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.
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:
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.
There are two main types of mortgage rates in the UK:
In many cases, tracker or discounted variable mortgages may appear cheaper initially, but fixed rates offer peace of mind and payment certainty.
To access the most competitive rates, lenders typically look for:
Our advisers at Friends Capital can assess your profile and suggest ways to improve your eligibility before applying.
While mortgage comparison websites can be useful for a general idea of rates, they often:
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.
When comparing mortgage deals, the lowest rate isn’t always the cheapest overall. Be sure to consider:
At Friends Capital, we assess all costs and not just the rate, so you get the most suitable and affordable deal for your needs.
In 2025, a mortgage rate between 4.25% and 4.75% is considered competitive for borrowers with strong profiles and low LTV ratios.
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.
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.
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.
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.