Updated!
Top Five Lowest Mortgage Rate Deals
In most cases, businesses have to select a fixed-priced contract for at least one year. After that, longer terms are available with a price premium, with the option of variable pricing introduced shortly.
| Lender | Loan Type | Rate | Then | Fees |
|---|---|---|---|---|
|
2 year fixed | 3.66% | 6.74% | £995 |
|
2 year fixed | 3.70% | 6.49% | £490 |
|
2 year fixed | 3.70% | 5.74% | £999 |
|
|
5 year fixed | 3.80% | 5.74% | £999 |
|
10 year fixed | 4.39% | 6.49% | £999 |
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Rates may vary depending on your Loan to Value (LTV), income, property valuation and age. Quotes are for a £210,000 mortgage for a £375,000 property and correct at 7th January 2026 inclusive of any fees. Prices may vary depending on your circumstances. Our independent financial advisors compare all products for you, so you don’t have to.
Guide to Mortgaging
There are two types of home loans available for remortgaging or new home buying. The first is a simple repayment plan where you pay a portion of the loan off each month with interest. At the end of the lending period you have no outstanding balance.
An interest-only loan is where you only pay the interest incurred each month. You never repay the original loan which remains outstanding in full. These types of products are slowly being withdrawn from the market.
You can always see how much these are going to cost you by using one of the many calculators online.
Types of Mortgages
There are many deals for new borrowers or to remortgage an existing debt that typically fall into the following categories:
Variable-rate mortgages
The interest rate you pay varies in line with the Bank of England base rate. There’s usually a minimum interest amount payable. These mortgages last for the term of your loan.
Fixed-rate mortgages
Receive a discounted fixed introductory rate for a certain period of between 2 and 5 years subject to status. At the end of this period, you’ll pay the lender’s variable rate.
Offset mortgages
These can be on fixed or variable, with the loan offset against current or savings accounts. These mortgages could reduce the loan length, but check the terms are competitive.
Current Interest Rate Terms
Here are the current rates on offer in the marketplace today for standard variable rate (SVR) products:
| Bank of England (BOE) base rate | 3.75% |
| Halifax Homeowner Variable Rate | 7.24% |
| Nationwide Standard Mortgage Rate | 6.49% |
| HSBC/ First Direct SVR | 6.49% |
| Barclays SVR (via the Woolwich) | 5.74% |
| Santander Follow on Rate (FoR) | 7.00% |
| Natwest Standard Variable Rate | 6.74% |
Data correct as of 7th January 2026.
BOE last rate changed on 18th December 2025.
Bank of England Base Rate History
The BOE base rate affects most mortgage rates. The history below covers the years 2015 to 2026.
Today you may need a higher deposit than in recent years, with most of the best buys in the market lower than the SVRs quoted above.
Other Information
Sources of Standard Variable Rate data:
- Halifax standard variable rate
- Nationwide standard mortgage rate
- HSBC mortgage rates
- Barclays standard variable rate
- Santander Follow on Rate
- Natwest mortgage rates
- Moneyfacts remortgages
The Financial Conduct Authority regulates the mortgage market lenders and specialist brokers in the UK. They also provide excellent advice and guidance on financial arrangements.
To find out how much you have to pay each month, check out our new mortgage repayment calculator now! You’ll see your total loan repayments each month and how much interest you pay over the lifetime of the mortgage.
Other Costs to Consider When Buying a Property
Although a mortgage is likely to be the largest expense during property ownership, there are other costs involved when completing on the acquisition. These may include:
Conveyancing and legal fees from a solicitor. A whole array of costs can mount up including funds transfers, Land Registry, local searches and your legal company’s time.
Valuation and survey costs to ascertain the risk to your lender and yourself. Older properties may require a full structural survey to understand issues such as subsidence or damp.
Stamp Duty Land Tax (SDLT) can add tens of thousands to your transaction. See how much you may pay by using this stamp duty calculator.
Removal and moving costs usually carried out by a removal company to move furniture to a new dwelling.