Best mortgage rates

Here's a list of the best mortgage rates each of the mainstream lenders currently offers.

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Stuart Bowman

4-minute read

Last updated: August 18th 2020

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To help you get a good initial idea, we've pulled together all the best mortgage rates that the mainstream lenders are currently offering.

We've used the example of:

  • a £150,000 mortgage loan
  • to purchase a £200,000 standard property
  • over a 25-year term

Bear in mind these rates can change at any point - but we'll update this table every month. Also, note that these are headline rates.

What does that mean? 

It means these best rates are just a guide. There's no guarantee the lender will offer you this rate, that depends on your eligibility and affordability, and even if you can get these rates, there's every chance they aren't the 'best' overal deal for you.

We'll explain why that may not be the case in a minute, but first here are the rates:

Best mortgage rates: 2-year fixed

It's important to remember all these mortgage rates will depend on your personal circumstances and these are examples only.

HSBC mortgage logo

Initial rate: 1.24%

Initial period: 27 months

Initial monthly payments: £585.63

After the initial period this deal reverts to HSBC's Standard Variable Rate of 3.54% with monthly payments of £743.42.

APRC: 3.3%

Fees: £1,016.00

True cost: £218,782.67 (for the 25-year term)

HSBC mortgage logo

Initial rate: 1.79%

Initial period: 24 months

Initial monthly payments: £624.77

After the initial period this deal reverts to Nationwide's Standard Variable Rate of 3.59% with monthly payments of £752.61.

APRC: 3.4%

Fees: £1,084.00

True cost: £222,779.84 (for the 25-year term)

HSBC mortgage logo

Initial rate: 1.70%

Initial period: 26 months

Initial monthly payments: £618.18

After the initial period this deal reverts to Virgin's Standard Variable Rate of 4.34% with monthly payments of £807.81.

APRC: 3.8%

Fees: £1,025.00

True cost: £237,442.62 (for the 25-year term)

HSBC mortgage logo

Initial rate: 1.44%

Initial period: 27 months

Initial monthly payments: £599.64

After the initial period this deal reverts to TSB's Standard Variable Rate of 3.59% with monthly payments of £748.58.

APRC: 3.3%

Fees: £995.00

True cost: £220,552.62 (for the 25-year term)

HSBC mortgage logo

Initial rate: 1.25%

Initial period: 27 months

Initial monthly payments: £586.31

After the initial period this deal reverts to NatWest's Standard Variable Rate of 3.59% with monthly payments of £747.15.

APRC: 3.8%

Fees: £1,273.00

True cost: £219,830.32 (for the 25-year term)

HSBC mortgage logo

Initial rate: 1.69%

Initial period: 26 months

Initial monthly payments: £617.47

After the initial period this deal reverts to Santander's Standard Variable Rate of 3.35% with monthly payments of £733.21.

APRC: 3.1%

Fees: £1,259.00

True cost: £217,213.76 (for the 25-year term)

HSBC mortgage logo

Initial rate: 1.85%

Initial period: 26 months

Initial monthly payments: £624.88

After the initial period this deal reverts to Barclays Standard Variable Rate of 3.59% with monthly payments of £747.06.

APRC: 3.9%

Fees: £115.00

True cost: £221,056.32 (for the 25-year term)

These rate examples were updated in August 2020.

Best mortgage rates: 5-year fixed

It's important to remember all these mortgage rates will depend on your personal circumstances and these are examples only.

HSBC mortgage logo

Initial rate: 1.46%

Initial period: 63 months

Initial monthly payments: £603.06

After the initial period this deal reverts to HSBC's Standard Variable Rate of 3.54% with monthly payments of £728.57.

APRC: 2.9%

Fees: £1,516.00

True cost: £210,680.87 (for the 25-year term)

HSBC mortgage logo

Initial rate: 1.89%

Initial period: 60 months

Initial monthly payments: £632.04

After the initial period this deal reverts to Nationwide's Standard Variable Rate of 3.59% with monthly payments of £737.96.

APRC: 3.0%

Fees: £1,084.00

True cost: £215,097.80 (for the 25-year term)

HSBC mortgage logo

Initial rate: 1.69%

Initial period: 62 months

Initial monthly payments: £617.46

After the initial period this deal reverts to Virgin's Standard Variable Rate of 4.34% with monthly payments of £782.85.

