Property prices are on the up, but crucially, mortgage rates are heading down. Could this be the perfect moment to take the plunge?

The latest Halifax House Price Index shows house prices jumped by in the year to August – that’s the biggest annual increase since November 2022! The average UK home now costs £292,505, just a whisker away from June 2022’s record-breaking £293,507.

This surge in prices follows a “largely positive summer for the UK housing market,” according to Amanda Bryden, Head of Mortgages at Halifax.

Why the optimism? Bryden points to falling interest rates giving potential buyers more confidence. This is reflected in the number of mortgage approvals, which have now hit a near two-year high.

Adding to the good news, some fixed mortgage rates have dropped even further this week. For example, Halifax slashed its lowest three-year fixed rate for home movers from 4.19% to a tempting 4.02%!

Here’s a rundown of some of the top mortgage deals available this week, but remember, the cheapest rate isn’t always the best option. It’s vital to consider factors like product fees and incentives before you commit.

Best Remortgage Rates This Week

Two-Year Fixed Rate Deals:

• NatWest: 4.25% fixed rate, £1,495 product fee, 60% maximum loan-to-value (LTV). Free valuation and free legal fees included.
• Halifax: 4.25% fixed rate, £999 product fee, 60% maximum LTV. Free valuation, free legal fees and £250 cashback with an EPC rating of 81 or more. Minimum loan amount of £100,000.

Three-Year Fixed Rate Deals:

• Santander: 4.24% fixed rate, £999 product fee, 60% maximum LTV. Choose between £250 cashback or free legal fees. Free valuation up to £1,190 in England, Wales and Northern Ireland, £95 towards valuation in Scotland.

Five-Year Fixed Rate Deals:

• NatWest: 3.92% fixed rate, £1,495 product fee, 60% maximum LTV. Free valuation and free legal fees included.
• NatWest Int Sols: 3.92% fixed rate, £1,495 product fee, 60% maximum LTV. Choose between £250 cashback or free legal fees. Free valuation included.

Best Mortgage Rates for Home Movers This Week

Two-Year Fixed Rate Deals:

• NatWest: 4.07% fixed rate, £1,495 product fee, 60% maximum LTV. Free valuation included.

Three-Year Fixed Rate Deals:

• Halifax: 4.02% fixed rate, £999 product fee, 60% maximum LTV. £250 cashback with an EPC rating of 81 or more. Minimum loan amount of £100,000.

Five-Year Fixed Rate Deals:

• NatWest: 3.71% fixed rate, £1,495 product fee, 60% maximum LTV. Free valuation included.

Best Mortgage Rates for First-Time Buyers This Week

Two-Year Fixed Rate Deals:

• Halifax: 5.13% fixed rate, £999 product fee, 90% maximum LTV. £250 cashback with an EPC rating of 81 or more. Minimum loan amount of £100,000.

Five-Year Fixed Rate Deals:

• Virgin Money: 4.59% fixed rate, £995 product fee, 90% maximum LTV. £300 cashback included.

95% LTV Deals (for those with a 5% deposit):

• The Co-operative Bank/ The Co-operative Bank for Intermediaries: 5.42% fixed for two years or 5.05% fixed for five years. Both come with a £999 product fee, free valuation and £250 cashback.

Don’t forget: These are just a handful of the great deals out there. It’s always a smart move to shop around and compare mortgages to find the right one for your individual circumstances. Speaking to an independent mortgage broker can be a great way to get expert advice.