Mortgage Rates Fall Below One Per Cent | will never contact you by phone to sell you any financial product. Any calls like this are not from Moneyfacts. Emails sent by will always be from Be Scamsmart.

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Derin Clark

Derin Clark

Online Reporter
Published: 19/05/2021

Homeowners looking to remortgage can now get a rate of below 1.00%, with two mortgage lenders offering mortgages at 0.99%.

TSB and Hinckley & Rugby Building Society both have mortgage deals offering rates of 0.99%.

TSB offers 0.99% (3.2% APRC) on a two year fixed deal, which is available at a 60% loan-to-value (LTV) and charges £1,495 in product fees. Hinckley & Rugby Building Society offers 0.99% (4.5% APRC) as a two year discounted variable, which is also available at a 65% LTV and requires a minimum loan of £100,000. It charges £699 in product fees.

How much will you repay with a 0.99% mortgage rate?

Choosing a mortgage offering 0.99% can significantly reduce mortgage repayments, even with today’s highly competitive mortgage rates.

For example, a homeowner with a property valued at £350,000, who is looking to remortgage at 60% LTV on a 20-year term, would have mortgage repayments of £964.84. If the same homeowner remortgaged at the next lowest rate in the two year fixed remortgage chart, which is 1.04% (3.9% APRC) being offered by Platform, they would have monthly repayments of £969.53. This is £4.69 per month more than the repayments at 0.99% and over the two years the homeowner would be paying an extra £112.56.

If the same homeowner was to remortgage at a rate further down the chart of 1.33%, this would result in monthly repayments of £997.01. This is £32.17 more per month than repayments at 0.99% and, over a two-year period, would be an extra £772.08.

Clearly, with mortgage rates below 1.00% now available, homeowners coming to the end of their mortgage deal or who are already on their lender’s standard variable rate (SVR) should consider remortgaging to see if it will lower their monthly repayments.

Use our mortgage repayment calculator to see how much you can save by remortgaging onto a new mortgage deal.

When is it not a good idea to remortgage?

Although remortgaging at a time when rates are competitively low may help to reduce monthly mortgage repayments, there are times when remortgaging is not the right option for homeowners. For example, homeowners who are currently in the middle of a mortgage deal may find that the cost of exiting the deal early counteracts any savings that can be made from remortgaging at a lower rate. Alternatively, homeowners who are planning to move home within the next year may want to reconsider remortgaging as it could result in them being locked into a mortgage deal that cannot be transferred to the new property and that will be costly to exit early. For homeowners considering remortgaging, it may be worthwhile speaking to a mortgage broker first, as they will not only be able to highlight the most competitive deals on the market, but will also be able to advise whether remortgaging is the right option for their current circumstances.

Find out more and compare the best remortgage deals.


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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