Expert VerifiedTop 10 Best Fixed Mortgage Rates for 2025: Find the Lowest Mortgage Deals
- Last Updated: 05 Aug 2025
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Be aware. Equity release comes with drawbacks which are important to think about. Lifetime mortgages are secured loans. Compound interest means the amount you owe can grow quickly. Equity release reduces your estate's value and may impact means-tested benefits.Key Takeaways...
- For UK seniors, top mortgage picks vary by situation, with Nationwide, HSBC, and Santander often leading the way; however, it is important to remember that rates shift with the market tide and lender rules, so there is a need to stay alert.
- Are you getting the best fixed mortgage rates? Dive into research, use comparison tools, assess fees and additional costs, and consider discussing with an expert for best mortgage deals that fit your circumstances.
- Expect a premium on top rates as lenders factor in the extra risk with these loans.
- Look for loans that give room for flexibility—overpayment options or payment holidays can save you in the long run.
Buying a house is a big decision. That is why finding the best equity release rates is so important.
There are so many financing options out there.
How does equity release interest work, and which is the right one for you?
In This Article, You Will Discover:
We hope this guide to what the top lenders are offering will help you...
What Are Mortgage Rates, and What Is a Good Mortgage Rate in the UK?
Mortgage rates in the UK are the interest charged on a loan for purchasing property, determined by the Bank of England's base rate, lender policies, and market conditions.
What Exactly Are Mortgage Rates?
Mortgage rates are the interest charged on a loan used to purchase a property.
These rates significantly impact your monthly payments and overall loan cost.
Understanding these rates can help grasp how lenders determine what to repay.
It is not just about borrowing, but managing the cost over time.
Learn more: Lifetime Mortgage Interest Rates
How Are Mortgage Rates Determined in the UK?
Mortgage rates in the UK are determined by several factors, including the Bank of England's base rate, which lenders use as a benchmark for pricing their own products.
Additionally, lenders consider their cost of acquiring funds, whether from savers or other financial markets, and the level of competition within the mortgage industry.
Economic conditions, such as inflation and housing market trends, also play a significant role in determining the rates you may be offered.
What Is Considered a Good Mortgage Rate in 2025?
A good mortgage rate in 2025 typically falls between 4% and 5%, depending on the type of mortgage and your financial circumstances.
Rates have been higher due to economic changes, so if you're offered something below this range, you're likely getting a competitive deal. Always consider the overall cost, including fees and early repayment charges, not just the advertised rate.
It's essential to compare deals from different lenders and check the terms carefully. Sometimes, a slightly higher rate with fewer fees could work out better in the long run. Always calculate the total cost of the mortgage before committing.
How to Find the Lowest Mortgage Rates in the UK
Finding the lowest mortgage rates often means comparing deals from a range of lenders, including high street banks and smaller building societies. Interest rates fluctuate, so it's important to keep an eye on the market or use a mortgage broker who can help secure the best rates for you.
Lenders also offer promotional deals, such as reduced rates for a fixed period, so it’s worth investigating these. Additionally, your credit score and deposit size will affect the rates you're offered.
If you have a high credit rating and can provide a larger deposit, you're more likely to qualify for lower rates. Always check the small print, as some deals may have hidden fees that can offset the benefit of a low rate.
What Are the Differences Between Fixed, Variable, and Tracker Mortgage Rates?
Fixed mortgage rates stay the same throughout the term, variable rates can change with the lender's interest rate, and tracker rates follow the Bank of England's base rate; understanding these differences is crucial to choosing a mortgage that fits your financial plan.
Fixed-rate mortgages lock in your interest rate for a set period, providing stability and predictability in your repayments.
Variable rates, on the other hand, can change at the lender's discretion, meaning your monthly payments could go up or down.
Tracker rates are a type of variable rate that follows the Bank of England's base rate plus a set margin; if the base rate rises or falls, your rate will too, directly affect your repayments.
Which UK Mortgage Rates Are Most Favourable for Seniors Over 55?
For seniors over 55 in the UK, fixed-rate mortgages are often the most favourable, offering stability and predictability in payments during retirement, but seeking advice from a financial adviser is advisable to ensure a choice that best fits your circumstances.
Navigating the UK mortgage landscape for seniors over 55 can be challenging, but thorough research has revealed attractive options.
Nationwide Building Society's Later Life Mortgage emerges as a strong contender, offering competitive rates starting at 2.94% for a two-year fixed term.
