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

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Michael Brown

Content Writer
Published: 17/08/2022

Last updated: 17th August 2022

Cambridge BS increases dominance on first-time buyer chart.

On Monday, research from real estate company Rightmove found that property prices have started to slow. However, this was attributed to seasonal trends and not economic factors.

For first-time buyers who can afford a new home, and are wishing to get onto the property ladder, now could be the perfect time. To help not only first-time buyers, but remortgage borrowers and homemovers too, we have listed some of the lowest fixed mortgage 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: 3.19% fixed to 31 December 2024 before reverting to 4.74%

    Initial period: 2 years 

    Product fee: £995

    Maximum loan-to-value: 60%

    APRC: 4.6%

     

    Representative Example: £178,000 mortgage over 25 years initially at 3.19% fixed for 28 months reverting to 4.74% variable for term. 28 monthly payments of £861.79 and 272 monthly payments of £1001.17. Total amount payable £297,823.36 includes loan amount, interest of £118,448, valuation fees of £0 and product fees of £995. The overall cost for comparison is 4.6% 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.

The mortgage roundup starts with NatWest offering the lowest rate for two year fixed remortgage deals. The high street provider’s offer comes with a free valuation and legal fees as an incentive, despite only being able to finance up to 60% of your property’s value. Therefore, those looking for an offer with a greater loan-to-value (LTV) ratio can consider first direct. Not only does this provider finance up to 80% of your property, but it also comes with a product fee of £490. Otherwise, it also comes with a free valuation and legal fees as incentives and charges a rate of 3.44%.

On the five year chart first direct, which is a division of high street bank HSBC, continues in pole position. 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 Halifax, 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 3.38%, also includes a product fee of £995. As for incentives, it provides £250 cashback for homes with an Energy Efficiency Band of A or B. To find out your home’s Energy Efficiency Band visit the Government’s website.

The best remortgage rates

The best mortgage rates for home-movers

  • Rate: 3.24% fixed to 30 November 2024 before reverting to 5.24%

    Initial period: 2 years 

    Product fee: £999

    Maximum loan-to-value: 60%

    APRC: 5.0%

     

    Representative Example: mortgage over 25 years initially at 3.24% fixed for 27 months reverting to 5.24% variable for term. 27 monthly payments of £1061.20 and 273 monthly payments of £1285.48. Total amount payable £380,717.44 includes loan amount, interest of £161,588, valuation fees of £0 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: 4.0%

     

    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.

Homemovers looking for a two year fix will find Barclays Mortgage at the top of this table. The deal comes with a free valuation as an incentive but, as an alternative, MPowered Mortgages can also be considered. This provider’s rate is just 0.03% more than Barclays Mortgage and, like Barclays Mortgage, it requires a product fee of £999, can finance up to 60% of your property and comes with a free valuation as an incentive. It is also important to note that this offer is only available through intermediaries.

It is a similar story for those looking for a five year fixed deal with homemovers considering both first direct and Halifax. The difference in these offers is that first direct only includes a free valuation as an incentive while Halifax will charge a lower rate of 3.33%.

The best first-time buyer mortgages

  • Rate: 3.39% Fixed for two years before reverting to 5.54%

    Initial period: 2 years 

    Product fee: £999

    Maximum loan-to-value: 90%

    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: 3.59% fixed for five years before reverting to 5.54%

    Initial period: 5 years 

    Product fee: £999

    Maximum loan-to-value: 90%

    APRC: 4.9%

     

    Representative Example: £159,210 mortgage over 25 years initially at 3.59% fixed for 60 months reverting to 5.54% variable for term. 60 monthly payments of £804.75 and 240 monthly payments of £950.05. Total amount payable £277,681.00 includes loan amount, interest of £117,087, valuation fees of £275 and product fees of £999. The overall cost for comparison is 4.9% APRC representative.

  • Rate: 3.59% fixed for five years before reverting to 4.54%

    Initial period: 5 years 

    Product fee: £490

    Maximum loan-to-value: 90%

    APRC: 4.3%

     

    Representative Example: £159,210 mortgage over 25 years initially at 3.59% fixed for 60 months reverting to 4.54% variable for term. 60 monthly payments of £804.75 and 240 monthly payments of £873.87. Total amount payable £258,553.80 includes loan amount, interest of £98,804, valuation fees of £0 and product fees of £490. The overall cost for comparison is 4.3% 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: £168,000 mortgage over 25 years initially at 3.49% fixed for 24 months reverting to 5.54% variable for term. 24 monthly payments of £840.15 and 276 monthly payments of £1021.95. Total amount payable £302,530.80 includes loan amount, interest of £134,222, valuation fees of £0 and product fees of £199. The overall cost for comparison is 5.3% 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.

For those who can find a 10% deposit, Cambridge BS tops the charts for both two and five year fixed deals. However, neither mortgage offer comes with incentives.

Alternatively, on the five year chart first direct shares top spot with Cambridge BS. As well as having a lower product fee than Cambridge BS this provider, which is a division of high-street bank HSBC, also includes a free valuation as an incentive.

For first-time buyers who can only commit to a 5% deposit, there is Cambridge BS’s  two year offer. The mortgageincludes a free valuation and is also an alternative option for those who can afford a 10% deposit. 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.

For the five year chart, Bath BS’s mortgage comes with no additional incentives. The deal also includes a product fee of £999, and a rate of 3.65%. As an alternative, Cambridge BS’s five year fixed offer also appears on our best buy charts at a slightly higher rate of 3.69%. Like its two year fixed deal, it has a product fee of £199 and 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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