Finding the UK’s Cheapest Mortgage Rates Right Now – July 2025

If you’re hunting for the cheapest mortgage rates right now in the UK, you’re not alone. With house prices still high and the cost of living squeezing many households, finding a good mortgage deal has never been more important. Whether you’re buying your first home, moving house or looking to remortgage, getting the lowest possible rate can save you thousands over the life of your loan.
This guide covers the current rates, what affects them, and how to get the cheapest mortgage rate for your situation.

Current Cheapest Mortgage Rates in the UK – July 2025

As of July 2025, interest rates have started to come down slightly after several hikes in recent years. Lenders are gradually responding with more competitive deals – but rates can still vary a lot between providers.

Here’s a look at the lowest mortgage rates currently available (these are indicative and may vary depending on your circumstances):

• 2-Year Fixed Rate – From around 4.29%
• 5-Year Fixed Rate – Starting at roughly 4.15%
• Tracker Mortgages – From as low as 3.99%, usually linked to the Bank of England base rate

Some lenders offer headline-grabbing low rates but add on hefty arrangement fees or require a big deposit. So, while the rate matters, the overall cost of the mortgage is what counts most.

How to Get the Cheapest Mortgage Rates

Here are some practical steps you can take to secure the cheapest mortgage deal right now in the UK:

1. Improve Your Credit Score

Lenders reward reliability. A clean credit file shows that you’re low-risk, which can unlock access to better rates.

• Register on the electoral roll
• Pay all bills on time
• Avoid high credit card balances
• Check your credit report for errors (use Experian, Equifax, or TransUnion)

2. Put Down a Larger Deposit

The more equity or deposit you have, the lower your loan-to-value (LTV) ratio – and lenders typically offer their best rates at 60% LTV or lower.

• 5% deposit = higher rate
• 10–15% = better, but still pricey
• 25% or more = access to some of the cheapest rates

3. Use a Whole-of-Market Mortgage Broker

A mortgage broker who works across the whole market can often access deals that aren’t available directly to customers. Some lenders only work through brokers.

• Ask about exclusive or semi-exclusive deals
• Make sure they’re FCA-regulated
• They can also help package your application for approval

4. Choose the Right Type of Mortgage

Think about your needs:

• Fixed rate – good for budgeting, protects against future rate rises
• Tracker – may be cheaper upfront, but riskier if rates go up
• Discounted variable – lower initial cost, but can change anytime

Sometimes, the cheapest deal is not always the best fit for your lifestyle or income pattern.

5. Check the Total Cost – Not Just the Rate

Look at:

• Arrangement fees
• Valuation charges
• Early repayment penalties
• Incentives (e.g. cashback or free legal fees)

A deal with a slightly higher interest rate but no fees might work out cheaper over the term.

6. Act Quickly

Mortgage deals don’t last long, especially the cheapest ones. Once you’ve found a rate that suits you, it’s worth getting an Agreement in Principle (AIP) to lock it in while you finalise your plans.

What Affects How Cheap Your Mortgage Rate Is?

Even if a lender advertises a rock-bottom rate, you might not qualify if you don’t meet their criteria. These are the main factors that affect what rate you’ll be offered:

• Deposit size / equity – Lower LTV = better rate
• Credit history – Clean and stable is key
• Employment type and income – Lenders prefer steady, provable income
• Loan amount and term – Smaller loans can attract higher fees
• Type of property – New-builds and flats above commercial premises may be risk-rated

Best Places to Look for the Cheapest Mortgage Deals

To find the most competitive rates, try:

• Online mortgage comparison sites – Use them to get a ballpark idea
• Directly with banks and building societies – Some have exclusive direct-only offers
• Independent mortgage brokers – Best option for accessing full market deals
• Your own bank – May offer loyalty discounts if you already bank with them

Remember to double-check any quote to see if it includes all fees and whether the rate is fixed or variable.

Should You Fix or Go Variable in 2025?

It’s the big question. With the base rate stabilising and possibly falling in the next year or so, some homeowners are tempted by tracker mortgages to benefit from any reductions.

But if you prefer stability, fixed-rate deals (especially 5-year fixes) remain a solid choice. Many buyers now split their mortgage – fixing part and tracking part – to hedge their bets.
Speak to a broker or advisor if you’re unsure which route suits your situation.

Don’t Just Chase the Headline Rate

While it’s tempting to go straight for the deal with the lowest interest rate, always look at the bigger picture. A mortgage is one of the biggest financial commitments you’ll ever make. A slightly higher rate with no fees or early repayment charges could work out cheaper in the long run.

If you’re looking for the cheapest mortgage rates right now, stay flexible, keep comparing, and don’t be afraid to ask for help. A good broker can make a real difference, especially in a competitive market like this.

With careful preparation, smart comparisons, and possibly a bit of help from a broker, you can secure a mortgage deal that fits your finances without overpaying.

Whether you’re a first-time buyer or remortgaging for a better deal, the UK mortgage market in 2025 offers a mix of opportunities, and being informed puts you one step ahead.

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