With the Bank of England cutting interest rates for the second time this year, what does this mean for 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.
The Bank of England has cut interest rates for the second time this year, from 5% to 4.75%. However, and rather confusingly, mortgage rates may increase in the short term.
Ahead of the Bank’s announcement, experts had warned that despite the widely-predicted cut in interest rates, the cost of fixed rate mortgages could rise in the aftermath of October’s budget because of the expectation that interest rates will remain higher for longer pushing up costs to lenders. Skipton Building Society and Coventry Building Society have both announced fixed rate increases.
While the medium-term direction of interest rates is still expected to be down, we can expect a period now when more lenders may have to rethink their rates.
So the key message this month is: shop around for the best mortgage deal and act fast. You can do this up to 6 months in advance – and you should certainly do it by 3 months before your current deal ends. You can apply for a mortgage and 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. Get in touch online or on the phone today to kick things off.
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%.
Get fee-free remortgage advice from our partners at L&C. Use the online remortgage finder or speak to an advisor today.
The best mortgage rates on 2 year fixed rate mortgages are down this month for remortgages compared to last month when the best rate was from Coventry Building Society at 4.08%. But the best mortgage rate on 2 year fixed deals for purchases is up slightly; the best mortgage rate for purchases last month was also from Coventry Building Society but at 3.89%.
The best mortgage rates have nudged up this month for a 3 year fix for both purchases and remortgages. Last month, Coventry Building Society offered a 3 year fixed rate mortgage at 3.79% for purchases and 3.98% for remortgages.
While for 5 year fixed rate mortgages, the best rate this month is lower than last month for remortgages when NatWest offered a 5 year fixed rate mortgage at 3.82%. But the best mortgage rate for purchases this month is slightly higher than last month when Coventry Building Society offered a rate at 3.69%.
The best rates on 10 year fixed rate mortgages have improved slightly compared to last month when Nationwide offered a 10 year fixed rate mortgage at 4.72% for remortgages and 4.54% for purchases.
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. Although you must remember that the rate you pay on variable rate deals can go up or down, unlike fixed rate mortgages.
With Buy to Let mortgage rates, the best rate on a fixed rate mortgage is the same this 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. While the best rate for a variable rate deal is also 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 rates, Buy to Let mortgages explained and Remortgaging your Buy to Let.
Looking for a green mortgage? HSBC offers a 2 year fixed rate green mortgage at 4.16%, it’s available up to 85% LTV and comes with a £999 fee, free standard valuation and £1,600 cashback. It’s available for purchases, where the property has an Energy Performance Certificate (EPC) rating of A or B
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. With experts warning the best UK mortgage rates could disappear with very little notice, you should act now so you don’t miss out. 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 7.99%. Read our guide Should I remortgage now?
It’s very difficult to make an accurate mortgage rate forecast as this will depend on numerous factors. As a general rule: if interest rates fall, the mortgage rate forecast would be for mortgage rates to fall too. But despite seeing interest rates being cut this month, experts are warning that fixed mortgage rates may increase.
However, looking further ahead, as experts predict interest rates will continue to be cut next year, we would expect mortgage rates to come down.
On 7 November 2024, the average 2 year fixed mortgage rate at 60% LTV was 4.10%, while the average 5 year fixed mortgage rate at 60% LTV was 4.02%, according to figures from Rightmove.
The average standard variable rate in November 2024 was 7.99%. 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 6.94% while Aldermore’s SVR is 9.53%. 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 because the best mortgage rates could disappear quickly.
When it comes to finding the best mortgage rates this month, here’s our advice:
Take a look at today’s best rates from lenders and get an overview of mortgage options now
provided by L&C
| Provider | Rate (ARPC) | Type |
|---|---|---|
 | 3.98% (7.0%) | Fixed to 31/07/27 |
| 4.07% (7.0%) | Fixed to 31/07/27 |
 | 4.09% (6.4%) | Fixed to 02/08/27 |
 | 4.13% (6.6%) | Fixed for 2 years |
| 4.13% (7.0%) | Fixed to 31/07/27 |
provided by L&C
| Provider | Rate (ARPC) | Type |
|---|---|---|
 | 1.69% (8.8%) | Fixed for 2 years |
| 1.79% (8.8%) | Fixed for 2 years |
 | 2.67% (8.4%) | Fixed for 2 years |
| 2.81% (8.4%) | Fixed for 2 years |
| 2.93% (8.4%) | Fixed for 2 years |
Your home or property may be repossessed if you do not keep up the repayments on your mortgage.
A mortgage of £225,134 payable over 24 years, initially on a fixed rate until 30/09/26 at 4.88% and then on a variable rate of 6.99% for the remaining 22 years would require 26 payments of £1328.29 followed by 262 payments of £1,593.54. The total amount payable would be £453,042 made up of the loan amount plus interest (£226,909) and fees (£999). The overall cost for comparison is 6.8% APRC representative.
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 fees. But don’t worry, a fee-free mortgage broker will do the calculations for you to find the best mortgage deals available.
Get fee free mortgage advice from our partners at L&C. Use the online mortgage finder or speak to an advisor today.
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.
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?
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.
Here’s a selection of practical gadgets and tools to help keep things simple.
It’s possible to get a mortgage without a deposit, for example Skipton Building Society offers 100% mortgages for people with a proven ‘track record’ of paying their rent. 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.
For example, in November 2024, the best mortgage rate if you’re taking out a 2 year fix and you’ve got a 40% deposit is Santander’s 2 year fixed rate at 3.96%. (Scheme fees: £999). Purchases only). On a £200,000 mortgage over 25 years, you’d pay around £1,051 a month for the first two years.
While if you have a 10% deposit, the best mortgage rate available this month on a 2 year fix is from Virgin Money at 4.85% (scheme fees £995, purchase only). On a £200,000 mortgage over 25 years, you’d pay around £1,152 a month for the first two years.
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?
If you’re coming off a cheap fixed rate mortgage then it’s likely that you will be more on a mortgage in 2024. But you should still shop around to find the best mortgage rates. If you don’t and end up rolling onto your lender’s standard variable rate you could end up paying significantly more.
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 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.
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.
On 24 October 2024, the current average mortgage interest rate on 2 fixed rate mortgage at 60% LTV was 4.24%. In comparison, the best rate on a 2 year fixed rate mortgage in November 2024 for purchases is 3.99% from NatWest.
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.
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.
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.
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.
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.
