Mortgage information is general guidance only. Mortgages are regulated by the FCA. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE. Consult an FCA-regulated mortgage adviser before making decisions.
Contents
Mortgage rates vary significantly depending on your deposit, the deal type, and the lender. Here’s how to find the best rate for your situation.
Read more: See our Credit Scores guide for a complete overview of this topic.
Current Mortgage Rates Overview
Rates are indicative and change frequently. Always check current offers.
Fixed Rate Mortgages
LTV
2-Year Fixed
5-Year Fixed
60%
4.2-4.6%
4.0-4.4%
75%
4.4-4.9%
4.2-4.7%
85%
4.8-5.3%
4.6-5.1%
90%
5.2-5.8%
5.0-5.5%
95%
5.5-6.2%
5.3-5.9%
Variable Rate Mortgages
Type
Typical Rate
Notes
Tracker
Base rate + 0.5-1.5%
Follows Bank of England rate
Discount
SVR minus 1-2%
Discounted from lender’s SVR
SVR
6.5-8.5%
Lender’s standard rate
Best Rates by Buyer Type
First-Time Buyers
LTV
Considerations
Typical Rates
95%
Minimum deposit
5.5-6.2%
90%
10% deposit
5.2-5.8%
85%
Help from family
4.8-5.3%
First-time buyer specific deals often have lower fees or cashback.
Home Movers
Situation
Strategy
Significant equity
Use for larger deposit, get better rate
Porting mortgage
Check if current deal is portable
Chain-free
More attractive to sellers
Remortgaging
Current Situation
Consider
On SVR
Almost certainly remortgage
Fixed deal ending
Shop around early (3-6 months before)
Current rate OK
Calculate if switching is worth fees
Buy-to-Let
LTV
Typical Rates
Notes
60%
4.5-5.2%
Best BTL rates
75%
5.0-5.8%
Standard BTL LTV
BTL rates are typically 0.5-1% higher than residential.
How LTV Affects Your Rate
The LTV Tiers
LTV
What It Means
Rate Impact
95%
5% deposit
Highest rates
90%
10% deposit
Better rates available
85%
15% deposit
Noticeable improvement
80%
20% deposit
Good selection
75%
25% deposit
Very competitive
60%
40% deposit
Best rates
Monthly Payment Difference
£250,000 mortgage, 25-year term:
LTV
Rate
Monthly Payment
vs 60% LTV
60%
4.3%
£1,363
—
75%
4.6%
£1,405
+£42/month
85%
5.0%
£1,461
+£98/month
90%
5.5%
£1,533
+£170/month
95%
5.9%
£1,592
+£229/month
Over 2 years, the 95% LTV borrower pays £5,496 more than the 60% LTV borrower.
Fixed vs Tracker vs Variable
Fixed Rate
Pros
Cons
Payment certainty
Locked in if rates fall
Budget confidence
Early repayment charges
Protection from rises
May miss out on tracker falls
Tracker Rate
Pros
Cons
Falls if base rate falls
Rises if base rate rises
Often lower initial rates
Payment uncertainty
Usually lower ERCs
Need to budget for rises
When to Choose Each
Situation
Consider
Value certainty
Fixed
Think rates will fall
Tracker
Planning to move
Short fix or tracker
Tight budget
Fixed (for certainty)
Mortgage Fees Explained
Common Fees
Fee
Typical Amount
Notes
Arrangement fee
£0-2,000
Can often add to mortgage
Booking fee
£0-250
Non-refundable
Valuation fee
Often free
Some lenders charge
Legal fees
£300-1,000
Some deals include free legals
Fee vs Rate Trade-off
Option
Rate
Fee
True Cost (£200k, 2yr)
Low rate, high fee
4.5%
£1,500
£19,548 + £1,500 = £21,048
Slightly higher rate, no fee
4.7%
£0
£19,948 + £0 = £19,948
Sometimes the “higher” rate is actually cheaper overall.
How to Get the Best Rate
1. Improve Your LTV
Action
Impact
Save larger deposit
Better rate tier
Use gifted deposit
Same effect
Overpay existing mortgage
Lower LTV at remortgage
Wait for house prices to rise
Passive LTV improvement
2. Boost Your Credit Score
Action
Impact
Check credit file for errors
Remove incorrect negatives
Register on electoral roll
Basic requirement
Pay bills on time
6+ months before applying
Reduce credit utilisation
Below 30% of limits
3. Compare Total Cost
Factor
Include
Interest over deal period
Primary cost
Arrangement fee
Add to total
Valuation/legal fees
Include if charged
Cashback
Subtract from cost
4. Use a Mortgage Broker
Broker Benefits
Considerations
Access to full market
May charge fee (often £300-500)
Expert advice
Check if whole-of-market
Handles application
Free brokers exist too
Knows lender criteria
Best Rate Comparison: £300,000 Property, £240,000 Mortgage (80% LTV)
Lender Type
Rate
Fee
Monthly
5-Year Cost
Best rate
4.4%
£999
£1,320
£80,199
No fee
4.6%
£0
£1,346
£80,760
Cashback
4.7%
-£500
£1,360
£81,100
Actual lender offers will vary — this is illustrative.
When to Remortgage
Good Times to Remortgage
Situation
Action
Current deal ending in 3-6 months
Start looking now
On SVR
Almost always worth switching
Significant equity gained
Could get better LTV tier
When Remortgaging May Not Be Worth It
Situation
Consider
High early repayment charges
Cost vs benefit of waiting
Moving soon
May need flexible mortgage
Only small rate improvement
Fees may outweigh savings
Key Takeaways
LTV is crucial — bigger deposit = better rate
Compare total cost — not just the rate
Consider fee vs rate — lower rate isn’t always cheaper
Use a broker — access to full market and expertise
Your home may be repossessed if you do not keep up repayments on your mortgage. PocketWise provides information and guidance — we do not offer financial advice. Seek independent mortgage advice before making decisions about borrowing.