Best mortgage rates roundup | moneyfacts.co.uk
 

Mortgage round up: the best mortgage rates in February 2019

Despite the current economic uncertainty, competition between mortgage providers remains strong, and that means whether you are a first-time buyer, want to move up the ladder or are looking to remortgage your existing home you can be sure to take advantage of some excellent mortgage rates. This round up shows the most competitive mortgage rates that were available in our best buy chart in February 2019.

The best fixed-rate mortgages

  • Best two-year fixed rate mortgage– 1.46% (65% LTV)
  • Best three-year fixed mortgage – 1.75% (75% LTV)
  • Best five-year fixed mortgage – 1.96% (80% LTV)

In February, Yorkshire Building Society provided the best deal in our best buy chart with a two-year fixed mortgage rate of 1.46%, available at 65% loan-to-value. This mortgage is fixed until 31 March 2021 and comes with a completion fee of £995, and has the incentives of free valuation fees and £250 cashback.

If you have a smaller deposit of 25% then the best two-year fixed mortgage rate available in our best buy chart during February was 1.63%, again on offer from Yorkshire Building Society. This is also fixed until 31 March 2021 and has the same completion fee and incentives, though this time with a higher cashback offer of £500.

The top  rate in our chart for a three-year fixed deal was offered by HSBC at 1.75%, available at 75% loan-to-value. This deal remains fixed until 30 April 2022 and comes with a booking fee of £999, though it has the incentive of a free valuation and remortgagors get legal fees covered as well.

For those looking to secure their mortgage rate for five years or more, Yorkshire Building Society had the best five-year fixed rate in our chart of 1.96%, fixed until 31 March 2024. To get this deal, mortgage borrowers would need a 25% deposit and would have to pay an arrangement fee of £995, though they can benefit from the incentives of free valuation and £500 cashback.

For borrowers with a lower deposit, HSBC offered a 90% loan-to-value five-year fixed mortgage rate of 2.29%, which runs until 30 April 2024. This deal charged a booking fee of £999 and included the incentives of a free valuation as well as free legal fees for remortgagors.

The best variable rate mortgages

  • Best lifetime variable mortgage – 2.05% (65% LTV)

Coventry Building Society offered the best variable mortgage rates in our best buy chart during February. Its lowest rate was 2.05% that required a 35% deposit, while for a 25% deposit it was offering a 2.15% rate, for a 15% deposit a rate of 2.25% and for a 10% deposit a rate of 2.39%. All these deals charged an arrangement fee of £999, and included the incentives of free valuation fees (to a maximum of £670) and free legal fees for remortgagors.

The best remortgages

Last month Moneyfacts.co.uk reported that the number of homeowners remortgaging had increased year-on-year. Although remortgage rates across the market have increased slightly, lenders have been focused on offering additional incentives to existing homeowners beyond rate reductions.

  • Best two-year remortgage rate – 1.58% (60% LTV)

During February Skipton Building Society provided one of the most competitive remortgage rates of 1.58%. This two-year variable rate deal required a deposit of 40% and included the incentives of free valuation fees and for remortgagors free legal fees, and as an added bonus there are no arrangement fees to pay whatsoever.

For those looking for a fixed remortgage rate, the lowest came from HSBC, which was offering a rate of 1.64% that remained fixed until 30 April 2021. This deal required a lower deposit of 20% but did charge a booking fee of £999, though it came with the incentives of free legal and valuation fees.

Alternatively, one of the best remortgage rates with the lowest deposit and the longest fixed term came from M&S Bank, which was offering a 2.04% fixed rate until 30 April 2024. This five-year deal required a deposit of just 15% and charged a booking fee of £995 and a reservation fee of £99, however the incentives of free valuation and legal fees should go some way to offsetting these.

The best first-time buyer mortgages

The number of first-time buyers was at a 12-year high last month, and this has driven increased competition for those with a lower deposit.

  • Best first time buyer mortgage rate – 1.99% (95% LTV)

In February, The Loughborough Building Society was offering the lowest first-time buyer mortgage rate of 1.99%, a two-year discounted variable rate deal that required a minimum deposit of 5% and charged a completion fee of £999.

Alternatively, first-time buyers looking for more security had a number of fixed rate options to choose from as well, one of the most competitive of which coming from Barclays at a fixed rate of 2.88% until 30 April 2021. To get this rate first-time buyers needed a deposit of just 5% and could benefit from the incentives of free valuation and no arrangement fees.

 

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