Derin Clark

Derin Clark

Online Reporter
Published: 06/09/2019

First-time buyers can get £1,000 cashback on a new mortgage deal that has been launched by Santander today.

Santander has added three fixed rate products for first-time buyers, including a two-year fixed rate deal with a rate of 3.19% fixed until 2 December 2022 and available up to a 95% loan-to-value (LTV). This deal has no product fees and includes the incentives of free valuation, as well as, a £1,000 cashback. The first-time buyer chart is highly competitive at the moment, with Newcastle Building Society offering the lowest rate of 2.59% fixed until 31 October 2021, available on a 95% LTV, which charges £498 in product fees, but it doesn’t include any incentives.

New two-year fixed rate remortgage deals

Another provider that has announced new deals today is TSB, which has introduced two new fixed rate deals, including a five-year deal with a rate of 1.84% fixed until 30 November 2024 on a 85% LTV and, although it charges a product fee of £1,495, it includes an attractive incentive package of free valuation and a choice of either £300 cashback or no legal fees. This deal offers the lowest rate in its sector, however it is only available via selected intermediaries. Homeowners interested in this remortgage deal can speak to a mortgage broker here

HSBC drops fixed mortgage rates

Earlier this week HSBC reduced rates on a number of fixed rate deals, including its three-year fixed rate deal, which is now offered at a rate of 1.49% fixed until 31 January 2023, available on a 75% LTV. This is now the lowest rate offered on a 75% LTV in our three-year fixed moving home chart. It charges £999 in product fees and includes the incentive of free valuation.

Commenting on the new deals that have been launched, Rachel Springall, finance expert at Moneyfacts.co.uk, said: “This mortgage rate war has created the perfect landscape for borrowers looking for a new deal, whether they are house purchase customers or those looking to remortgage. Lenders are not only competing on rate, but they are also bundling together attractive incentive packages too. This is why it’s important for consumers to compare the overall packages to find the right deal for them.

“Where possible, borrowers would be wise to take advantage of the low interest rates on mortgages and attempt to overpay to build up more equity and reduce their mortgage term. Doing this can move borrowers into a lower LTV bracket and enable them to find a cheaper mortgage, which can lower their monthly repayments when they refinance.”

Disclaimer

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.

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