Product focus: Mortgages - Mortgages - News - Moneyfacts


Product focus: Mortgages

Product focus: Mortgages

Category: Mortgages

Updated: 11/03/2011
First Published: 11/03/2011

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.
In the last few months the cost to lenders of funding mortgages through the swap rate market has risen as the market anticipates a rise in bank base rate in the coming months. This rise is factored in to fixed rate mortgages and rates have risen, but there are still competitive deals to be found. By contrast rates average rates on tracker mortgages have fallen to an all time low, but borrowers must remember that they will not be protected from future rises in base rate and must factor this in to the true cost of any new deal.

HSBC – Two Year Discounted Variable

  • The lowest rate on the market is currently being offered by HSBC, who have a two year discounted variable mortgage charging 1.99%.
  • The deal is available to borrowers with a 40% deposit and is subject to a £999 arrangement fee.
  • Incentives of free legal fees are available with the mortgage.

Yorkshire Building Society – Five Year Fixed

  • The five year fixed rate mortgage market has seen some of the biggest increases in rates.
  • For borrowers with a 40% deposit one of the most competitive deals on offer is from Yorkshire Building Society who are charging 4.59%, fixed to 30 April 2016.
  • The deal is subject to a £995 fee and has a flexible option allowing overpayments.

Norwich & Peterborough Building Society – Two Year Fixed

  • Borrowers with a 15% deposit could consider the two year fixed rate deal from Norwich & Peterborough Building Society.
  • It is charging 4.18%, subject to a £995 arrangement fee.
  • The deal is available to house purchasers and remortgagers and has flexible options.

HSBC – Term Tracker

  • HSBC is offering borrowers with a 40% deposit a deal of 1.79% plus bank base rate for the term of the mortgage, currently 2.29%.
  • The deal is subject to just a £99 booking fee.
  • No exit fees are payable on the deal, so borrowers can move to a new deal at any time without penalty.
  • Incentives of free legal fees are available, as well as flexible features.

Find the best mortgage rate - Compare best selling mortgages

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 Any products featured may be withdrawn by their provider or changed at any time.

Related Articles

Does your mortgage lender owe you money?

Earlier this week, the financial watchdog revealed that hundreds of thousands of mortgage holders could have been overcharged by their lender. Are you one of the many who could be in line for a windfall?

Do you think your home will rise in value?

There’s been a lot of talk recently about the rate of house price growth slowing, but is it affecting your personal expectations? According to research, it could be, with fewer people now expecting the value of their property to increase.

Confidence among “second steppers” is on the rise

We all know how difficult it can be taking that first step on the ladder, but what about the second step? In many cases, getting onto the next rung can be just as challenging, but happily, confidence among this cohort appears to be on the rise.