After years of uncertainty in the mortgage market, 2025 has finally brought some stability, but it hasn’t exactly returned to the golden age of ultra-low borrowing.
If you’re considering locking in a 5-year fixed mortgage rate right now, you’re not alone. Many buyers are wondering: is this as good as it gets?
Despite the Bank of England reducing the base rate three times this year, fixed mortgage rates have not dropped as sharply as many had hoped. With most deals hovering between 4% and 5%, it’s still a far cry from the sub-2% deals seen in the early 2020s.
However, lenders are showing signs of healthy competition, and the right fixed deal today could potentially save borrowers thousands over five years.
Why Are 5-Year Fixed Mortgage Deals So Popular in 2025?
For homebuyers and remortgagers alike, a 5-year fixed mortgage rate provides predictability. With inflation pressures, slow base rate reductions, and a volatile global economy, many are leaning toward certainty.
- Rate Stability: Fixed rates allow homeowners to budget with confidence.
- Market Timing: Locking in now could protect against potential future rate hikes.
- Avoiding Remortgage Hassle: No need to switch deals or renegotiate annually.
- Appealing for First-Time Buyers: Five years of stable payments reduce early financial shocks.
It’s also worth noting that lenders are offering increasingly competitive 5-year fixed rate deals, particularly for those with high credit scores and decent deposits.
What Should You Consider Before Choosing a Fixed Mortgage Rate?
While fixed rate deals offer peace of mind, they aren’t one-size-fits-all. Borrowers should weigh several factors before committing:
- Early Repayment Charges (ERCs): Most fixed deals penalise early exits, which is important if you may move.
- Loan-to-Value (LTV): The best rates often require LTV ratios below 60%.
- Fee Structures: Some “cheap” deals include hefty fees, while others are fee-free with slightly higher rates.
- Flexibility: Not all deals allow overpayments or payment holidays.
- Future Market Trends: If rates drop significantly in the next few years, you might miss out by being locked in.
Ultimately, choosing a fixed mortgage is about balance, between cost, flexibility, and your personal financial strategy.
How Does the Bank of England Rate Affect 5-Year Fixed Mortgages?
The Bank of England (BoE) base rate has historically had a strong influence on mortgage pricing. In 2025, while the BoE has already implemented three rate cuts, the transmission to consumer mortgage rates has been slower than expected.
Lenders adjust their rates based on:
- Anticipated future changes in the BoE rate
- Cost of funding from wholesale markets
- Risk appetite and competition within the mortgage market
Although base rate reductions tend to filter into tracker and variable-rate mortgages quickly, fixed rate deals are more influenced by future expectations. If markets expect rates to drop again, lenders may lower fixed rates pre-emptively to stay competitive.
Top 10 Best Mortgage Rates 5 Year Fixed
This list features the most competitive 5-year fixed mortgage rates currently available in the UK, based on October 2025 data from trusted financial sources.
Each product is assessed not just on the initial interest rate, but also on its revert rate, fee structure, flexibility, and lender reputation.
Borrowers should always consider their personal circumstances, deposit size, and future plans before selecting a mortgage.
1. NatWest
NatWest continues to secure its spot among the UK’s top mortgage lenders with a 5-year fixed deal that balances flexibility, competitive pricing, and borrower incentives.
The lender provides options with and without product fees, giving applicants room to tailor their mortgage to personal finances. For those with smaller deposits, NatWest supports up to 95% LTV, which is particularly useful for first-time buyers.
Notably, the lender promotes sustainability through its Green Mortgage scheme, offering better rates for energy-efficient homes (EPC A or B). Borrowers may also benefit from cashback offers, free standard valuations, and remortgage legal support.
With a fast-track “Agreement in Principle” tool that doesn’t affect credit scores, NatWest appeals to digital-savvy applicants. Their steady appearance on best-buy tables underscores reliability and value.
| Feature | Detail |
|---|---|
| Initial Rate | 4.02% |
| Revert Rate | 6.99% |
| Max LTV | Up to 95% |
| Fee | £1,525 |
2. Nationwide
Nationwide’s 5-year fixed rate products are designed to accommodate a wide audience, from low-deposit first-time buyers to long-time remortgagers. With up to 95% LTV, they provide excellent flexibility and support for those with smaller deposits.
A key advantage lies in their Member Exclusive deals, rewarding loyalty with preferential rates and terms. Nationwide’s offers often come with cashback, free property valuations, and legal fee coverage on remortgages. The lender also allows overpayments and porting, catering to buyers with evolving homeownership plans.
Their commitment to transparency and customer service has made them a trusted lender for decades. Whether you’re switching lenders or buying for the first time, Nationwide’s options combine stability, affordability, and trust.
| Feature | Detail |
|---|---|
| Initial Rate | 4.45% |
| Revert Rate | 6.74% |
| Max LTV | Up to 95% |
| Fee | £999 |
3. Halifax
Halifax offers a versatile selection of 5-year fixed mortgage deals tailored for both new buyers and experienced homeowners. With options available up to 95% LTV, they are accessible to first-time buyers needing higher loan values.
