The Best Mortgage Deals Without A Fee | moneyfacts.co.uk

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Derin Clark

Derin Clark

Online Reporter
Published: 14/01/2021

Although locking into a new mortgage deal can reduce monthly repayments, especially if the borrower is currently on the lender’s standard variable rate (SVR), it can result in having to pay additional costs. Mortgage borrowers looking to reduce the cost of locking into a new mortgage deal may want to consider a mortgage that does not charge a product fee, which on some deals, can add over £1,000 to the mortgage.

To help borrowers find the best mortgage deal that does not charge a product fee, below we’ve highlighted the lowest rates available on two and five year fixed deals that do not have any product fees in our remortgage, moving home and first-time buyer charts.

Although the interest rate is important when considering a mortgage deal, borrowers should be aware that the lowest rate available may not be the right option for their needs and, as such, should consider speaking to a mortgage broker to find the best deal of their individual circumstances.

The lowest remortgage rate without a fee

Two year fixed remortgage deals

The lowest two year fixed remortgage deal that does not charge a fee comes from Halifax, which offers 1.36% (3.2% APRC) fixed until 28 February 2023 and then reverts to 3.59% variable. This deal is available at a 60% loan-to-value (LTV), but borrowers should be aware that it requires a minimum mortgage loan of £250,000. As well as not charging a product fee, this deal also has the incentive of free valuation and free legal fees.

The next lowest rate on a two year fixed remortgage deal with no product fees is from Coventry Building Society. This deal, offers 1.45% (3.9% APRC) fixed until 31 March 2023, after which it reverts to 3.99% variable, and is available to those looking for a 50% LTV. In addition to the incentive of no product fees, this deal also has free valuation (up to a maximum of £700) and free legal fees.

The lowest remortgage rate at a 75% LTV that does not charge a fee is being offered by Halifax. This deal offers 1.64% (3.3% APRC) fixed until the 28 February 2023, which then reverts to 3.59% variable. As with the 60% LTV deal, it is only available to those looking to borrow a minimum of £250,000. Along with not charging a product fee, this deal also has a free valuation and free legal fees.

Five year fixed remortgage deals

Halifax also had the lowest rate in the five year fixed remortgage chart on a deal without a product fee, which was in fact the same rate as the two year fixed remortgage deal at a 60% LTV. This deal, which also is available to those looking for a 60% LTV, offers 1.36% (2.8% APRC) fixed until 28 February 2026, reverts to 3.59% variable thereafter. As with the two year fixed deal, a minimum mortgage loan of £250,000 is needed for this deal, which also has the incentive of free valuation, along with no product fee and free legal fees.

Coventry Building Society had the next-lowest five year remortgage rate on a deal without any product fees. It offers 1.59% (3.4% APRC) fixed until 31 March 2026 and then reverts to 4.49% variable. As well as no product fees, this deal also has the incentive of free valuation (up to a maximum of £700) and free legal fees.

Halifax also had the lowest rate on a five year fixed deal without fees at a 75% LTV. This deal had the same rate as the 75% LTV two year fixed deal, offering 1.64% (2.9% APRC) fixed until 28 February 2026 and then reverts to 3.59% variable. Along with no product fees, it comes with the incentive of free valuation and free legal fees.

To see how these deals compare to mortgages that charge a fee, visit our two and five year fixed remortgage charts.

The lowest moving home mortgage rate without a fee

Two year fixed moving home deals

Homeowners looking to get a moving home mortgage will find that the lowest two year fixed mortgage rate on a deal without product fees comes from Halifax. The deal offers 1.56% (3.3% APRC) fixed until 28 February 2023, after which it reverts to 3.59% variable. This is available to those looking for a 60% LTV and requires a minimum mortgage loan of £250,000.

The next-lowest two year fixed moving home mortgage rate on a deal that does not charge product fees comes from West Brom Building Society, which offers 1.59% (3.6% APRC) fixed until 30 April 2023 and then reverts to 3.99% variable. This deal is available to those located in England and Wales with a 60% LTV. Along with the incentive of no product fees, this deal also includes free valuation (up to a maximum of £740).

The lowest rate on a deal at 75% LTV and without postcode opening restrictions comes from first direct, which offers 1.89% (3.3% APRC) gross fixed for two years, which then reverts to 3.54% variable. In addition to the incentive of no product fees, this deal also includes free valuation.

Five year fixed moving home deals

Home movers looking to lock into a five year fixed deal without paying a product fee will find that an AIB ‘Green’ mortgage currently has the lowest rate. It offers 1.69% (3.1% APRC) fixed until 28 February 2026 and then reverts to 3.80% variable. This deal is available at a 60% LTV for those homes that meet an agreed standard of energy efficiency. As well as charging no product fees, it comes with the incentive of free valuation and £2,000 cashback for those borrowing a minimum of £65,000.

The next lowest moving home rate on a deal with no product fees is from first direct, offering 1.74% (2.9% APRC) fixed for five years, which then reverts to 3.54% variable. This deal is available at a 60% LTV and, as well as no product fees, has the incentive of free valuation.

The lowest five year moving home rate at a 75% LTV on a deal without product fees is being offered by AIB. This deal offers 1.84% (3.2% APRC) fixed until 28 February 2026 and then reverts to 3.80% variable. This deal not only has the incentive of no product fees, but also includes free valuation and £2,000 cashback for those borrowing £65,000 or more, again for those whose home meets the agreed energy efficiency standard.

To see how these deals compare to mortgages that charge a fee, visit our two and five year fixed moving home charts.

The lowest first-time buyer mortgage rate without a fee

Two year fixed first-time buyer deal

As the first-time buyer mortgage market remains highly challenging for those with a low deposit, there are not many deals available that do not charge product fees. First-time buyers should be aware that there are more options available if they have a larger deposit than 10%, but for those looking for a 90% LTV deal, the lowest rate that does not charge product fees comes from Nationwide Building Society. This deal charges 3.49% (3.6%) fixed for two years and then reverts to 3.59% variable. In addition to no product fees, it offers the incentive of free valuation and £500 cashback.

Five year fixed first-time buyer deal

Although lower rates may be available for first-time buyers with a deposit of more than 10%, the lowest rate on a deal without product fees is from Barclays Mortgage on a deal at 95% LTV. This deal offers 3.25% (2.9% APRC) fixed until 31 May 2026, after which it reverts to 2.59% variable. This is a springboard mortgage deal, which means that the borrower needs help from a family member to qualify for the mortgage. As well as not charging a product fee, this deal includes the incentive of free valuation on properties valued to a maximum of £2 million.

To see how these deals compare to mortgages that charge a fee, visit our two and five year fixed first-time buyer charts.

Disclaimer

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