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.


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