. If you’re on a tracker mortgage, an increase to the base rate means your monthly mortgage payments will increase as well. While if you’re on a Standard Variable Rate your lender decides how much, if any, of the increase they would pass on. But if you’re on a fixed rate mortgage you will only see a change in your repayments when your fixed term ends.

Is now a good time to remortgage?

If your current mortgage deal ends in the next six months, you should start the remortgage process now and keep it under review.

If you’re on your lender’s Standard Variable Rate, locking into a fixed rate not only means you will have certainty over how much you’ll be paying on your mortgage each month but you may also find your repayments drop too. Or if you don’t want to fix, you may prefer remortgaging onto a variable rate deal.

So speak to a broker who can find you the best mortgage rates and talk you through your options.

Remortgage Finder

Get fee-free remortgage advice from our partners at L&C. Use the online remortgage finder or speak to an advisor today.

Find a mortgage

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 our online mortgage service provided by the fee-free mortgage broker 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.

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? 

So what is a good mortgage rate this month? On 28 February 2024, the current average mortgage interest rate on 2 fixed rate mortgage at 60% LTV was 4.62%. The best rate on a 2 year fixed rate mortgage in March 2024 is the same if you’re remortgaging. But for purchases, the best fixed rate mortgage available this month is at 4.39% from Barclays.

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 can be a tough decision. 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.

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