Best Mortgage Rates This Week, as Election Looms

Nervous buyers are holding back, but mortgage rates are dropping. Is now the time to make your move?

The latest figures from the Bank of England show that getting a mortgage is still a challenge for many, with the number of people getting mortgages approved for house purchases dropping slightly from 60,800 in April to 60,000 in May.

This drop could be down to people finding it hard to afford mortgage repayments with the cost of living still high, but experts say it’s also normal to see a dip in activity as summer approaches.

The big question on everyone’s lips is – what impact will the upcoming General Election have on the housing market? Experts and first-time buyers alike are waiting with bated breath to see what policies the new government will introduce.

But there’s good news for those ready to take the plunge – mortgage rates are actually falling! Several lenders have slashed their fixed rates this week in a bid to attract buyers.

Here’s our round-up of some of the best deals on the market right now:

Best Remortgage Rates

NatWest: Bagged the cheapest two-year fix at 4.71%, fixed until 31st October 2026. After that, it jumps to 8.24%. You’ll need to stump up a £1,495 booking fee, and you can borrow up to 60% of your property’s value. On the plus side, they’ll throw in a free valuation and free legal fees.
MPowered Mortgages: Offering the most competitive three-year fix at 4.48%, fixed for three years before rising to 7.74%. You’re looking at a £999 arrangement fee, and again, you can borrow up to 60% of your property’s value. They sweeten the deal with a free valuation and £256 towards your legal fees.
NatWest: Back on top for the cheapest five-year fix, again at 4.26%, fixed until 31st October 2029 before soaring to 8.24%. The booking fee is a hefty £1,495, and you can borrow up to 60% of your property’s value. Just like their two-year deal, you’ll get a free valuation and free legal fees.

Best Mortgage Rates for Home Movers

Halifax: Snagged the cheapest two-year fix at 4.63%, fixed until 30th November 2026 before shooting up to 8.74%. The arrangement fee is £999, and you can borrow up to 60% of your new home’s value. Bonus – if you’re buying an energy-efficient home with an Energy Performance Certificate (EPC) rating of 81 or higher, they’ll give you £250 cashback.
MPowered Mortgages: Offering the best three-year fix at 4.55%, fixed for three years before climbing to 7.74%. The arrangement fee is £999, and you can borrow up to 60% of your new property’s value. Plus, they’ll chuck in a free valuation.
Barclays: Clinched the best five-year fix at 4.23%, fixed until 30th September 2029 before rising to 8.74%. You’ll pay an £899 arrangement fee, and you can borrow up to 60% of your new home’s value. They’ll also treat you to a free valuation.

Best Mortgage Rates for First-Time Buyers

Clydesdale Bank: Nabbed the cheapest two-year fix for those with a 10% deposit at 5.19%, fixed until 31st October 2026 before jumping to 9.49%. The arrangement fee is a hefty £1,499, and you can borrow up to 90% of the property’s value.
Barclays: Scored the top spot for the cheapest five-year fix for buyers with a 10% deposit at 4.85%, fixed until 30th September 2029 before increasing to 8.74%. The arrangement fee is £999, you can borrow up to 90% of the property’s value, and they’ll give you a free valuation.
Halifax: Offering the best two-year fix for first-timers with a 5% deposit at 5.55%, fixed until 30th November 2026 before going up to 8.74%. The arrangement fee is £999, and they’ll give you £250 cashback if you’re buying an energy-efficient property with an EPC rating of 81 or higher.
Monmouthshire Building Society: Providing the most competitive five-year fix for those with a 5% deposit at 5.20%, fixed for five years before rising to 8.49%. The arrangement fee is £1,149, and you can borrow up to 95% of your new home’s value.

Remember: These are just a handful of the great deals available right now. Before you sign on the dotted line, always shop around to find the best mortgage for your individual circumstances. An independent mortgage broker can help you compare deals and find the right one for you.