Best mortgage rates of April 2025

Chris Sykes, mortgage consultant for Private Finance, said: “It’s important, especially for first-time buyers, to understand how mortgage rates are tiered.” Certain factors will affect the rates available to you. For example, workers who are self-employed or receive much of their income as bonuses may not be able to access the best rates.

The size of your deposit also makes a huge difference to the rates lenders will offer you. “Generally, with every additional 5pc deposit that you put forward, you get a better rate. The longer the mortgage takes, the lower your monthly payments will be. But ask yourself if you want to be paying this in your 70s,” Mr Sykes said.

If you want flexibility and don’t want to lock in a long-term rate – for example, if you plan to sell up or believe interest rates will fall – then a two-year fixed-rate mortgage might be for you. If you want to protect yourself from the turbulence of interest rates for longer, or you think they might rise, then guaranteeing a rate for five or even 10 years could be a better option.

A variable-rate mortgage might suit you if your plans don’t suit committing to a fixed-term deal (perhaps you’re planning to move house soon, for example), or if you think you could get a cheaper deal than fixes can offer – for example, opting for a variable tracker mortgage ahead of Bank Rate cuts.

Alex Ogario, of Knight Frank, said: “Compared with a two-year fixed rate, a five-year fixed product will tie you in for longer. However, you’ve secured a rate for that time. So if you want to have more stability, do not need more flexibility and don’t want to be exposed to interest rate volatility for this period, then it might be a good idea to lock in a rate now and not have the risk for the next five years.

“However, shorter and longer fixed terms are available, so finding a suitable option that’s tailored to your specific needs should be the aim.

“The choice between a two-year and five-year fixed rate often depends on the person’s risk appetite. Some people don’t want to be exposed to volatility but then others want to keep options open and be able to change course if needed. There is no one-size-fits-all option here and it is also determined by other variables, such as requirements for flexibility and future expectations of interest rate movements.”

Mortgage brokers can help you get a better mortgage as they often have access to cheaper deals than you may be able to find yourself.

They can also alleviate some of the stress involved with buying a house. If you’re self-employed or are struggling to find a lender who will approve your application, it might be a good idea to speak to a broker.

Mr Ogario said: “With the volatility and uncertainty that we’re seeing in the market, people should be doing their due diligence more than ever and taking advice from experienced and qualified experts.

“Don’t go to the shop without your wallet, which means don’t find a property without having done any research on finance. Often our most successful and sophisticated clients from a financial perspective are the ones who ask the most questions.”

There is no specific minimum salary to get a mortgage, but how much you earn affects how much you can borrow, as lenders want to ensure you can afford the repayments. As a general rule of thumb, lenders will allow you to borrow up to 4.5 times your annual income, although some will be more generous.

Remember that income is not the only factor taken into consideration; your deposit and outgoings also make a difference.

Broaden your horizons with award-winning British journalism. Try The Telegraph free for 1 month with unlimited access to our award-winning website, exclusive app, money-saving offers and more.