Where to Find the Best Mortgage Rates in the UK

Looking for the Best Mortgage Rates in the UK? Compare Fixed Rates and Variable Rates to Find the Best Deal for Your Mortgage or Remortgage. Find Out More Here…
  • Last Updated: 07 Feb 2024
  • Fact Checked
  • Our team recently fact checked this article for accuracy. However, things do change, so please do your own research.

Contributors:

Francis Hui

Key Takeaways

  • Explore top mortgage rates in the UK, categorized by fixed terms, variable rates, and specific lenders for informed and advantageous home financing.
  • For a 2-year fixed mortgage, consider BM Solutions, Barclays, and Halifax for competitive rates.
  • Opt for a 5-year fixed mortgage with attractive rates from Virgin Money, HSBC, and Nationwide.
  • Secure a 10-year fixed mortgage with favourable terms offered by HSBC, Virgin Money, and Nationwide.
  • Find the best rates for a standard variable-rate mortgage with First Direct, NatWest, and Santander providing competitive options.

Buying a house is a big, big decision. That’s 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?

    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 helps us grasp how lenders determine what we pay back.

    It's not just about borrowing, but managing the cost over time.

    3 Best Mortgage Rates for a 2-Year Fixed Mortgage

    The best rates for a 2-year fixed mortgage aren’t 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 2-year fixed rate mortgage.

    1. BM Solutions

    The average 2-year fixed-rate mortgage offered by BM Solutions1 is 4.28%.

    2. Barclays

    Barclays2 is offering an average 2-year fixed rate of 4.39%.

    3. Halifax

    High-street lender, Halifax3 has an interest rate average of 4.54% for a 2-year fixed mortgage.

    3 Best Mortgage Rates for a 5-Year Fixed Mortgage

    According to Forbes Advisor4, a 5-year fixed-rate mortgage gives you a comfortable buffer against the vagaries of fluctuating interest rates.

    They reckon the top three lenders in this mortgage category include:

    1. Virgin Money

    Virgin Money5 offers an average interest rate of 4.08% on a 5-year fixed mortgage loan.

    2. HSBC

    Another lender that does well in this market is HSBC6, which averages a 4.17% interest rate on a 5-year fixed mortgage.

    3. Nationwide

    Nationwide7 came in third, with an average of 4.21% on a fixed-rate term for 5 years.

    3 Best Mortgage Rates for a 10-Year Fixed Mortgage

    The same 3 lenders feature in the 10-year fixed mortgage, according to Forbes8.

    1. HSBC

    HSBC9 offers an average of 3.99% on a 10-year fixed-rate mortgage.

    2. Virgin Money

    Virgin Money10 has also been offering an average of 3.99% for a 10-year fixed term recently.

    3. Nationwide

    The average interest rate of a 10-year fixed mortgage offered by Nationwide11 is 4.34%.

    3 Best Mortgage Rates for a Standard Variable-Rate Mortgage

    A standard variable-rate (SVR) mortgage is your lender’s default interest rate which you’ll 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 the other types of mortgages.

    Here are the some of best recent standard variable rates on offer at the moment.

    1. First Direct

    First Direct13 is currently offering an SVR interest rate of 5.54%, which is below the industry average. 

    2. NatWest

    The SVR interest rate offered by NatWest14 is currently 6.24%.

    3. Santander

    Only slightly higher, the Santander15 rate on an SVR is 6.25%.

    3 Best Mortgage Rates for a Tracker Mortgage

    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 2-year term.

    1. Nationwide

    Nationwide16 offers an interest rate of 4.94% on a 2-year tracker mortgage.

    2. NatWest

    NatWest17 has a 2-year tracker rate of 4.99%

    3. Platform

    The lender with the third-best 2-year tracker mortgage is Platform with a 5.24% rate.

    3 Best Mortgage Rates for a Discounted Mortgage

    A discounted mortgage is a variable rate type mortgage locked in for a fixed period.

    It’ll 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 2-year fixed period where the buyer has a 10% deposit (90% loan-to-value).

    1. Furness Building Society

    Furness Building Society19 offers a rate of 4.38% on a 2-year discounted mortgage.

    2. Penrith Building Society

    The rate on a 2-year discounted mortgage offered by Penrith Building Society20 is 4.49%.

    3. Scottish Building Society

    The Scottish Building Society21 rate on a discounted mortgage for a term of 2 years is 4.54%.

    Common Questions

    Can I Have 2 Mortgages at Once?

    Can I Have 2 Mortgages on the Same Property?

    Can I Negotiate My Mortgage Interest Rate?

    Who’s Got the Best Mortgage Interest Rates?

    What Mortgage Rate Will I Get as a First-Time Buyer?

    What Mortgage Rate Will I Get When I Remortgage?

    Will Mortgage Rates Go Down in 2023?

    In Conclusion

    Given the constantly shifting financial landscape that affects interest rates, it’s very difficult to pin down the concept of best mortgage rates.

    Instead, you should be looking for the best mortgage rates for you and your needs.

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