FTB benefit from three-year fixed mortgage competition | moneyfacts.co.uk
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nigel woollsey

Nigel Woollsey

Online Writer
Published: 29/01/2020

Competition for first-time buyers has increased with Hinckley & Rugby Building Society reducing the rate on its three-year fixed mortgage at 95% loan-to-value (LTV).

The rate on Hinckley & Rugby’s fixed mortgage is now 2.88%, down from 3.24% and there are no product fees, free valuation on properties under £1 million and free legal fees for those remortgaging. After the three-year term, the rate reverts to a discounted variable rate of 4.49% for a further two years before moving to an existing borrowers’ rate of 6.14% variable. The APRC is 5.1%.

This product is now the fifth-lowest rate in our first-time buyer comparison chart for three-year fixed deals at 95% LTV. Borrowers who are happy to pay a product fee can find lower fixed rates, however:

Bath Building Society – 2.59% fixed and 2.69% fixed reverting to an existing borrowers’ rate of 5.44% variable (4.9% APRC). However, the 2.59% deal requires a minimum income of £35,000. The product fee is £872 and this mortgage offers payment holidays.

The Family Building Society – 2.84% (4.1% APRC) fixed to 31 May 2023 before reverting to 5.04% variable for the remainder of the term. This is a Family Offset mortgage that carries a lower product fee of £599, with free valuation for properties up to £500,000 and the choice of either free legal fees or £250 cashback. This deal is not available to those looking to remortgage.

West Brom Building Society – 2.84% (4.1% APRC) fixed to 31 March 2023 before reverting to 4.49% variable for the rest of the term. Just as with Hinckley & Rugby’s deal, this offer has the very attractive bonus of no product fees, as well as free valuation up to £740.


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 Any products featured may be withdrawn by their provider or changed at any time.

man handing keys to new homeowner


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