Bank of England cuts interest rate for second time this year

Finding the best mortgage rates in a sea of mortgage deals is hard work. So every month we’ll be showcasing the best mortgage deals for you, with input from the mortgage experts at L&C.

Best mortgage rates November 2024

The Bank of England has cut interest rates for the second time this year, from 5% to 4.75%. However, and rather confusingly, mortgage rates may increase in the short term.

Ahead of the Bank’s announcement, experts had warned that despite the widely-predicted cut in interest rates, the cost of fixed rate mortgages could rise in the aftermath of October’s budget because of the expectation that interest rates will remain higher for longer pushing up costs to lenders. Skipton Building Society and Coventry Building Society have both announced fixed rate increases.

While the medium-term direction of interest rates is still expected to be down, we can expect a period now when more lenders may have to rethink their rates.

So the key message this month is: shop around for the best mortgage deal and act fast. You can do this up to 6 months in advance – and you should certainly do it by 3 months before your current deal ends. You can apply for a mortgage and lock in a rate then keep it under review to make sure you don’t miss out on a better mortgage rate before you need to switch. Get in touch online or on the phone today to kick things off.

If you’re a first time buyer, the chances are you’ll want to look for mortgage products better suited to you. Read our Best first time buyers mortgage rates guide – we bring you the best current mortgage rates in the UK whatever your deposit size, from 0% to 40%.

Best 2 year fixed rate mortgage

• Santander’s 2 year fixed rate at 3.96%. Scheme fees: £999. Max LTV 60%. Purchases only.
• Barclays’ 2 year fixed rate at 4.03%. Scheme fees: £948. Max LTV 60%. For remortgages.

The best mortgage rates on 2 year fixed rate mortgages are down this month for remortgages compared to last month when the best rate was from Coventry Building Society at 4.08%. But the best mortgage rate on 2 year fixed deals for purchases is up slightly; the best mortgage rate for purchases last month was also from Coventry Building Society but at 3.89%.

Best 3 year fixed rate mortgage

• Santander’s 3 year fixed rate mortgage at 3.92%. Scheme fees: £999. Max LTV 60%. Available for purchases only.
• Santander’s 3 year fixed rate mortgage at 4.04%. Scheme fees: £1,048. Max LTV 60%. For remortgages.

The best mortgage rates have nudged up this month for a 3 year fix for both purchases and remortgages. Last month, Coventry Building Society offered a 3 year fixed rate mortgage at 3.79% for purchases and 3.98% for remortgages.

Best 5 year fixed rate mortgage

• AIB’s 5 year fixed rate mortgage at 3.79% Scheme fees: £200. Max LTV 60%. For purchases and remortgages.

While for 5 year fixed rate mortgages, the best rate this month is lower than last month for remortgages when NatWest offered a 5 year fixed rate mortgage at 3.82%. But the best mortgage rate for purchases this month is slightly higher than last month when Coventry Building Society offered a rate at 3.69%.

Best 10 year fixed rate mortgage

• Santander’s 10 year fixed rate mortgage at 4.49%. Scheme fees £999. Max LTV 60%. Purchases only
• Santander’s 10 year fixed rate mortgage at 4.64%. Scheme fees: £1,048. Max LTV 60%. For remortgages

The best rates on 10 year fixed rate mortgages have improved slightly compared to last month when Nationwide offered a 10 year fixed rate mortgage at 4.72% for remortgages and 4.54% for purchases.

Best variable rate mortgages

• Newbury Building Society 4.64% (2.11% discount for 3 years). Scheme fees: £0. Max LTV 75%.

If you’re looking for the best mortgage rates on a variable rate mortgage, the best rate this month is the same as last month. Although you must remember that the rate you pay on variable rate deals can go up or down, unlike fixed rate mortgages.

Best Buy to Let mortgages rates

• Fixed: West One 2.34% 2 year fix. Max LTV 55%. Scheme fees 9.99%.
• Variable: Monmouthshire Building Society 3.49% discount for 2 years at 4.9%. Max LTV 75%. Scheme fees 2%.

With Buy to Let mortgage rates, the best rate on a fixed rate mortgage is the same this month. But bear in mind West One charges huge scheme fees so make sure you get advice from a fee-free broker to find the best deal overall. While the best rate for a variable rate deal is also the same as last month.

Best Green Mortgage rates

Looking for a green mortgage? HSBC offers a 2 year fixed rate green mortgage at 4.16%, it’s available up to 85% LTV and comes with a £999 fee, free standard valuation and £1,600 cashback. It’s available for purchases, where the property has an Energy Performance Certificate (EPC) rating of A or B

Should I remortgage now?

Yes. If your current mortgage deal ends in the next 6 months, and certainly if it ends in the next 3 months, you should start the remortgage process now. With experts warning the best UK mortgage rates could disappear with very little notice, you should act now so you don’t miss out. 

Being ready with your next move before your current deal comes to an end also means you’ll avoid your mortgage rolling onto your lender’s Standard Variable Rate which are averaging an eye-watering 7.99%. 

The best mortgage rates are changing fast. For the latest deals and fee-free mortgage advice speak to our partners. Start online or give them a call today about your mortgage needs

When will UK mortgage rates come down?

It’s very difficult to make an accurate mortgage rate forecast as this will depend on numerous factors. As a general rule: if interest rates fall, the mortgage rate forecast would be for mortgage rates to fall too. But despite seeing interest rates being cut this month, experts are warning that fixed mortgage rates may increase.

However, looking further ahead, as experts predict interest rates will continue to be cut next year, we would expect mortgage rates to come down.

What’s the average mortgage interest rates?

On 7 November 2024, the average 2 year fixed mortgage rate at 60% LTV was 4.10%, while the average 5 year fixed mortgage rate at 60% LTV was 4.02%, according to figures from Rightmove.

How much is the average standard variable rate?

The average standard variable rate in November 2024 was 7.99%. The standard variable rate is the default rate you’ll roll onto when your mortgage deal ends. But SVRs vary widely by lender. For example Newcastle Building Society’s SVR is currently 6.94% while Aldermore’s SVR is 9.53%. Read more in our guide Should you ditch your Standard Variable Rate mortgage?

So while the best mortgage rates on offer this month may seem high compared to what has been available in recent years, your lender’s Standard Variable Rate (SVR) could be significantly higher.

Looking for the cheapest mortgage rates? Speak to our fee-free brokers  — start the process online or speak to an advisor today.

How to find the best mortgage deal

If your current mortgage deal ends in the next six months you should act now to find the best mortgage deal because the best mortgage rates could disappear quickly.

When it comes to finding the best mortgage rates this month, here’s our advice:

• Whether you’re remortgaging or buying a house, don’t just go to your bank for your mortgage. It’s more important than ever to shop around for the best mortgage rates. Speaking to a fee-free mortgage broker is the quickest and easiest way to find the lowest mortgage rates.
• Beware of hanging on expecting better mortgage rates: The reality is even the best mortgage rates are significantly higher than we have been used to in recent years. Noone knows whether the best mortgage rates will increase or drop in the next few months. But if you secure a remortgage deal several months in advance you’ll have that in the bag while keeping your eye out for other offers before your remortgage date. Speak to a fee-free broker today to explore your options.
• However, if you’re on your lender’s standard variable rate, check your deal now to see if you can save by remortgaging as average mortgage interest rates on SVRs have soared over the last 18 months.