APRC: 3.2%

Fees: £1,025.00

True cost: £224,630.82 (for the 25-year term)

HSBC mortgage logo

Initial rate: 1.79%

Initial period: 63 months

Initial monthly payments: £624.67

After the initial period this deal reverts to TSB's Standard Variable Rate of 3.59% with monthly payments of £734.90.

APRC: 3.0%

Fees: £995.00

True cost: £213,525.51 (for the 25-year term)

HSBC mortgage logo

Initial rate: 1.60%

Initial period: 64 months

Initial monthly payments: £611.00

After the initial period this deal reverts to NatWest's Standard Variable Rate of 3.59% with monthly payments of £731.20.

APRC: 3.3%

Fees: £1,273.00

True cost: £211,8695.20 (for the 25-year term)

HSBC mortgage logo

Initial rate: 1.79%

Initial period: 62 months

Initial monthly payments: £624.69

After the initial period this deal reverts to Santander's Standard Variable Rate of 3.35% with monthly payments of £719.99.

APRC: 2.8%

Fees: £1,224.00

True cost: £210,313.40 (for the 25-year term)

HSBC mortgage logo

Initial rate: 1.99%

Initial period: 62 months

Initial monthly payments: £635.05

After the initial period this deal reverts to Barclays Standard Variable Rate of 3.59% with monthly payments of £733.75.

APRC: 3.5%

Fees: £115.00

True cost: £214,120.60 (for the 25-year term)

These rate examples were updated in August 2020.

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Mojo Mortgages is an award-winning online mortgage broker. Let's get you the best rate you can... for free, all from the comfort of your sofa.

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What does best mortgage rate actually mean?

If we're talking purely in terms of best rate, lowest is pretty much what you're looking for. Remember, rate refers to the rate of interest the bank charges you. It's even more important that it seems because you front load interest repayments when you pay back the mortgage.

As we can see from some of the examples, interest is massive. When you borrow £150,000 you actually pay back around £220,000 over the course of 25 years. That £70,000 difference is interest.

But it isn't simply the interest charged at the rate you pick. You also have to look at the revert rate, also called the SVR. This figure is much higher and is actually the rate you'll pay for most of the 25-year mortgage term.

For example, if you get a 2-year fixed at 1.3% you'll still pay 3.3% interest on the SVR for the other 23 years.

In reality, very few people ever pay the SVR rate and they either product transfer or remortgage to avoid it.

Need help with ERCs?
It's never easy working out your remortgage costs and savings. That's why we're only a phone call away if you need any help from a CEMAP-registered mortgage adviser.

However, it's important to consider this when talking about the 'best' mortgage rate because even though 2-year fixed rates tend to be lower, you will run on to the SVR sooner. Even if you avoid the SVR you could incur costs by remortgaging or take a slight hit on the product transfer rate.

There's a lot to consider with 'best' rate.

And that's just the rate… we've not even mentioned fees, flexibility and stuff like lending criteria.

Why use Mojo to find your best mortgage rate?

Because we aim to take a lot of the 'what if' out of mortgages and leave you feeling sure you have the best deal for your circumstances.

The first step of that is seeing exactly what you're eligible for.

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Simply start entering your info. It takes a few minutes, unlike a 2-hour branch or estate agent appointment, and we'll use your answers to show you exactly what over 90 lenders can offer you. That's you comparing over 20,000 deals.

You'll get a whole of market comparison using our Mortgage Matcher tool. Not only will you get an accurate answer to what these lenders will actually offer you, you'll get to see if any of the more specialist lenders cab offer you a better deal than mainstream banks too.

Free mortgage advice on the best rates

When you find a deal you like the look of and you're ready to apply, we make it as clear and as straightforward as possible.

You'll get your own personal mortgage expert who'll answer any questions you have and help you with all the paperwork.

Use the free Mortgage Matcher: compare deals from 90 lenders

Best first-time buyer mortgage rates

Very few lenders actually provide special rates to first-time buyers. the best way you can get a good rate as a first time buyer is the same as anyone else, have no credit issues and a low LTV.

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Mojo Mortgages is an award-winning online mortgage broker. Let's get you the best rate you can... for free, all from the comfort of your sofa.

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Here are a few other articles you may find useful.

Best 2 and 5-year fixed mortgage rates

Best can mean anything depending on what you need, but if you want lowest mortgage rate from each of the lenders? Here you go

See best mortgage rates

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