Reports have confirmed that total mortgage lending for June increased from May's figures and the number of mortgages approved for house purchase also increased. It is a good sign that lending may have bottomed out, although rates for new borrowing remain a little high. Here is a selection of the better deals.
2 year fixed rate mortgage – NatWest Mortgage Services
Two year fixed rate mortgage products have been the preferred option for many over the past few years. NatWest Mortgage Services offers a deal at 3.69 per cent fixed to 31 August 2011, which reverts to a standard variable rate of 4.00 per cent. The product is available to those who can raise a deposit of at least 25 per cent of the property value, either first time buyers or those moving home. This deal has a reasonable arrangement fee of £799, plus overpayments are permitted on this mortgage.
3 year fixed rate mortgage – First Direct
Interest rates are slightly higher on a 3 year fixed rate deal than on a 2 year, although the better rates can be found on deals where you are able to raise a 40 per cent deposit. First Direct offers a deal at 4.24 per cent fixed for 3 years, with a maximum loan to value of 60 per cent and an arrangement fee of £998. This product is available to all borrower types, has flexible features and an option to offset savings against the balance of the mortgage.
5 year fixed rate mortgage – Chelsea Building Society
The Chelsea Building Society has a 5 year fixed rate deal which tops the Moneyfacts.co.uk best buys at 4.80 per cent until 31 August 2014. This deal is available to a maximum loan to value of 65 per cent and has an arrangement fee of £995. The product comes with an additional incentive of a free valuation.
Variable Tracker Rate Mortgage
With base rate at a record low, there are some good value tracker rate mortgages currently on offer. HSBC has a tracker rate mortgage at 2.95 per cent for term (base rate + 2.45 per cent) with a fee of £799 payable and available to those who can raise a deposit of at least 25 per cent deposit. There is no early redemption charge payable, which allows a cheaper escape from the mortgage if base rate rises steeply.
Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.
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