Legal & General's Lifetime Mortgage is another option, with fixed interest rates beginning at 3.36%.
Moreover, lenders like Halifax and Leeds Building Society are broadening their age limits and presenting appealing rates.
It is important to recognise that the most suitable mortgage rate varies based on numerous factors, such as your financial condition, the value of your property, and the length of the mortgage term.
How Can You Find the Best Fixed Mortgage Rates in the UK?
To identify the best fixed-term mortgage rates in the UK, compare offers from multiple lenders, consult financial comparison websites, and consider advice from mortgage advisers.
What Are the Top 3 Fixed Mortgage Rates for a 2-Year Term?
The top three fixed mortgage rates for a two-year fixed term are from BM Solutions, Barclays, and Halifax; each is not solely dependent on the current interest but also on factors such as the size of your deposit, the value of the property, and your credit record.
Remember...
Interest rates can change from month to month.
So the rates stated below are just a guide and may have changed when you apply for your two-year fixed-rate mortgage.
1. BM Solutions: Offering Competitive 2-Year Fixed Mortgage Rates
The average two-year fixed-rate mortgage offered by BM Solutions1 is 4.28%.
2. Barclays: Top 2-Year Fixed Mortgage Rate Options
Barclays2 is offering an average two-year fixed rate of 4.39%.
3. Halifax: Leading 2-Year Fixed Mortgage Rates
High-street lender, Halifax3 has an interest rate average of 4.54% for a two-year fixed mortgage.
Which Are the Top 3 Best 5-Year Fixed Mortgage Rates?
The three leading five-year fixed mortgage rates are from Virgin Money, HSBC, and Nationwide.
According to Forbes Adviser4, a five-year fixed-rate mortgage gives you a comfortable buffer against the vagaries of fluctuating interest rates.
Their opinion is that the top three lenders in this mortgage category are as follows:
1. Virgin Money: Competitive 5-Year Fixed Mortgage Rates
Virgin Money5 offers an average interest rate of 4.08% on a five-year fixed mortgage loan.
2. HSBC: Top Choices for 5-Year Fixed Mortgage Rates
Another lender that does well in this market is HSBC6, which averages a 4.17% interest rate on a five-year fixed mortgage.
3. Nationwide: Premier 5-Year Fixed Mortgage Rate Offers
Nationwide7 came in third, with an average of 4.21% on a fixed-rate term for five years.
What Are the Top 3 10-Year Fixed Mortgage Rates Currently?
The top three, ten-year fixed mortgage rates are the same lenders featured in the ten-year fixed mortgage, according to Forbes8.
See them below:
1. HSBC: Leading 10-Year Fixed Mortgage Rate Options
HSBC9 offers an average of 3.99% on a ten-year fixed-rate mortgage.
2. Virgin Money: Top 10-Year Fixed Mortgage Rates
Virgin Money10 has also been offering an average of 3.99% for a ten-year fixed term recently.
3. Nationwide: Competitive 10-Year Fixed Mortgage Rates
The average interest rate of a ten-year fixed mortgage offered by Nationwide11 is 4.34%.
Best Mortgage Rates in Scotland for 2025
Mortgage rates in Scotland are generally similar to those in the rest of the UK, but some lenders offer region-specific deals. If you’re looking to buy property in Scotland, consider consulting a broker who specialises in the Scottish market.
Rates for 2025 are expected to be competitive, but your eligibility will depend on factors such as your deposit and credit score.
Scottish homebuyers may also benefit from specific government schemes or incentives, so it's worth checking what’s available. Always review the terms and conditions of any deal to make sure it’s suitable for your circumstances.
Best Tracker Mortgage Rates For 2025
Tracker mortgages follow the Bank of England base rate, meaning your interest rate can rise or fall depending on economic conditions. This type of mortgage can offer attractive rates, particularly when interest rates are low.
However, you need to be prepared for fluctuations and consider how rate changes might affect your monthly payments.
If you prefer flexibility and can manage potential increases, tracker mortgages could be a good option for 2025.
Compare offers from different lenders, as some will cap how much your tracker mortgage rate can rise, giving you a bit of security alongside the benefits of the best tracker mortgage rates deal.
How Do Standard Variable-Rate and Tracker Mortgages Compare in the Current Market?
In the current market, standard variable-rate mortgages fluctuate with the lender's rate, while tracker mortgages directly follow the Bank of England's base rate changes.
Which 3 Lenders Offer the Best Standard Variable-Rate Mortgages?
