Mortgage experts tell LISA SALMON what the best deals are currently, and what borrowers should bear in mind

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

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But experts warn that the “cheapest” rate is rarely the most suitable.

Financial experts say that following the Bank of England’s base rate cut to 3.75% in December 2025, there’s been a significant price war among high-street lenders for the start of this year.

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. “However, 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, says: “Major lenders have kicked off 2026 by cutting fixed mortgage rates. That'll come as welcome news for many of the 1.8 million people whose fixes are due to end this year.”

She says overall, mortgage deals have been edging down recently. In mid-January, the cheapest two-year and five-year fixed rates on the open market were around 3.5% and 3.7% respectively - lower than at any point in 2025.

“It's crucial to use a whole-of-market comparison tool, ideally one that shows deals available, both direct from lenders and via mortgage brokers, so you're not missing out on some of the best options.”