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Michelle Monck

Michelle Monck

Consumer Finance Expert
Published: 02/06/2021

Today, Platform launched the lowest rate two-year fixed rate mortgage at 0.95% until 31 August 2023. The lender is part of The Co-operative Bank and only offers its mortgages through mortgage brokers. This new deal comes hot on the heels of a 0.99% fixed deal over two years also launched today by Nationwide Building Society. TSB launched the same rate a few weeks ago and there are now three mortgages with a rate of less than 1% fixed over two years.

Comparing the fixed rates below 1%

Platform now has the best two-year fixed rate mortgage at 60% loan-to-value (LTV) at 0.95% until 31 August 2023. After this the rate increases to 4.34% variable. The fee is £1,499 and there is free valutions and £250 cashback available. This mortgage is available to those buying their first home, moving to a new house or needing to remortgage. Remortgages also benefit from free legal fees.
Nationwide Building Society has launched a fixed rate of 0.99% at 60% LTV for two years and this is only available to homeowners looking to remortgage. After the two years the rate increases to 3.49% variable. The fee is £1,499   and there are free valuations, free legal fees and £500 cashback available.
The deal from TSB is 0.99% fixed until 31 August 2023, after this the rate increases to 3.59% variable. The fee is £1,495. This is only available to those wanting a remortgage and there are free valuation and legal fees.
Henry Jordan, Nationwide’s Director of Mortgages, said: “As the UK’s largest building society, helping people into their first home or to move to their next is a core part of what we do and that commitment to those borrowers is evidenced by these latest rate cuts. We also want to ensure that Nationwide is the first port of call for those looking for a new mortgage deal, which is why we are pleased to be able to launch a sub-1% rate for those looking to remortgage.”


Is a mortgage under 1% the cheapest mortgage deal?

Mortgage rates below 1% are undeniably attractive to those wanting to find the best mortgage rates possible. However, those adding their fees to their mortgage borrowing will find the current top deals to work out as more expensive over the initial two-year term. This is because these sub 1% mortgage deals all come with very high fees.
The most cost-effective mortgage for those needing a remortgage with a two-year term is from Barclays. It has a fixed rate of 1.08% until 31 August 2023. After this the rate increases to 3.59% variable. The fee is £999 and the mortgage offers free valuation fees. 
Those buying a new home will find the most cost-effective mortgage from Santander. It has a fixed rate of 1.13% fixed until 2 September 2023. After this it increases to 3.35% variable. The fee is £999 and there are free valuation fees up to £1,190 and £250 cashback. 

Will mortgage rates fall any further?

Those borrowers with the best credit scores, no affordability issues, and a loan-to-value of 60% or below can access competitive rates from well-known brands, such as Santander, NatWest, Skipton Building Society and HSBC. The top ten lowest fixed rate mortgages right now range from 0.95% to 1.14%. The wider market is yet to see a wholesale reduction in rates, with averages for two-year fixed deals increasing from 2.52% in January 2021 to 2.58% in June 2021. Rachel Springall from is optimistic that the market is changing for the better, commenting:

“The motivation to switch from a standard variable rate (SVR) mortgage to a fixed rate may be obvious, but what is more evident over the past few months, is the peace of mind fixing for longer may offer. Despite a rise to the average two, five and 10-year fixed mortgage rate over the past few months, it is still worth considering a new fixed deal. The volatility of interest rates is a response to the pandemic, as the mortgage market contracted whilst lenders focused on their existing customers and less so on new business. However, the situation appears to be starting to change for the better in recent weeks as both rate competition and product volumes are starting to return.”

Speak to a broker and find a competitive deal

A good mortgage broker will be up to date with the changing mortgage market and can help borrowers to secure a competitive mortgage deal. Our preferred mortgage broker is Mortgage Advice Bureau, you can request a call back or call them on 0808 149 9177.


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. 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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