The Lenders Offering Sub 1 Per Cent Mortgage Deals | moneyfacts.co.uk

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Derin Clark

Derin Clark

Online Reporter
Published: 29/07/2021

Competition within the remortgage and moving home mortgage charts has grown rapidly within the last month with more lenders than ever offering sub-1% two year fixed mortgage deals. In fact, there are now 10 remortgage two year fixed deals that offer a sub-1% rate and there are now eight sub-1% deals in the two year fixed moving home chart.

Why are lenders offering sub-1% mortgage deals?

Mortgage lenders may be reducing rates to historic lows in response to a slowing down of the mortgage market, which is potentially seeing a fall in borrowers on lender’s mortgage books. As a response, lenders may be aiming to attract new borrowers by offering highly competitive rates. Rachel Springall, finance expert at Moneyfacts.co.uk, added: “The sub-1% mortgages to surface have grabbed the spotlight as lenders drop their rates to bring in new business after the market endured an unsettled period due to the pandemic. Genuinely a deal with a low rate and high fee may only be suitable for someone with a substantial mortgage and who can meet the eligibility criteria. If borrowers were to approach a broker and assess the deal based on true cost, they may well find they are better off elsewhere on a deal with a slightly higher rate but with a more reasonable fee and incentive package. It really does depend on their circumstances and what they are looking to borrow, so seeking advice is wise.

“There is much more scope for lenders to cut pricing in the higher loan-to-value sectors but we have only recently seen product choice grow in this area of the market, after a significant drop due to the pandemic. With this in mind, it may be a few weeks yet before lenders consider slashing their rates on higher loan-to-value mortgages and instead they may well just maintain their presence in the market or make minor tweaks for borrowers who have been waiting for deals to return.”

What providers are offering sub-1% mortgage deals?

Many high street mortgage lenders are now offering sub-1% two year fixed mortgage deals including Nationwide Building Society, NatWest, Royal Bank of Scotland and HSBC.

Nationwide Building Society currently offers the lowest rate in both the remortgage and moving home chart with its deal offering 0.91% (3.2% APRC) fixed for two years. Both deals are available at a 60% loan-to-value (LTV) and have a product fee of £1,499. The remortgage deal requires borrowers to take a minimum loan of £300,000 and the moving home deal requires borrowers to take a minimum loan of £275,000. Nationwide Building Society also has a deal in both the remortgage and moving home charts offering 0.94% (3.2% APRC) fixed for two years and then reverts to 3.59%. These deals are also available at a 60% LTV but charge a lower product fee of £999. A minimum loan of £25,000 needs to be taken for this deal.

NatWest has a two year fixed remortgage deal offering 0.94% (3.2% APRC) fixed until 30 November 2023, which reverts to 3.59%. This deal is available to those with a 60% LTV and charges £995 in product fees. Borrowers can apply directly for this deal here. NatWest Int Sols, which offers mortgages only available through a mortgage broker, has a moving home deal offering a slightly lower rate of 0.93% (3.1% APRC) fixed until 30 November 2023 and then reverts to 3.59%. This deal is available at a 60% LTV and charges £995 in product fees. NatWest Int Sols also has a remortgage deal offering 0.94% (3.2% APRC) fixed until 30 November 2023 and then reverts to 3.59% and a moving home deal available offering 0.94% (3.2% APRC) fixed until 30 November 2023, which reverts to 3.59%. Both deals are available at a 60% LTV and charge £995 in product fees.

Royal Bank of Scotland has a remortgage deal offering 0.94% (3.2% APRC) fixed until 30 November 2023, after which it reverts to 3.59%. This deal is available to those with a 60% LTV and charges £995 in product fees. It can be applied for directly here.

HSBC has a remortgage and moving home deal also offering 0.94% (3.1% APRC) which is fixed until 30 November 2023 and then reverts to 3.54%. It is available at a 60% LTV and charges £999 in product fees.

Other mortgage lenders offering sub-1% mortgage deals

  • TSB has a remortgage deal offering 0.94% (3.2% APRC) fixed until 30 November 2023 and then reverts to 3.59%. This deal is available at a 60% LTV and charges £995 in product fees. TSB also has a moving home deal offering 0.99% (2.3% APRC) fixed until 30 November 2023, which reverts to 2.59%. It is available at a 60% LTV and charges £995 in product fees.
  • Platform, which is part of the Co-operative Bank, has a remortgage and moving home deal offering 0.95% (3.8% APRC) fixed until 30 September 2023, after which it reverts to 4.34%. This deal is also available at a 60% LTV. It charges £1,499 in product fees.
  • Cumberland Building Society has a remortgage deal offering 0.98% (3.7% APRC) fixed until 1 October 2023 and then reverts to 4.09%. This deal is available at a 60% LTV and is only available to those within the Northumberland, North Lancashire, Dumfriesshire and Cumbria areas. It charges £1,999 in product fees.
  • Progressive Building Society has remortgage and moving home deals that offer 0.99% (3.9% APRC) fixed for two years and then reverts to 4.35%. Both deals are available at a 60% LTV and are only available to those living in Northern Ireland. They charge £995 in product fees.

For more information about all these deals, including incentives and flexible features, visit our remortgage and moving home comparison charts. Alternatively, homeowners can speak to a mortgage broker for more information about these deals and for advice about which option is best for their needs. Readers of Moneyfacts.co.uk can speak to a mortgage broker for free using our preferred broker Mortgage Advice Bureau.

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