Best UK Residential Mortgage Rates This Week (2022) | moneyfacts.co.uk

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Michael Brown

Content Writer
Published: 03/08/2022

Last updated: 3rd August 2022

Cumberland BS products remain competitive.

On Monday, the mortgage affordability test was officially scrapped by the Bank of England. The result is that it has become easier for some consumers to access a mortgage.

To help those looking for a mortgage, whether a first-time buyer or remortgage borrower, Moneyfacts has compiled a list of the lowest rates on the market. In addition, if these offers do not suit you, we have listed alternative products, with some making their way onto our best buy table.

Although we’ve highlighted the lowest rates across our mortgage charts, borrowers should always keep in mind that the lowest rate may not be the best, or most cost effective, deal for them. Instead, it is important to consider factors such as product fees and incentives when comparing mortgage deals, as these can have a significant impact on the cost of the mortgage. Consumers unsure of which deal is right for them should consider speaking to a mortgage broker, who will be able to provide advice on the best deal for their circumstances.

The best remortgage rates

  • Rate: 2.83% fixed to 30 September 2024 before reverting to 4.74%

    Initial period: 2 years 

    Product fee: £999

    Maximum loan-to-value: 60%

    APRC: 4.5%

     

    Representative Example: £178,000 mortgage over 25 years initially at 2.83% fixed for 25 months reverting to 4.74% variable for term. 25 monthly payments of £828.44 and 275 monthly payments of £999.67. Total amount payable £296,999.25 includes loan amount, interest of £117,620, valuation fees of £0 and product fees of £999. The overall cost for comparison is 4.5% APRC representative.

  • Rate: 3.37% fixed to 31 March 2025 before reverting to 5.19%

    Initial period: 3 years 

    Product fee: £999

    Maximum loan-to-value: 80%

    APRC: 5.0%

     

    Representative Example: £178,000 mortgage over 25 years initially at 3.37% fixed for 31 months reverting to 5.19% variable for term. 31 monthly payments of £878.75 and 269 monthly payments of £1043.76. Total amount payable £309,881.69 includes loan amount, interest of £130,013, valuation fees of £360 and product fees of £999. The overall cost for comparison is 5.0% APRC representative.
  • Rate: 3.09% fixed for 5 years before reverting to 4.54%

    Initial period: 5 years 

    Product fee: £490

    Maximum loan-to-value: 60%

    APRC: 4.1%

     

    APRC: £178,000 mortgage over 25 years initially at 3.09% fixed for 60 months reverting to 4.54% variable for term. 60 monthly payments of £852.45 and 240 monthly payments of £967.86. Total amount payable £284,303.40 includes loan amount, interest of £105,433, valuation fees of £0 and product fees of £490. The overall cost for comparison is 4.1% APRC representative.

MPowered Mortgages still offers the lowest rate for two year fixed deals this week. While this offer comes with a free valuation as an incentive, some remortgage borrowers might require a deal that finances a greater percentage of their property or is available directly. In this instance, it may be worth considering Cumberland BS, whose two year rate is fixed at 3.18%. This mortgage comes with a free valuation and free legal fees as an incentive. In addition, it contains a product fee of £999 and can also finance up to 75% of your property. 

On the three year chart Saffron BS replaces Nationwide BS on top of our charts this week. Notably, this offer does not come with any incentives and is only available through selected intermediaries, which means remortgage borrowers should also consider Loughborough BS. While this lender offers a slightly more expensive rate of 3.39%, it does include a free valuation and no product fees as an incentive. It is available through intermediaries and, compared to Saffron BS, can finance much less of your property with a loan-to-value ratio of 60%.  

On the five year chart first direct, which is a division of high street bank HSBC, takes pole position after the Post Office withdrew its mortgage range yesterday. While first direct’s offer comes with a free valuation and free legal fees as incentives, it can offer limiting financing for some applicants. This is why Cumberland BS, which appears on our best buy table, can also be considered with a loan-to-value ratio of 75%. The mortgage, which is priced at a rate of 3.22%, also includes a free valuation and free legal fees as an incentive. It has a product fee of £999.

The best remortgage rates

The best mortgage rates for home-movers

  • Rate: 2.83% fixed to 30 September 2024 before reverting to 4.74%

    Initial period: 2 years 

    Product fee: £999

    Maximum loan-to-value: 60%

    APRC: 4.9%

     

    Representative Example: £218,000 mortgage over 25 years initially at 2.83% fixed for 25 months reverting to 4.74% variable for term. 25 monthly payments of £1014.61 and 275 monthly payments of £1224.32. Total amount payable £363,102.25 includes loan amount, interest of £144,053, valuation fees of £0 and product fees of £999. The overall cost for comparison is 4.5% APRC representative.

