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

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Michael Brown

Content Writer
Published: 18/05/2022

Last updated: 18th May 2022

Cumberland BS withdraws its range of cheaper deals with a high fee of £1,999.

The latest UK House Price Index this morning recorded the average UK property price at £278,436, almost a 10% increase from the same time last year.

The findings are not unusual. Recent findings from other research have returned similar results, attributing the rise to consistent strong demand.

Therefore, consumers in the market for a mortgage, whether it be a first-time buyer or a remortgage borrower, could be looking for a fixed-rate mortgage to give themselves some peace of mind over their future payments. To help those searching for such a mortgage, we have highlighted some of the lowest rates on the market. 

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

Once again, we start this week’s mortgage round-up with Cumberland BS at the top of the two year remortgage chart. However, what has changed from last week is its high-fee range has been withdrawn, leaving higher rate products with lower fees of £999. As an incentive, the offer includes a free valuation and legal fees. For financing up to 85% of your property instead, Cumberland BS will adjust its rate 0.05% upwards. While the rate may change, all the same product fees and incentives will still apply.

Taking top spot on the three year chart this week is Nationwide BS. Its offer comes with a choice of incentives, which include either £500 cashback when your mortgage completes or free legal fees. In addition, the mortgage includes a free valuation fee. If you require greater financing on your property, then you can expect a rate of 2.44% from the high-street provider. This rate is available to finance up to 75% of your property, but it does come with the same incentives and product fees as its offer at 2.39%.

Finally, Cumberland BS takes top spot on the five year chart with a mortgage that includes a free valuation and legal fees as incentives. However, for those who will need to finance up to 75% of their property, it may be worth considering Lloyds Bank’s five year fixed term mortgage at 2.30%. It is important to remember that this rate will only be provided for a minimum loan of £250,000. While the product fee is also higher at £1,499, it comes with a free valuation and legal fees as incentives. Moreover, Club Lloyds current account holders can also make use of £250 cashback, possibly making its new switch offer more attractive for borrowers.

Still, the minimum loan requirement of £250,000 may be too much for some remortgage borrowers, in which case staying with Cumberland BS could be the best course of action. For increasing your loan-to-value ratio, it will up its rate to 2.33% but will maintain the same product fees and incentives as its aforementioned offer.

The best mortgage rates for home-movers

We start this week’s home-mover section with Cumberland BS, still on top of the two year fixed chart. It comes with a free valuation as an incentive and an arrangement fee which is £1,000 lower than last week’s offer. However, if you require a greater financing option, expect this rate to increase 2.23%. This mortgage can finance up to 85% of your property and comes with the same product fee and incentive.

With Barclays Mortgages increasing a number of its fixed mortgages today, Newbury BS now offers the lowest rate for three-year home-mover mortgages. The mortgage also comes with low product fees and a free valuation as an incentive. While most of England and Wales have access to a loan-to-value ratio of 75%, properties in London and the surrounding area are restricted. Newbury BS will only finance up to 60% of properties in the WC, EC, E, SE, N, NW, W and SW postcodes. As an alternative to Newbury BS, HSBC’s mortgage is available across Great Britain. At a rate of 2.54%, it can finance up to 60% of your property and includes a booking fee of £999. As the sole incentive, HSBC will include a free valuation.

To round up this week’s homemover rates, Cumberland BS continues to offer the best rate for five year fixed mortgages. Last week, it offered a rate of 2.11%, but this is now 0.15% higher. Like its other products, this deal has a lower £999 product fee compared to last week’s offering. Still, this offer only comes with a free valuation as an incentive too. It is worth noting that if you are going to exceed the maximum loan-to-value ratio of 60% then Cumberland BS will up its rate to 2.33% to finance up to 75% of your property. The same incentive and product fee still apply to this offer.  

The best first-time buyer mortgages

Both of Cumberland BS’s two and five year fixed offers at a 90% loan-to-value ratio include a free valuation as an incentive.

For those who can only afford a 5% deposit on their new home, Digital Mortgages by Atom Bank can be considered. While the offer includes a free valuation as an incentive, it is not available to anyone self-employed. Therefore, self-employed first-time buyers in England and Wales might want to consider Nottingham BS, whose rate stands at 2.82%. However, it does also include a free valuation as an incentive. The product fee, however, stands at £999.

If you are looking to fix your mortgage for a longer period, then you can also consider Digital Mortgages by Atom Bank’s offer, which includes the same incentive and restriction. Therefore, self-employed first-time buyers could consider TSB instead. This mortgage comes with a product fee of £995, a free valuation, £500 cashback and a rate of 3.04%.

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