Halifax products frequently come with cashback incentives, and their “Homebuyer Cashback” option is particularly appealing. For remortgagers, free valuations and standard legal services are included, reducing upfront expenses.
Borrowers are permitted to make overpayments up to 10% annually without a penalty, giving repayment flexibility. Halifax also excels in online tools for affordability checks and repayment calculations, offering a straightforward journey from enquiry to offer.
For those who prefer a major high street name with proven digital support, Halifax is a consistent top-tier choice.
| Feature | Detail |
|---|---|
| Initial Rate | 4.78% |
| Revert Rate | 7.49% |
| Max LTV | Up to 95% |
| Fee | £1,099 |
4. HSBC
HSBC is often a go-to lender for customers who want both low fixed rates and responsive service. Their 5-year fixed offers are accessible to first-time buyers, home movers, and those remortgaging, with LTVs reaching up to 95%.
HSBC products commonly feature low or no fees, and the lender allows overpayments and porting in case of property moves. The relatively lower revert rate compared to other lenders is a standout benefit, offering a safety net if borrowers don’t remortgage promptly.
HSBC’s tech platform is also a highlight, with quick applications, mortgage calculators, and the ability to track applications online. For those who want a combination of rate competitiveness, reputation, and a digital-first process, HSBC remains an industry leader.
| Feature | Detail |
|---|---|
| Initial Rate | 4.06% |
| Revert Rate | 6.49% |
| Max LTV | Up to 95% |
| Fee | £1,016 |
5. Santander
Santander remains highly competitive in the fixed-rate mortgage market, offering attractive deals with a strong blend of affordability and innovation. Their LTV options go as high as 95%, appealing to a broad borrower base.
A standout initiative is their “Track Record Mortgage”, which allows renters to qualify with smaller deposits by showing a reliable rent payment history, a key development for Generation Rent. Cashback incentives, free valuations, and standard legal support are also common in their remortgage products. Borrowers benefit from robust online tools, including affordability checkers and document upload features.
The ability to overpay up to 10% annually without penalty adds flexibility. Santander’s balance of competitive pricing and borrower-friendly features makes it a consistently recommended option.
| Feature | Detail |
|---|---|
| Initial Rate | 4.51% |
| Revert Rate | 6.75% |
| Max LTV | Up to 95% |
| Fee | £999 |
6. TSB
TSB’s mortgage offering is tailored to those who appreciate simplicity, accessibility, and fair value. With maximum LTVs often reaching 90–95%, TSB products cater well to buyers with lower deposits.
Many of their deals feature low or no fees, and borrowers benefit from standard incentives like free legal work and valuations on remortgage products.
Overpayments up to 10% annually are permitted, providing repayment flexibility. TSB’s online tools are clear and user-friendly, offering agreement-in-principle and repayment forecasting tools.
The bank’s strong branch network and digital support services make it an appealing choice for borrowers who want the option of both personal and online guidance. TSB’s mortgage deals appeal particularly to first-time buyers seeking value and transparency.
| Feature | Detail |
|---|---|
| Initial Rate | ~4.70% (variable by profile) |
| Revert Rate | ~7.49% |
| Max LTV | Up to 95% |
| Fee | Typically £0–£995 |
7. Virgin Money
Virgin Money distinguishes itself with flexible, digitally driven mortgage products designed for diverse borrower profiles. With options reaching up to 95% LTV, their 5-year fixed rate products support both first-time buyers and remortgagers.
Some offers come with cashback, free valuations, or discounted legal services, adding upfront affordability. A highlight of Virgin’s range is its “Flexible Mortgage” feature, which can include underpayments, overpayments, and even payment holidays, subject to agreement.
The online application journey is streamlined, and Virgin frequently adjusts its deals to reflect market changes, a sign of proactive customer engagement.
For borrowers who want a modern mortgage experience with a reputable brand, Virgin Money is a strong contender.
| Feature | Detail |
|---|---|
| Initial Rate | 4.72% |
| Revert Rate | 6.99% |
| Max LTV | Up to 95% |
| Fee | £25–£995 (varies by product) |
8. First Direct
First Direct excels in offering digitally efficient mortgage deals with highly competitive fixed rates. Their focus is on streamlined, customer-first service, ideal for applicants who prefer to manage the mortgage process online or by phone.
With LTVs up to 90%, they cater to those with moderate deposits, and many products feature no arrangement fees. Overpayments of up to 10% per year are allowed, and early agreements in principle are available within minutes.
Though they don’t operate physical branches, First Direct’s customer service is often rated among the best in the sector. Their mortgages are especially appealing for tech-savvy buyers who want clarity, speed, and affordability.
| Feature | Detail |
|---|---|
| Initial Rate | ~4.60% (subject to applicant profile) |
| Revert Rate | ~6.99% |
| Max LTV | Up to 90% |
| Fee | £0–£999 (varies) |
9. Lloyds Bank
Lloyds Bank has a robust mortgage product suite offering consistent value and flexibility. Their 5-year fixed deals support LTVs of up to 95%, with several options tailored for first-time buyers and existing Lloyds customers.
