The mortgage market has entered calmer waters compared to the turbulence of 2022-23. The Bank of England reduced its base rate to 4.0% in August, sparking a wave of modest rate cuts across the market. This article explores how the best mortgage deals compare across different categories as of August 2025.
Current Average Mortgage Rates
While mortgage deals and rates can change at any moment, the average figures for current mortgage deals as of late August 2025 are:
For residential mortgages, across lenders:
- 4.74% for a two-year fixed rate (75% LTV)
- 4.94% for a five-year fixed rate (75% LTV)
- 4.54% for a two-year tracker rate (75% LTV)
For buy-to-let mortgages, across lenders:
- 5.15% for a two-year fixed rate (75% LTV)
How Do The Top Lenders Stack Up?
In mid-August, some of the best mortgage rates stood as follows:
- Two-year fixed rate from Lloyds Bank at 3.69%.
- Five-year fixed rate from NatWest at 3.81%.
- Ten-year fixed rate from Nationwide and Santander at 4.39%.
The mortgage rate offerings from the ‘big six’ lenders are set out below.
1. Nationwide Building Society
Here are Nationwide’s mortgage rates as of August 2025:
For first-time buyers:
- Two-year fixed at 60% LTV (with £1,499 fee): 3.86%.
- Two-year fixed at 90% LTV (with £999 fee): 4.33%.
- Three-year fixed at 90% LTV (no fee): 4.79%.
For new customers moving home:
- Two-year fixed at 60% LTV (£1,499 fee): 3.74%.
- Two-year fixed at 90% LTV (£999 fee): 4.27%.
- Five-year fixed at 85% LTV (£999 fee): 4.09%.
For remortgagers:
Two-year fixed at 75% LTV (with £999 fee): 3.99%.
For existing customers approaching deal end and looking to switch, Nationwide states that, “all switcher product rates will be the same or lower than the remortgage equivalents.”
2. Halifax
Here are Halifax’s available mortgage rates as of August 2025. Borrowers are encouraged to use the Halifax mortgage deals calculator to find particular deals and information:
- For a new purchase two-year fixed at 60% LTV: 3.83%.
- For a remortgage five-year fixed at 75% LTV: 4.03%.
3. Santander
Here are Santander’s current mortgage rates as of August 2025:
For first-time buyers:
- Two‑year fixed at 75% LTV
- 3.92% with £999 fee (including new build exclusive)
- Two-year fixed at 85% LTV
- 3.99% with £999 fee
- 4.25% with £0 fee
- Two-year fixed at 90% LTV
- 4.40% with £999 fee (new build exclusive)
For home movers:
- Three-year fixed at 60% LTV: 3.94% (with £999 fee)
- Five-year fixed at 60% LTV: 3.89% (with £999 fee)
- Two-year fixed at 90% LTV: 4.30% (with £999 fee)
- Three-year fixed at 85% LTV: 4.52%
For remortgagers:
- Two-year fixed at 85% LTV: 4.86% (fee-free)
- Three-year fixed at 60% LTV: 4.01% (with £999 fee)
- Five-year fixed at 60% LTV: 3.92% (with £999 fee)
4. HSBC
Here are the current mortgage rates for HSBC:
For first-time buyers:
- 70% LTV
- Two-year fixed Fee Saver: 4.13% (no booking fee)
- Two-year fixed Standard: 3.85% (with £999 fee)
- 85% LTV
- Two-year fixed Fee Saver: 4.30% (no fee)
- Two-year fixed Standard: 4.28% (with £999 fee)
For homemovers and remortgagers:
Two- and five-year fixed rates have been lowered for LTV bands at 60%, 70%, and 75%.
5. NatWest
Here are the current, available mortgage rates for NatWest:
For first-time buyers:
- Two-year tracker at 75% LTV: rates range from 4.33% to 4.61% depending on product fee (either £995 or £0).
- Two-year fixed: starting from 3.95% with a £1,495 product fee.
For home movers:
- Five-year fixed deals beginning at 4.04% are available.
