There are now 18 mortgage products offered by seven different lenders with sub-4% rates, compared to just two products from two lenders at the start of the month.
This sharp increase highlights how quickly the mortgage market has shifted, and reflects a growing battle among high-street lenders to offer the most competitive deals.
Read on to find out which lenders offer the lowest mortgage rates and whether now is the right time to shop around for a mortgage deal or if you’re better off waiting for further rate cuts.
Which lenders offer sub-4% deals?
Barclays, Coventry Building Society, HSBC, Nationwide Building Society, NatWest, RBS and Santander currently offer sub-4% mortgages.
However, these sub-4% deals are reserved for borrowers with the lowest loan-to-value (LTV) ratios. So, only borrowers with large deposits or a big chunk of equity in their home can benefit.
Currently, the top rates at 60% LTV are below 4%, but the best 90% LTV deals sit around 4.5% for those remortgaging, first-time buyers and home movers.
The broader drop in rates is also reflected in the average two and five-year fixed mortgage rates. According to Moneyfacts, on 1 April, the average two-year fix was 5.31%, and the five-year fix was 5.18%. Now, those averages have fallen to 5.21% and 5.12%, respectively.
Lowest two-year fixed mortgage rates by LTV
Table notes: Data from Moneyfacts, correct as of 28 April 2025. Customer scores are based on a survey of 3,556 members of the public in August-September 2024 and combine overall satisfaction with likelihood to recommend the provider. The average customer score is 70%. To become a Which? Recommended Provider a lender must get a top customer score, consistently offer competitive deals and be fully covered by the Financial Conduct Authority banking standards regime. ‘Revert rate’ is the standard variable rate (SVR), which is the mortgage rate you’d be transferred onto when your deal ended if it remained unchanged between now and then.
Lowest five-year fixed mortgage rates by LTV
Table notes: Data from Moneyfacts, correct as of 28 April 2025. Customer scores are based on a survey of 3,556 members of the public in August-September 2024 and combine overall satisfaction with likelihood to recommend the provider. The average customer score is 70%. To become a Which? Recommended Provider a lender must get a top customer score, consistently offer competitive deals and be fully covered by the Financial Conduct Authority banking standards regime. ‘Revert rate’ is the standard variable rate (SVR), which is the mortgage rate you’d be transferred onto when your deal ended if it remained unchanged between now and then.
- Find out more: best mortgage rates
Beware of table-topping rates with eye-watering fees
As lenders continue to lower mortgage rates, it’s important not to focus solely on the rate, as the associated fees can significantly affect the overall cost of a deal.
In the past, we’ve seen low-rate mortgages offset by high fees, making some higher-rate deals more cost-effective in the long run.
For example, out of the 18 sub-4% deals, the highest fee is £1,499. At present, the average fee across the 18 sub-4% deals is £1,071.
For those looking to avoid upfront costs, the top fee-free deal is offered by HSBC, with a rate of 4.15%.
To strike the right balance between interest rate and fees, it’s worth speaking to a mortgage broker. They can help you compare options across the market and find a deal that’s both cost-effective and tailored to your needs.
- Find out more: choosing a mortgage broker
Choice of low deposit mortgages rises to 17-year high
Research from Moneyfacts reveals that as top mortgage rates are falling, product choice, particularly for those with low deposits, is on the rise.
The number of 90% and 95% loan-to-value (LTV) mortgage deals available is now at its highest level since March 2008, offering more options for first-time buyers and those with smaller deposits.
Overall mortgage product availability is also increasing, rising to 6,870 deals – about 500 more than were available this time last year.
In addition, the average shelf life of a mortgage product has risen to 21 days, up from 16 days a month ago, suggesting that while competition remains strong, some deals are sticking around slightly longer than during the flurry of changes in March.
However, it remains some way from the average shelf life of 36 days at the start of February.
Should mortgage holders wait for further rate reductions?
Nicholas Mendes of the mortgage broker John Charcol says: ‘With interest rates showing signs of easing, many homeowners may feel tempted to hold off in the hope of securing a better deal further down the line. However, it’s important to bear in mind that while rates have begun to dip from their peak, no one can say with certainty how the market will behave in the coming months.
‘If your current mortgage deal is due to end soon, it’s sensible to begin shopping around early. A number of lenders allow you to secure a rate up to six months in advance. This gives you the flexibility to lock in a competitive deal now while still retaining the option to switch to a better one later, should rates continue to fall. Essentially, this gives you a safety net – you’re not gambling on perfectly timing the market. If rates do drop further, you may have the choice to switch to a lower deal with the same lender or even cancel the application and remortgage with a new provider entirely. ‘
When to think about remortgaging
- The last six months of your fixed term: start searching for a new deal. You can get a quote from your existing lender, but you may be able to get a better rate by contacting a mortgage broker, who can search the whole market for the best deal.
- More than six months left on your fixed term: you don’t need to think about remortgaging just yet. You’ll need to pay Early Repayment Charges (ERCs) if you switch deals mid-term.
- On a standard variable rate (SVR) mortgage: if you’re able to switch to another deal, do so as soon as you can. You’re likely paying more than you need to. Lender SVRs currently average just below 8%.
Find out more: remortgaging: how to switch to a new deal
This story was first published on Friday, 25 April 2025. It was updated on 28 April 2025 with refreshed figures on the lenders offering sub-4% deals.
