Best UK Mortgage Deals of the Week: 20 February 2025

As the UK mortgage market continues to evolve, lenders are offering competitive deals to attract borrowers. In this article, we will explore the best UK mortgage deals of the week, as of 20 February 2025, and analyze how they align with broader economic trends and the Bank of England's base rate decisions.



1. HSBC Fixed-Rate Mortgages
* Two-year fixed-rate mortgage at 4.41% with a £999 fee (60% LTV)
* Five-year fixed-rate mortgage at 3.95% with a £999 fee (60% LTV)
2. Barclays Fixed-Rate Mortgages
* Two-year fixed-rate mortgage at 4.61% with no fee (60% LTV)
* Five-year fixed-rate mortgage at 4.23% with an £899 fee (60% LTV)
3. Yorkshire Building Society Fixed-Rate Mortgages
* Two-year fixed-rate mortgage at 4.54% with a £1,495 fee (75% LTV)
4. Coventry Building Society Fixed-Rate Mortgages
* Two-year fixed-rate mortgage at 5.14% with no fee (85% LTV)
* Five-year fixed-rate mortgage at 4.50% with a £999 fee (85% LTV)
5. First Direct Fixed-Rate Mortgages
* Five-year fixed-rate mortgage at 4.85% with a £490 fee (90% LTV)
6. Barclays Tracker Mortgages
* Two-year tracker mortgage at 5.15% with a £999 fee (60% LTV)
7. Principality Building Society Tracker Mortgages
* Two-year tracker mortgage at 5.5% with no fee (60% LTV)
* Five-year tracker mortgage at 5.55% with no fee (75% LTV)
8. NatWest Tracker Mortgages
* Two-year tracker mortgage at 6.13% with no fee (90% LTV)

These mortgage deals reflect the current state of the UK mortgage market, with competitive rates and varying fees. The availability of these deals is influenced by the Bank of England's base rate decisions and broader economic trends.

1. Base rate cuts: The Bank of England's decision to cut its base rate from 5.25% to 5% in early 2024 has contributed to lower mortgage rates. This is evident in the fixed-rate and tracker mortgage deals offered by lenders.
2. Inflation and affordability: Lower inflation and rising real wages have eased affordability constraints, leading to an improvement in mortgage affordability. This is reflected in the growth of mortgage lending and refinancing markets, as mentioned in the UK Finance and EY ITEM Club reports.
3. Mortgage market growth: The mortgage market is expected to grow in 2025, with gross lending projected to increase by 11% and lending for house purchases by 10%. This growth is supported by the best mortgage deals of the week, which cater to both first-time buyers and home movers with varying LTV ratios.
4. Remortgaging activity: As interest rates tick down, we expect arrears to continue to fall, with tailored forbearance helping those who need it. This is reflected in the best mortgage deals of the week, which include remortgaging options with lower fees and competitive rates.
5. Buy-to-let market: The buy-to-let market is expected to see a slight fall in lending in 2025, with new buy-to-let purchase lending projected to decrease by 7%. However, the best mortgage deals of the week still offer competitive rates for buy-to-let investors, with options for both new purchases and remortgaging.

In conclusion, the best UK mortgage deals of the week, as of 20 February 2025, align with broader economic trends and the Bank of England's base rate decisions. These deals offer competitive rates and varying fees, catering to the growing mortgage market and providing options for first-time buyers, home movers, and buy-to-let investors. As the mortgage market continues to evolve, it is essential to stay informed about the latest deals and trends to make the best decision for your financial situation.