Mortgage Best Buys: Compare the Top UK Deals for 2025
If you’re looking to buy your first home, remortgage, or move to a better rate, finding the best mortgage deal can save you thousands over the life of your loan. With interest rates shifting and lenders tightening criteria, it’s more important than ever to compare carefully.
This guide breaks down the top mortgage best buys in the UK for 2025, showing you how to compare, what to consider, and which banks are currently offering the most competitive deals.
🏡 What Does “Mortgage Best Buy” Actually Mean?
A mortgage best buy is not just the one with the lowest interest rate. It refers to the most cost-effective deal for your specific situation, considering factors such as:
-
Loan-to-value (LTV)
-
Fixed or variable interest
-
Upfront fees
-
Cashback or free valuation offers
-
Flexibility and overpayments
In many cases, a lower interest rate with high fees could cost you more than a slightly higher rate with no fees.
🔍 How to Choose the Right Mortgage Deal
Before diving into rates, consider the following questions:
-
Are you a first-time buyer, home mover or remortgaging?
-
How much deposit do you have?
-
Do you want certainty with a fixed rate, or flexibility with a tracker?
-
How long do you plan to stay in the property?
Different banks cater to different borrowers. For example:
-
Halifax often has deals tailored for first-time buyers.
-
Nationwide offers cashback on selected remortgage products.
-
HSBC regularly provides some of the UK’s lowest fixed rates.
-
Barclays tends to include offset mortgage options.
📊 Best Buy Mortgage Table (June 2025)
Below is a responsive comparison of current mortgage best buys based on a £200,000 loan with 25-year term and 75% LTV:
| Lender | Type | Initial Rate | Term | Monthly Cost | Product Fee | Overall Cost (2 yrs) |
|---|---|---|---|---|---|---|
| HSBC | 2-yr Fixed | 4.49% | 2 yrs | £1,103 | £999 | £27,471 |
| Santander | 5-yr Fixed | 4.69% | 5 yrs | £1,134 | £0 | £68,040 |
| Halifax | 2-yr Tracker | Base + 0.89% | 2 yrs | £1,092 | £995 | £27,207 |
| NatWest | 5-yr Fixed | 4.58% | 5 yrs | £1,117 | £1,495 | £69,515 |
| Barclays | Offset Tracker | Base + 1.25% | 2 yrs | Varies | £999 | Depends on savings |
Rates and fees accurate as of June 2025. Please check with the provider directly for updates.
💡 See more tools at MoneyHelper Mortgage Guide.
🧾 Fixed vs Tracker: Which is Right for You?
✅ Fixed Rate Mortgages
-
Interest stays the same for 2, 3, or 5+ years
-
Great for budgeting and peace of mind
Best for: First-time buyers and those with tight budgets
✅ Tracker Mortgages
-
Interest moves with Bank of England base rate
-
Can be cheaper when rates drop
Best for: People expecting rates to fall or who want flexibility
Example: Halifax’s base rate tracker currently offers competitive pricing but comes with some risk if the BoE rate rises again in 2025.
💷 What Fees Should You Watch Out For?
The mortgage with the lowest rate isn’t always the cheapest once fees are included. Here are key charges to compare:
| Fee Type | Typical Range | What It Covers |
|---|---|---|
| Product Fee | £0 – £1,999 | Charged by lender for accessing certain deals |
| Valuation Fee | £0 – £500 | Covers a property value assessment |
| Legal Fees | £300 – £1,000+ | Conveyancing and registration work |
| Exit or Early Repay | 1–5% of loan balance | Charged if you leave early during fixed period |
Tip: Look for deals with “free valuation” or “free legals” if remortgaging — often offered by Nationwide and Lloyds Bank.
🔄 What About Remortgaging?
Remortgaging when your current deal ends could save you hundreds each month. For instance, if you’re on your lender’s standard variable rate (SVR), which could be 6.99% or more, you might be overpaying.
UK banks offering top remortgage deals:
-
TSB: Offers £500 cashback on switch
-
Skipton Building Society: Known for long-term fixed deals (up to 10 years)
-
First Direct: Great customer support and low rates
Most lenders allow you to secure a new deal up to 6 months before your current one ends.
🧠 Common Questions About Mortgage Best Buys
❓ Can I get a mortgage with bad credit?
Some lenders like Kensington or Aldermore specialise in adverse credit, but you’ll pay a higher rate. Speaking to a broker is advised.
❓ Is it worth paying a product fee?
Yes, if the lower rate offsets the fee over time. Use a mortgage calculator to check.
❓ How much deposit do I need?
You can get mortgages with as little as 5%, but deals improve dramatically with 10–25% deposits.
❓ Do online banks offer mortgages?
Yes. Digital-only providers like Atom Bank or Molo now offer competitive rates, especially for tech-savvy buyers.
📈 How to Stay on Top of Rate Changes
The mortgage market changes quickly. To stay informed:
-
Use mortgage comparison tools monthly
-
Track the Bank of England base rate
-
Set reminders when your fixed term ends
-
Speak to a broker or adviser every 2–5 years
Tools like Habito or Trussle can scan best buys and offer recommendations in minutes.
🏦 Conclusion: Always Compare Before You Commit
There’s no one-size-fits-all mortgage. The best buy for one person may be unsuitable for another.
👉 Use calculators
👉 Check total cost (not just the rate)
👉 Compare product fees and flexibility
👉 Speak to a broker if you’re unsure
Take time to compare carefully — especially when the difference in deals can be £10,000+ over a mortgage lifetime.