How to Find the Lowest Mortgage Rates in the UK: 2025 Guide

How to Find the Lowest Mortgage Rates in the UK (2025 Guide)

With mortgage rates fluctuating regularly in response to Bank of England base rate changes, inflation, and wider economic conditions, finding the lowest mortgage rate can be challenging — but it can also save you thousands over the life of your loan.

At Friends Capital Ltd, we help borrowers across the UK navigate the market and secure the best deals. Whether you’re a first-time buyer, home mover, or looking to remortgage, this guide will help you understand what affects your mortgage rate, how to compare deals, and where to get expert advice.

What Are the Lowest Mortgage Rates Available Right Now?

Mortgage rates change frequently, but as of mid-2025, some of the lowest fixed rates are available from around 4.25% to 4.75% for borrowers with high equity or a large deposit. Variable and tracker rates may offer even lower starting points, but come with the risk of rising if interest rates increase.

Your actual rate will depend on:

  • Loan-to-value (LTV) ratio
  • Credit history
  • Mortgage term
  • Type of product (fixed, tracker, variable)
  • Income and affordability
  • Lender criteria

To get an accurate picture of the best rate available for your circumstances, it's important to get personalised quotes — which a broker can arrange quickly.

Fixed vs Variable Rates: Which Is Lower?

There are two main types of mortgage rates in the UK:

  • Fixed rate: Your interest rate stays the same for a set period (typically 2, 3, or 5 years). Great for budgeting, though not always the lowest.
  • Variable or tracker rate: The rate can go up or down, usually following the Bank of England base rate. These can start lower than fixed rates, but carry more risk.

In many cases, tracker or discounted variable mortgages may appear cheaper initially, but fixed rates offer peace of mind and payment certainty.

How to Qualify for the Lowest Mortgage Rates

To access the most competitive rates, lenders typically look for:

  • Low loan-to-value (LTV): The more equity or deposit you have, the lower the risk for the lender. For example, 60% LTV products often have lower rates than 85% LTV options.
  • Good credit history: Clean credit with no missed payments or defaults can open doors to high street lender deals.
  • Stable income and employment: Lenders want to see consistent income and a good debt-to-income ratio.
  • Strong application: A well-prepared application can help avoid delays or rejections.

Our advisers at Friends Capital can assess your profile and suggest ways to improve your eligibility before applying.

Should You Use a Mortgage Comparison Site?

While mortgage comparison websites can be useful for a general idea of rates, they often:

  • Only show headline rates (not the true cost)
  • Exclude specialist lenders or broker-only deals
  • Don’t factor in fees, incentives, or eligibility

A professional mortgage adviser will compare the whole of the market, including exclusive deals not available on public platforms, and match you with the most cost-effective product — not just the lowest rate.

Understanding the True Cost of a Mortgage

When comparing mortgage deals, the lowest rate isn’t always the cheapest overall. Be sure to consider:

  • Product fees: Some low-rate deals come with high upfront charges.
  • Incentives: Cashback, free valuations, or legal fees may offset slightly higher rates.
  • Reversion rate: What rate will you pay after the fixed term ends?
  • Early repayment charges (ERCs): Check how flexible the product is if you plan to repay early.

At Friends Capital, we assess all costs and not just the rate, so you get the most suitable and affordable deal for your needs.

Most Searched Questions About Low Mortgage Rates in the UK

What is a good mortgage rate in the UK right now?

In 2025, a mortgage rate between 4.25% and 4.75% is considered competitive for borrowers with strong profiles and low LTV ratios.

Who is offering the lowest mortgage rates in the UK?

Lenders such as HSBC, NatWest, Halifax, and specialist building societies often compete on rate, but the best lender for you will depend on your personal circumstances.

How can I reduce my mortgage interest rate?

You can reduce your rate by improving your credit score, increasing your deposit or equity, choosing a shorter fixed term, and using a broker to access exclusive deals.

Are fixed or variable rates better in 2025?

With potential interest rate changes still possible, fixed rates offer more stability, while tracker deals may suit those willing to accept some risk for a lower initial rate.

Speak to a Mortgage Expert Today

Finding the lowest mortgage rate can be time-consuming and confusing — especially with so many lenders and changing market conditions. At Friends Capital Ltd, our experienced advisers compare products from across the UK mortgage market and recommend the best option tailored to your goals.

Whether you're buying your first home, remortgaging, or investing in property, we’re here to help you make a smart, informed decision.

Get in touch with one of our expert mortgage advisers today to find out what your lowest available rate could be — and how to secure the best mortgage for your circumstances.