The best UK residential mortgage rates this week

Last updated: 1 May 2024 at 15:00

House prices fall month-on-month as major lenders increase rates.

After several of the biggest mortgage lenders raised rates last week, this week has seen even more follow suit. Nationwide, Santander and NatWest are just some of the major lenders to increase rates across a selection of their deals, and these recent changes have caused many of the leading mortgage rates to rise.

This news comes as house prices fell by 0.4% between March and April, according to data from Nationwide. It found that the annual rate of house price growth slowed to just 0.6% in April, compared to 1.6% in March, with the average home now costing £261,962.

“The slowdown likely reflects ongoing affordability pressures, with longer-term interest rates rising in recent months, reversing the steep fall seen around the turn of the year,” commented Robert Gardner, Nationwide's Chief Economist.

“House prices are now around 4% below the all-time highs recorded in the summer of 2022, after taking account of seasonal effects,” he continued.

If you’ve decided now is the right time to move home, remortgage or join the property ladder, we provide more information on some of the lowest mortgage rates currently available. However, as the lowest rate may not always be the most effective choice for your needs and circumstances, we’ve also offered some alternative deals which feature on our Moneyfacts Best Buy chart based on their overall true cost.

Otherwise, for a complete overview of the mortgage market, visit our charts.

The best remortgage rates

As many lenders have recently raised rates, it’s not surprising to see all the leading remortgage rates increase from last week.

Cumberland BS now offers the lowest rate for two-year fixed remortgage deals at 4.78%. Available across Great Britain, this deal can finance a maximum loan-to-value (LTV) of 60% and charges a £999 arrangement fee. As incentives, Cumberland BS offers a free valuation for properties valued up to £750,000, as well as free legal fees.

Alternatively, Loughborough BS offers a two-year fix for remortgage borrowers in England and Wales that can finance up to 80% LTV. Charging a higher rate of 4.99% and a lower fee of £499, this deal offers a free valuation and features as a Moneyfacts Best Buy.

The leading rate on three-year fixed remortgage deals inched higher this week, with MPowered Mortgages now offering the lowest rate at 4.59%. It can finance up to 60% of your property’s value and charges a £999 arrangement fee. Borrowers in England and Wales can apply for this deal, which offers a free valuation and free legal fees as incentives.

If you need to finance a larger LTV, Vernon BS continues to offer a Moneyfacts Best Buy deal with a maximum LTV of 80%. It charges a rate of 4.69% and a £499 arrangement fee, but it’s worth noting that this deal doesn’t offer any extra incentives to borrowers. It is available in England and Wales.

NatWest continues to offer the lowest rate for five-year fixed remortgage deals, despite increasing some of its rates this week. Now charging a higher rate of 4.32%, this deal charges a sizeable booking fee of £1,495 and can finance up to 60% LTV. Borrowers can benefit from a free valuation and free legal fees as extra incentives.

For a deal with a smaller fee and a larger LTV, Newbury BS offers a Moneyfacts Best Buy deal at 4.49%. Available in England and Wales, it can finance up to 75% of your property’s value and charges an arrangement fee of £850. It also offers a free valuation and free legal fees as extra perks.

The best mortgage rates for homemovers

The lowest two-year fixed mortgage rate for homemovers increased again this week, with Clydesdale Bank now offering the lowest rate at 4.72%. Available to borrowers in Great Britain via intermediaries, this deal can finance up to 75% LTV. However, borrowers should note that this deal charges a sizeable arrangement fee of £1,499 and doesn’t offer any extra incentives.

If you need a deal with a higher maximum LTV, first direct offers a two-year fixed deal for homemovers that can finance up to 85% of your new property’s value. It charges a rate of 5.08% and a £490 arrangement fee, and offers a free valuation as an incentive. As a result, this deal features as a Moneyfacts Best Buy.

Santander continues to offer the lowest rate for three-year fixed homemover mortgages, despite charging a higher rate of 4.67%. This week it is joined by a deal from MPowered Mortgages that charges the same rate. Both providers can finance up to 60% LTV, charge a £999 arrangement fee and offer a free valuation as an incentive.

The Santander deal is available in Great Britain and Northern Ireland while the MPowered Mortgages deal is only available in England and Wales.

Alternatively, The Co-operative Bank offers a Moneyfacts Best Buy deal at a slightly higher rate of 4.68%. It can also finance up to 60% LTV, charges a £999 arrangement fee and offers a free valuation, but borrowers can also benefit from an extra perk of £250 cashback. It is available to homemovers in Great Britain.

The leading five-year fixed mortgage rates for homemovers bucked the trend seen across most mortgage products as the lowest rate has dropped from last week. Santander offers the deal with the lowest rate of 4.35%, which features as a Moneyfacts Best Buy. With a maximum LTV of 60%, it charges a £999 arrangement fee and comes with a free valuation.

If you need to finance a larger proportion of your property purchase, Cumberland BS offers a Moneyfacts Best Buy deal with a maximum LTV of 85% at a rate of 4.58%. Available in Great Britain (excluding London and the south-east of England), this deal charges a £999 arrangement fee and offers a free valuation on properties worth up to £750,000.

The best first-time buyer mortgages

Clydesdale Bank now offers the lowest two- and five-year fixed rate for first-time buyers with a 10% deposit at 5.19% and 4.64% respectively. Both deals are available in Great Britain via intermediaries, but borrowers should note that they charge a sizeable arrangement fee of £1,499 and don’t offer any extra incentives.

If you’d prefer a two-year deal without any product fees, Coventry BS offers a two-year fix to first-time buyers in Great Britain that can finance up to 90% LTV at 5.48%. As well as no fees, this deal also comes with a free valuation and £500 cashback.

For a longer fix, first direct offers a five-year deal at 4.88% that doesn’t charge any product fees. It also offers a free valuation as an incentive and is available in Great Britain and Northern Ireland.

If you have a smaller 5% deposit, the lowest two-year fix with a maximum LTV of 95% comes from Hanley Economic BS this week. It charges a rate of 5.49% and first-time buyers will be pleased to note that it doesn’t charge any product fees. It also offers a free valuation on properties worth up to £250,000, and up to £310 towards valuation costs on properties valued over this amount. Taken as a whole, this deal features as a Moneyfacts Best Buy.

HSBC also offers a Moneyfacts Best Buy deal at 5.79% for first-time buyers with a 5% deposit. This deal doesn’t charge any product fees and offers a free valuation and £750 cashback as extra perks.

Family Building Society continues to offer the lowest five-year fix for first-time buyers with a 5% deposit. Charging 4.89%, this deal is a family mortgage, which means first-time buyers need a family member who is willing to use their own savings or property as security. It charges a completion fee of £599 and is available across England and Wales (excluding the Scilly Isles). Borrowers can benefit from a free valuation for properties worth up to £500,000 and £250 cashback as incentives.

First-time buyers looking to minimise their upfront costs could consider a five-year fix from Virgin Money. With a maximum LTV of 95%, this deal charges a rate of 5.26% but doesn’t charge any additional product fees. Furthermore, first-time buyers can also receive £300 cashback that could be useful to cover some of the many costs involved in getting on the property ladder.