  • Rate: 3.37% fixed to 31 March 2025 before reverting to 5.19%

    Initial period: 3 years 

    Product fee: £999

    Maximum loan-to-value: 80%

    APRC: 4.9%

     

    Representative Example: £218,000 mortgage over 25 years initially at 3.37% fixed for 31 months reverting to 5.19% variable for term. 31 monthly payments of £1076.22 and 269 monthly payments of £1278.31. Total amount payable £378,847.21 includes loan amount, interest of £159,228, valuation fees of £440 and product fees of £999. The overall cost for comparison is 4.9% APRC representative.
  • Rate: 3.09% fixed for 5 years before reverting to 4.54%

    Initial period: 5 years 

    Product fee: £490

    Maximum loan-to-value: 60%

    APRC: 4.0%

     

    APRC: £218,000 mortgage over 25 years initially at 3.09% fixed for 60 months reverting to 4.54% variable for term. 60 monthly payments of £1044.01 and 240 monthly payments of £1185.36. Total amount payable £347,667.00 includes loan amount, interest of £129,127, valuation fees of £0 and product fees of £490. The overall cost for comparison is 4.0% APRC representative.

Once again, the homemovers chart mirrors the remortgage chart this week.

For two year fixed deals borrowers can consider MPowered Mortgages and Cumberland BS for the same reasons mentioned above. The only difference is that Cumberland BS will only offer a free valuation as an incentive.

Meanwhile, homemovers will find Saffron BS and Loughborough BS’s respective three year mortgages stay the same.

Finally, first direct’s and Cumberland BS’s five year offer only includes a free valuation as an incentive.  

The best first-time buyer mortgages

  • Rate: 3.38% Fixed to 01 November 2024 before reverting to 5.24%

    Initial period: 2 years 

    Product fee: £999

    Maximum loan-to-value: 90%

    APRC: 5.1%

     

    Representative example: £168,000 mortgage over 25 years initially at 3.38% fixed for 26 months reverting to 5.24% variable for term. 26 monthly payments of £830.27 and 274 monthly payments of £992.32. Total amount payable £294,681.70 includes loan amount, interest of £125,483, valuation fees of £0 and product fees of £999. The overall cost for comparison is 5.1% APRC representative.

  • Rate: 3.39% fixed to 01 November 2027 before reverting to 5.24%

    Initial period: 5 years 

    Product fee: £999

    Maximum loan-to-value: 90%

    APRC: 4.6%

     

    Representative Example: £168,000 mortgage over 25 years initially at 3.39% fixed for 62 months reverting to 5.24% variable for term. 62 monthly payments of £831.17 and 238 monthly payments of £973.31. Total amount payable £284,379.32 includes loan amount, interest of £115,180, valuation fees of £0 and product fees of £999. The overall cost for comparison is 4.6% APRC representative.

  • Rate: 3.49% fixed for 2 years before reverting to 5.54%

    Initial period: 2 years 

    Product fee: £199

    Maximum loan-to-value: 95%

    APRC: 5.4%

     

    Representative Example: £159,210 mortgage over 25 years initially at 3.39% fixed for 24 months reverting to 5.54% variable for term. 24 monthly payments of £787.68 and 276 monthly payments of £967.77. Total amount payable £287,392.84 includes loan amount, interest of £126,799, valuation fees of £275 and product fees of £999. The overall cost for comparison is 5.4% APRC representative.

  • Rate: 3.65% fixed for 5 years before reverting to 5.75%

    Initial period: 5 years 

    Product fee: £999

    Maximum loan-to-value: 95%

    APRC: 5.1%

     

    Representative Example: £159,210 mortgage over 25 years initially at 3.65% fixed for 60 months reverting to 5.75% variable for term. 60 monthly payments of £809.91 and 240 monthly payments of £967.54. Total amount payable £282,258.20 includes loan amount, interest of £121,594, valuation fees of £255 and product fees of £999. The overall cost for comparison is 5.1% APRC representative.

Cumberland BS offers options for first-time buyers who can afford a 10% deposit.

Those looking for a two year fixed deal will find this lender offers a free valuation as an incentive. Those possibly looking for an alternative can consider HSBC, whose rate is just 0.06% more than Cumberland BS and finances up to 90% of your property. This offer also includes a free valuation, £500 cashback and a product fee of £999.

Cumberland BS’s five year fixed rate at a 90% loan-to-value ratio operates in much the same way as its two year option, including a free valuation as an incentive. As an alternative in this section of the market, Barclays Mortgage offers a rate of 3.51%, a product fee of £995, and a free valuation as an incentive.

For first-time buyers who require greater financing support, there is Cambridge BS’s two year offer. This deal has made its way onto our best buys table. It needs less than a 5% deposit and includes a free valuation. It is worth noting that Barclays Mortgages also appears on our best buy charts for first-time buyers. While its rate of 3.92% is much greater than Cambridge BS’s offer, it offers a range of incentives which include a free valuation, no additional product fees  and £750 cashback. It needs just a 5% deposit to start financing your new home.

For the five year chart, Bath BS offers a rate of 3.65% with no additional incentives. The deal includes a product fee of £999, and is not available to flats across the UK or properties with a lease in mainland Scotland. As an alternative, Cambridge BS’s five year fixed offer also appears on our best buy charts. Like its two year fixed deal, it has a product fee of £199 and can finance up to 95% of your property. As an incentive it will offer a free valuation. 

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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. Links to third parties on this page are paid for by the third party. You can find out more about the individual products by visiting their site. Moneyfacts.co.uk will receive a small payment if you use their services after you click through to their site. All information is subject to change without notice. Please check all terms before making any decisions. This information is intended solely to provide guidance and is not financial advice. Moneyfacts will not be liable for any loss arising from your use or reliance on this information. If you are in any doubt, Moneyfacts recommends you obtain independent financial advice.

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