Club Lloyds account holders often benefit from preferential rates or lower fees. Some deals include cashback, free standard valuations, and legal services for remortgages. Borrowers can also make overpayments and partial early repayments within set limits, adding financial control.
With a large branch network and strong online capabilities, Lloyds is ideal for those who appreciate both personal service and digital tools. It’s a strong choice for buyers looking for long-term peace of mind.
| Feature | Detail |
|---|---|
| Initial Rate | 4.68% |
| Revert Rate | 7.49% |
| Max LTV | Up to 95% |
| Fee | £1,099 |
10. Yorkshire Building Society
Yorkshire Building Society remains a trusted name in UK lending, offering fixed-rate deals that focus on reliability, simplicity, and strong customer support.
This deal is best suited to borrowers with lower LTVs (typically up to 75%), looking for predictable monthly payments over a 5-year horizon.
The building society often includes free valuations, competitive fees, and clear terms, especially for remortgages. They allow overpayments and offer decent portability under specific conditions.
Yorkshire BS is ideal for those who prefer non-corporate lenders with a more personal, regionalised approach. It’s a dependable choice for second-steppers or homeowners planning to stay put.
| Feature | Detail |
|---|---|
| Initial Rate | 4.07% |
| Revert Rate | 6.99% |
| Max LTV | Up to 75% |
| Fee | £995 |
Top 10 Best 5-Year Fixed Mortgage Comparison (October 2025)
| Lender | Initial Rate | Revert Rate | Max LTV | Arrangement Fee | Incentives & Notable Features |
|---|---|---|---|---|---|
| NatWest | 4.02% | 6.99% | Up to 95% | £1,525 | Cashback, Green Mortgages, free valuation/legal fees, fast Agreement in Principle |
| Nationwide | 4.45% | 6.74% | Up to 95% | £999 | Member deals, cashback, free valuation/legal fees, porting, overpayments |
| Halifax | 4.78% | 7.49% | Up to 95% | £1,099 | Homebuyer Cashback, free valuation/legal, 10% overpayments, strong digital tools |
| HSBC | 4.06% | 6.49% | Up to 95% | £1,016 | Portability, overpayments, fast processing, strong online tools |
| Santander | 4.51% | 6.75% | Up to 95% | £999 | Track Record Mortgage, cashback, overpayments, robust application tools |
| TSB | ~4.70% | ~7.49% | Up to 95% | £0–£995 | Free valuation/legal, low fees, user-friendly tools, overpayments |
| Virgin Money | 4.72% | 6.99% | Up to 95% | £25–£995 | Flexible Mortgage (under/overpayment options), cashback, digital-first application |
| First Direct | ~4.60% | ~6.99% | Up to 90% | £0–£999 | No-fee options, fast online application, top-rated digital service |
| Lloyds Bank | 4.68% | 7.49% | Up to 95% | £1,099 | Cashback, Club Lloyds discounts, overpayments, online & branch support |
| Yorkshire Building Society | 4.07% | 6.99% | Up to 75% | £995 | Personalised service, free valuations, overpayments, remortgage perks |
Conclusion
Choosing the best mortgage rates 5 year fixed in 2025 isn’t just about chasing the lowest initial percentage, it’s about weighing the total cost, flexibility, and lender reputation.
While sub-4% deals are available, fees and revert rates can change the long-term value. Each borrower’s circumstances are unique, and it’s essential to factor in job stability, future plans, and potential base rate shifts before locking in a deal.
Speak with a mortgage broker or adviser to assess your eligibility and access exclusive or hidden deals. And always read the fine print, sometimes the best deal isn’t just about the rate.
Frequently Asked Questions
What credit score is needed for a 5-year fixed mortgage in the UK?
Most lenders prefer a good to excellent credit score, typically above 670. However, deals vary, and specialist lenders may accept lower scores with higher rates.
Can I switch from a fixed rate before 5 years ends?
Yes, but you’ll likely incur early repayment charges (ERCs), which can be thousands of pounds. Always check the exit terms before committing.
Are fixed rate mortgages good for first-time buyers?
They’re often a smart choice as they provide payment stability during a crucial financial phase. However, flexibility and affordability should also be considered.
What happens after the fixed rate ends?
You’re usually moved onto the lender’s Standard Variable Rate (SVR), which is often significantly higher. Consider remortgaging before the term ends.
Are online mortgage brokers reliable in the UK?
Yes, many are FCA-regulated and offer access to a wide range of deals. Examples include Habito, Trussle, and Mojo. Always verify credentials.
Do fixed rate mortgage fees vary with LTV?
Yes. Lower LTV often qualifies for lower rates but might have higher fees. Each lender structures costs differently, so compare total cost of borrowing.
Should I choose a 2-year or 5-year fixed mortgage?
It depends on your financial stability and market predictions. A 2-year may offer short-term savings, but a 5-year provides longer protection.