For remortgagers:
- Two-year fixed rate at 60% LTV: 3.94%
- Five-year fixed rate at 60% LTV: 4.00%
6. Barclays
Here are the current mortgage rates available from Barclays as of August 2025:
- Two-year fixed for purchases:
- At 85% LTV with £899 product fee: 4.12%
- At 85% LTV with no product fee: 4.43%
- Two-year fixed for remortgages at 85% LTV with £999 product fee: 4.39%
- Five-year fixed for remortgages at 85% LTV with £999 product fee: 4.20%
How to Compare Mortgage Deals and Find the Best Option
Choosing a mortgage deal can feel overwhelming, as the market is full of different products with varying rates, fees and conditions. The key to finding the best mortgage deals is to take a structured approach. Here are some useful tips for how to compare mortgage deals and determine which product is right for you.
1. Work out your Loan-to-Value (LTV): Your loan-to-value (LTV) is the proportion of the property price that you will need to borrow, with the proportion you are not borrowing being your deposit or equity. Knowing your LTV makes it easier to filter through current mortgage deals and narrow down what is realistically available to you.
2. Choose the right mortgage rate type: When you compare mortgage deals, you will notice that most are grouped by how the interest rate is applied:
- Fixed mortgage rates: These mortgage deals lock in the same interest rate for a set period, usually two or five years. They provide security by keeping monthly payments consistent.
- Tracker mortgage rates: These follow the Bank of England’s base rate, usually at a set percentage above it. Payments can rise or fall depending on interest rate changes.
Choosing between a fixed or tracker mortgage rate deal depends on whether you value certainty or flexibility in your arrangement.
3. Compare interest rates: The interest rate is one of the most important aspects to review when you compare mortgage deals. Generally, lower rates save money, but they may come with higher fees. For this reason, it is crucial to look beyond the headline rate and calculate the true cost of the mortgage.
4. Factor in mortgage fees: When reviewing mortgage deals, remember to calculate the fees, as these can change the overall cost. Typical fees include:
- Arrangement fees: Charged by the lender for setting up the mortgage.
- Valuation fees: Required to check the property’s market value.
- Legal fees: Covering the conveyancing work required when securing or switching a mortgage.
5. Be aware of Early Repayment Charges (ERCs): Most fixed mortgage rates include early repayment charges (ERCs). These apply if you leave the mortgage during the deal period or repay more than the allowed annual overpayment limit (often 10% per year). If you think you may move house or repay early, it may be worth considering deals with lower or no ERCs. A portable mortgage, which can be transferred to a new property, is another option, but it may not always be the most competitive.
6. Use a mortgage broker: If you are struggling to navigate all the current mortgage deals available, a mortgage broker may be able to help. Brokers can compare mortgage deals based on true cost, factoring in both interest rates and fees, and can advise which option is best suited to your circumstances. Brokers can also access mortgage deals that consumers may not be able to see. To make sure you are seeing the full market, use a whole-of-market broker.
Conclusion
2025 is turning out to be a year where borrowers with strong credit can find competitive mortgage deals. Whether you are remortgaging, entering the market with a modest deposit or simply aiming for long-term security, comparison is key. Speak to a mortgage broker, understand the fees, and use comparative tools to navigate your options and secure the deal that fits your needs best.
FAQs
Q. How to compare mortgage deals?
A. Use comparison tools to compare mortgage deals by LTV, term and fees, focusing on the full cost, not just headline rates. Also consider using a mortgage broker to get advice and access exclusive deals not directly available to consumers.
Q. What are the best mortgage deals at the moment?
A. In mid-August, some of the best mortgage rates stood as follows:
- Two-year fixed mortgage rate from Lloyds Bank at 3.69%.
- Five-year fixed mortgage rate from NatWest at 3.81%.
- Ten-year fixed mortgage rate from Nationwide and Santander at 4.39%.
Q. Are two-year fixes now cheaper than five-year fixes?
A. Yes, currently, the average two-year fixed mortgage rate is slightly lower than the average five-year fixed rate.
Additional Sources
https://www.dealdirectfinancial.co.uk/barclays-mortgage-rates-cut-412-percent-august-2025/
https://www.nerdwallet.com/uk/mortgages/mortgage-rates/
https://www.uswitch.com/mortgages/uk-mortgage-rates-today/
https://www.nationwide.co.uk/media/news/nationwide-cuts-rates-across-mortgage-range
https://verifimortgages.co.uk/halifax-mortgage-rates/
https://www.mpamag.com/uk/mortgage-industry/guides/santander-mortgage-rates/411752
https://www.dealdirectfinancial.co.uk/hsbc-mortgage-rates-august-2025/
https://www.mpamag.com/uk/mortgage-industry/guides/natwest-group-mortgage-rates/411753
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