What are the current mortgage interest rates in the UK?

As of April 2025, cuurent mortgage interest rates in the UK are in a much better place than last year. After prolonged periods of high rates, the UK market is slowly calming down. This downturn in rates brings hope to homebuyers and those maybe looking to remortgage.

The base rate and how it affects mortgages

The bank of England’s base rate plays a pivotal role in setting mortgage costs. The base rate peaked at 5.25% last year. Since then the base rate has dropped a few times, now sitting at 4.5%. It hasn’t moved in a few months; the stability helps lenders better plan deals for the near future.

When the base rate drops, lenders usually follow. Mortgage rates offered to customers are lowered in line with the base rate. In recent weeks, many lenders have cut rates, this had led to an attraction of fixed-rate deals again.

Average mortgage rates right now

If you are someone with a decent sized deposit, say 25% or more, you’re much more likely to get a better deal. When looking at current mortgage interest rates in the UK, borrowers with larger deposits can access more competitive deals.

Currently, the average to-year fixed-rate mortgage for those with 75% loan-to-value (LTV) is around 5.07%. Some of the best deals drop as low as 4.48%, depending on the lender.

When reviewing current mortgage interest rates in the UK, five-year fixed deals tend to offer slightly more stability. They average around 5.09%, the top rates are however lower, with some as low as 4.35%.

These figures are quite a drop compared to where we were six to twelve months ago.

Some rates fall below 4%

Yes, you’re reading that correct. A few high-street lenders are offering deals with rates below 4% with banks such as Barclays and Santander leading this push. The conditions these offers usually come under include large deposits and very strong credit scores. They indicate a mortgage market that is finally starting to become competitive again. This is great news for first-time buyers and those looking to re-mortgage.

What does this mean for you?

If buying your first home, the gap between renting and owning is shrinking. In many areas across the UK, mortgage payments are now close to what you would pay for rent. This was far from the case for much of 2023 and 2024. During those years, high interest rates made owning much more expensive than renting.

As current mortgage interest rates in the UK become more competitive, homeownership is becoming more accessible for many.

If the fixed term on your pre-existing mortgage is ending, now may be a good time to shop around. Rates are expected to drop a bit more in the coming months, but these changes are unlikely to be significant. There may not be much to gain in waiting longer.

Will rates keep falling?

While current mortgage interest rates in the UK are expected to fall further, the pace may be gradual. Forecasts suggest that five-year fixed rates may drop to 4.29% by the end of April. Some suggest we could see averages as low as 4.26% by May. It’s not a huge change, but it’s definitely a step in the right direction.

It’s important to understand that these are just predictions. Mortgage rates are dependent on a multitude of factors, things like inflation, wage growth, and global events. If inflation starts to increase again, the Bank of England may rethink its plans and put a halt on the lowering of rates.

Tips if you’re looking for a mortgage now

Shop around

Don’t just look at your usual bank, be sure to compare different lenders.

Use a broker

Brokers will often have access to deals not available online.

Think about fixed vs. variable

A fixed rate gives stability, but you’re locked in for that term. A variable rate gives you flexibility, although rates could go higher as well as lower.

Consider fees

There are some low-rate mortgages that come with high upfront costs. Be sure to check these fees as well as the interest rate.

Plan for the future

Ensure monthly payments will remain affordable in the case that interest rates were to rise.

Get expert advice

Current mortgage interest rates in the UK have stopped climbing. Following many months of worry, the market has stabilised and cooled a little. Fixed-rates sit lower than they were last year, with some lower than 4%, something we haven’t seen in quite a while.

If you’re looking to buy soon, you’ll hopefully be walking in to a better deal. If you’re already a homeowner, now may be a good time to lock in a new deal. It is however important to remember, while the worst may be over, the mortgage market is still not back to normal yet.

Let Regulated Advice match you with a mortgage advisor for expert advice.