The three lenders that offer the best standard variable-rate mortgages include First Direct, NatWest, and Santander.
A standard variable rate (SVR) mortgage is your lender’s default interest rate, which you will pay when your short-term deal ends.
Lenders set their own standard variable mortgage rate, which may or may not be aligned with the Bank of England base rate12.
The interest rate for an SVR is generally higher than for other types of mortgages.
Here is more on the best recent standard variable rates on offer at the moment:
1. First Direct: Best Standard Variable Mortgage Rates
First Direct13 is currently offering an SVR interest rate of 5.54%, which is below the industry average.
2. NatWest: Leading Standard Variable Mortgage Rate Options
The SVR interest rate offered by NatWest14 is currently 6.24%.
3. Santander: Top Standard Variable Mortgage Rates
Only slightly higher, the Santander15 rate on an SVR is 6.25%.
What Are the Top 3 Tracker Mortgage Rates Available?
The top three tracker mortgage rates available are those from Nationwide, NatWest, and Platform.
A tracker mortgage refers to a type of mortgage that tracks or follows the performance of the Bank of England base rate.
Here are the lenders that are currently offering the best tracker mortgage rate calculated on a 90% loan-to-value for a two-year term.
Read More: Nationwide Mortgage Rates
1. Nationwide: Premier Tracker Mortgage Rates
Nationwide16 offers an interest rate of 4.94% on a two-year tracker mortgage.
2. NatWest: Best Tracker Mortgage Rate Options
NatWest17 has a two-year tracker rate of 4.99%
3. Platform: Leading Tracker Mortgage Rates
The lender with the third-best two-year tracker mortgage is Platform with a 5.24% rate.
What Steps and Considerations Are Crucial in Finding the Best Fixed Mortgage Deals?
Finding the best fixed mortgage deal involves assessing your financial situation, researching the market for various mortgage types, and consulting with a financial adviser for tailored advice.
How Can Comparing Mortgage Rates Online Help You Find the Best Fixed Mortgage Deals?
Comparing mortgage rates online can help you find the best mortgage deals by surveying the landscape of available best mortgage deals without committing to any one lender from the outset.
Online comparison tools allow you to input your borrowing needs and personal circumstances to find rates that you are likely to be eligible for.
This process can help you narrow down your options quickly and identify lenders offering competitive rates, saving you time and potentially a significant amount of money over the term of your mortgage.
Always ensure you are using reputable comparison sites to get the most accurate and up-to-date information.
How Does Your Credit Score Affect the Mortgage Rates You Are Offered?
Your credit score significantly impacts the mortgage rates offered to you, with a higher credit score signalling to lenders that you are a lower-risk borrower, which can lead to more favourable interest rates.
Conversely, if your credit history has some blemishes, lenders may view you as a higher risk, offering higher rates to offset this perceived risk.
It is vital to check your credit score and understand your credit report before applying for a mortgage to ensure you are in the best possible position.
How to Get the Best Fixed Mortgage Rates UK: Steps and Tips
To secure the best fixed mortgage rates, start by checking your credit report and improving your credit score where possible.
Shop around and compare rates from different lenders, including looking beyond the headline rates to understand any additional fees or charges.
Consider employing the services of a mortgage broker who can offer insight into best mortgage deals that are not directly available to the public and can negotiate on your behalf.
Lastly, timing can also affect rates, so keep an eye on market trends and be ready to act when rates are favourable.
Where Can You Find More Information and Assistance on UK Mortgage Rates?
For more information and assistance on UK mortgage rates, consult financial advisers, explore comparison websites, and contact banks and building societies directly.
What Criteria Were Used to Determine the Best Fixed Mortgage Rates UK?
To determine the best fixed mortgage rates in the UK, we undertook a comprehensive evaluation process with an approach that was focused on finding mortgage options that offer a balance of cost-effectiveness, flexibility, and reliable lender support.
Key aspects of our analysis included assessing interest rates to ensure they are competitively low, scrutinising associated fees for overall value, and considering the lender's reputation for financial stability and customer service.
Additionally...
We paid close attention to product features like overpayment flexibility and the terms and conditions that impact borrowers in the long-term.
Customer reviews and regulatory compliance with the Financial Conduct Authority (FCA) also played a crucial role in our assessment.
This approach helped us pinpoint the UK's best fixed mortgage rates, striking the right balance between affordability, top service, and flexible product options to perfectly match borrowers' needs.
Which Are the 3 Best Discounted Mortgage Rates?
