Despite rising house prices, mortgage rates are falling, offering hope for those looking to step onto the property ladder.

The Halifax House Price Index reported a 0.8% surge in house prices in July, pushing the average UK house price to £291,268. That’s a hefty 2.3% increase compared to last year, marking the most significant jump in 2024 so far.

Don’t despair! This price surge coincides with many lenders slashing their mortgage rates following the Bank of England’s recent base rate cut. This is especially good news for those seeking 95% loan-to-value (LTV) mortgages, as some of the lowest rates have dropped, potentially invigorating the housing market.

Amanda Bryden, Head of Mortgages at Halifax, suggests that “Against the backdrop of lower mortgage rates and potential further Base Rate reductions, we anticipate house prices to continue a modest upward trend throughout the remainder of this year.”

However, she cautions that “affordability constraints and the lack of available properties continue to pose challenges for prospective homeowners”.

Let’s take a look at some of the best mortgage rates available this week. Remember, the lowest rate isn’t always the best deal. Factors like product fees and incentives can significantly impact the overall cost. Speaking to a mortgage broker can provide clarity and help you snag the best deal for your circumstances.

Best Remortgage Rates

Two-Year Fixed Rate:

• NatWest: 4.49% fixed until November 30th, 2026, then reverting to 7.99%. £1,495 product fee, 60% maximum LTV, 7.5% APRC. Includes free valuation and legal fees.
• Alternative – Yorkshire Building Society: 4.79% fixed for two years, 75% maximum LTV. £495 completion fee. Includes free valuation, legal fees, and £250 cashback.

Three-Year Fixed Rate:

• MPowered Mortgages: 4.42% fixed for three years, then reverting to 7.49%. £999 product fee, 60% maximum LTV, 6.9% APRC. Includes free valuation and £256 towards legal fees.
• Alternative – Vernon Building Society: 4.79% fixed for three years, 80% maximum LTV, £499 arrangement fee.

Five-Year Fixed Rate:

• NatWest: 4.14% fixed until November 30th, 2029, then reverting to 7.99%. £1,495 product fee, 60% maximum LTV, 6.5% APRC. Includes free valuation and legal fees.
• Alternative – Principality Building Society: 4.59% fixed for five years, 80% maximum LTV, £1,395 arrangement fee. Includes a free valuation.

Best Mortgage Rates for Home Movers

Two-Year Fixed Rate:

• HSBC & NatWest (Joint Lowest): 4.41% fixed until September 30th, 2026 (HSBC) and November 30th, 2026 (NatWest), then reverting to 6.99% (HSBC) and 7.99% (NatWest). 60% maximum LTV. HSBC charges a £999 booking fee, while NatWest charges £1,495. Both offer a free valuation.
• Alternative – Yorkshire Building Society: 4.84% fixed for two years, 75% maximum LTV. No product fees and includes a free valuation.

Three-Year Fixed Rate:

• MPowered Mortgages: 4.29% fixed for three years, then reverting to 7.49%. £999 product fee, 60% maximum LTV, 6.8% APRC. Includes free valuation.
• Alternative – HSBC: 4.79% fixed for three years, 85% maximum LTV. Includes a free valuation and £350 cashback.

Five-Year Fixed Rate:

• HSBC: 3.95% fixed until September 30th, 2029, then reverting to 6.99%. £999 booking fee, 60% maximum LTV, 5.9% APRC. Includes a free valuation.
• Alternative – TSB: 4.44% fixed for five years, 80% maximum LTV, £995 arrangement fee. Includes a free valuation.

Best Mortgage Rates for First-Time Buyers

Two-Year Fixed Rate (90% LTV):

• Clydesdale Bank: 5.19% fixed until October 31st, 2026, then reverting to 9.24%. £1,499 arrangement fee, 90% maximum LTV, 8.8% APRC.
• Alternative – Virgin Money: 5.47% fixed for two years, no product fees. Includes £300 cashback.

Five-Year Fixed Rate (90% LTV):

• Virgin Money: 4.76% fixed until October 1st, 2029, then reverting to 9.24%. £995 arrangement fee, 90% maximum LTV, 7.4% APRC. Includes £300 cashback.
• Alternative – HSBC: 4.86% fixed for five years, includes a free valuation and £350 cashback. £999 booking fee.

Two-Year Fixed Rate (95% LTV):

• Monmouthshire Building Society: 5.45% fixed for two years, then reverting to 8.49%. £1,149 product fee, 95% maximum LTV, 8.2% APRC.
• Alternative – Nationwide Building Society: 5.79% fixed for two years, no product fees. Offers £250 cashback for properties with an EPC rating between 86-91, or £500 for those with a 92+ rating. Includes a free valuation.

Five-Year Fixed Rate (95% LTV):

• Monmouthshire Building Society & Skipton Building Society: Both offer 5.15% fixed for five years. Monmouthshire BS reverts to 8.49% and has a £1,149 product fee, while Skipton BS charges a £1,295 completion fee and includes a free valuation.
• Alternative – The Co-operative Bank: 5.21% fixed for five years, £999 arrangement fee. Includes a free valuation and £250 cashback.

This is just a glimpse of what’s out there! It’s always recommended to shop around and compare different mortgage deals. Don’t hesitate to seek advice from a qualified mortgage broker to secure the best rate and terms for your unique circumstances. Happy house hunting!