Home truths on tempting rates

If you're looking for a new mortgage deal, some attractive offers are available now.

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But experts warn the “cheapest” rate is rarely the most suitable. Following the Bank of England's base rate cut to 3.75 per cent in December, there's been a price war among high-street lenders. But getting the lowest interest rate doesn’t necessarily mean you're getting the best overall deal.“For those searching for mortgages independently, it’s easy to be drawn in by the headline interest rate,” says Rachel Geddes, strategic lender relationship director at the Mortgage Advice Bureau. “But the ‘cheapest’ rate is rarely the most suitable deal.

“The most common pitfall for DIY searchers is the fee-to-rate ratio. A lender might offer a highly competitive rate, but if it comes with a costly arrangement fee, you could end up paying more over the fixed term than you would with a slightly higher rate and no fee.”

And Hannah McEwen, Money Saving Expert's money editor, inset, says: “Major lenders have kicked off 2026 by cutting fixed mortgage rates. That'll come as welcome news for many of the 1.8million people whose fixes are due to end this year, especially if they locked in at a higher rate over the past few years.”