The three best discounted mortgage rates include those from Furness Building Society, Penrith Building Society, and Scottish Building Society.
A discounted mortgage is a variable rate type of mortgage locked in for a fixed period.
It will still go up and down according to the market, but at a lower rate than the lender’s SVR.
The list below is based on a two-year fixed period where the buyer has a 10% deposit (90% loan-to-value).
1. Furness Building Society: Top Discounted Mortgage Rates
Furness Building Society19 offers a rate of 4.38% on a two-year discounted mortgage.
2. Penrith Building Society: Competitive Discounted Mortgage Rates
The rate on a two-year discounted mortgage offered by Penrith Building Society20 is 4.49%.
3. Scottish Building Society: Leading Discounted Mortgage Rate Offers
The Scottish Building Society21 rate on a discounted mortgage for a term of two years is 4.54%.
Your Questions About UK Mortgage Rates Answered
Yes, you can have two mortgages at once.
It would obviously be up to your lenders to decide if you can afford more than one mortgage.
A second mortgage would be considered if you are buying a holiday home, an investment property or a home for your children.
There are financial regulations associated with a second mortgage.
You will need to declare to your mortgage provider which of the properties would be your primary residence.
Yes, you can have two mortgages on the same property.
This is called a second charge mortgage.
The maximum you can borrow is limited by the equity, or the amount you have already repaid, from your property.
A second charge mortgage is usually taken for home improvements or major repairs.
Depending on the amount you need and what you need it for, there may be better options to raise capital than a second charge mortgage.
Yes, you can and must negotiate your mortgage interest rate.
What you can do:
- Shop around and compare what different lenders have to offer.
- Remember to factor in all fees and duties related to your mortgage before comparing lenders.
- Using a mortgage broker will give you access to more deals.
- Know what you can do to improve your chances of a good deal, such as having a good credit score.
Who has the best mortgage interest rates depends on your needs.
Factors that may influence your interest rate are:
- Your credit score.
- Whether you are taking a fixed or variable-rate mortgage.
- The length of your deal.
- The size of deposit you can place.
The mortgage rate you may get as a first-time buyer depends on the size of your deposit and how much you can borrow.
The mortgage lender will conduct an affordability review and a credit check by comparing your annual income, your debt and your other outgoings, such as utility bills.
The lender will also do a stress test to see if you can manage sudden spikes in interest rates and still make your repayments.
Once you have established how much you can borrow, you can decide what you can afford to buy.
The mortgage rate you may get when you re-mortgage depends what the current interest rate is at the time you re-mortgage.
You can safeguard against future increases by locking in a deal up to six months before your current deal ends.
Another smart move is to engage a mortgage broker, who can secure a better mortgage rate for you.
Mortgage rates are likely to go down in 2025, judging by the trend22 in the market so far this year.
The increases in the Bank of England base rate since the mini budget in September have driven up borrowing rates.
Combined with the cost of living crisis in the UK, this has put buying a property beyond the pockets of many people.
This has resulted in financial institutions dropping their mortgage interest rates to attract more business.
The best UK mortgage rates for seniors depend on various factors such as the type of equity release product, loan-to-value ratio, and the borrower’s age and health.
It is recommended to compare rates from different lenders and consult with a qualified equity release advisor to find the most suitable rates for your specific circumstances.
To find the best UK mortgage rates, it is advisable to conduct thorough research and compare rates offered by different lenders.
You can use online comparison tools, consult with independent financial advisors, or check with your existing mortgage provider to explore the available options.
It is important to consider not only the interest rates but also any associated fees and repayment terms to make an informed decision.
Several lenders in the UK offer competitive mortgage rates for equity release.
Some of the prominent names in the market include Aviva, Legal & General, Just, and Hodge Lifetime.
However, the availability of the best rates may vary based on individual circumstances.
It is recommended to work with an independent equity release advisor who can assess your specific needs and help you identify the lenders offering the most favourable rates for your equity release plan.
The best UK mortgage rates for equity release are not constant and can change over time.
They are influenced by various factors such as the Bank of England’s base rate, market conditions, and the lender’s offerings.
It is important to stay updated with the latest market trends and consult with an equity release advisor to ensure you are aware of any changes in the rates that may affect your equity release plan.
Concluding Thoughts on the Best Mortgage Rates UK
Given the constantly shifting financial landscape that affects interest rates, it is very difficult to pin down the concept of the best mortgage rates.
Instead, you should be looking for the best mortgage rates for you and your needs.
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