The best mortgage rates this week 03.09.21 | moneyfacts.co.uk

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Michelle Monck

Michelle Monck

Consumer Finance Expert
Published: 03/09/2021

The mortgage market continues to see high levels of competition this week as lenders fight it out to attract the least risky borrowers with historically low interest rates. In fact, the market is becoming so heated that even first time buyer mortgage rates saw a reduction in the best two year rates available.

To help homeowners and buyers to get an idea of what type of mortgage rates are available this week, we’ve highlighted the lowest rate in our chart below. Mortgage borrowers should be aware, however, that the lowest rate may not be the best or most cost effective deal and, instead, borrowers should consider a range of factors that will impact the overall cost of the mortgage. For example, product fees and incentives can have a significant impact on the overall cost of the mortgage. Consumers unsure of which deal is right for them should consider speaking to a mortgage broker who will be able to provide advice on the best deal for their individual circumstances.

The best remortgage rates

Provider

Rate

Initial rate period

Product fee

 

TSB

0.84% fixed

Two years

£995

Speak to a broker

Nationwide Building Society 

0.89% fixed

Three years

£999

Speak to a broker

HSBC

0.96% fixed

Five years

£1,499

Speak to a broker 

 

TSB retained the lowest two year fixed rate remortgage this week. This table topping mortgage has a rate of 0.84% (3.2% APRC) fixed until 30 November 2023, which then reverts to 3.59%. This deal is available to those who own 40% equity in their home – 60% loan-to-value (LTV) – and it charges £995 in product fees. It comes with the incentive of free valuation and legal fees.


The lender offering the lowest rate three year fixed remortgage has changed this week. Nationwide Building Society now tops our three year remortgage chart with a rate of 0.89% (3.0% APRC) fixed for three years and then reverts to 3.59%. It is available to those with 40% equity in their home (60% LTV) and charges £999 in product fees. This deal has the incentive of free valuation fees and £500 cashback on completion or free legal fees.


The lowest fixed five year fixed remortgage continued to be from HSBC this week. HSBC offers a rate 0.96% (2.6% APRC) fixed until 30 November 2026, after which it reverts to 3.54%. It is available to homeowners who have 40% equity in their home (60% LTV) and it has a number of opening restrictions including needing a £75,000 minimum income. This deal charges £1,499 in product fees and comes with the incentive of free valuation and legal fees.

Compare remortgages

Compare the best remortgage rates on our charts.

The best mortgage rates for home-movers

Provider

Rate

Initial rate period

Product fee

 

Platform

0.88% fixed

Two years

£1,499

Speak to a broker

Nationwide Building Society

0.89% fixed

Three years

£999

Speak to a broker

NatWest
 
 NatWest Int Sols
 
 Royal Bank of Scotland

0.98% fixed
 
 0.98% fixed
 
 0.98%

Five years
 
 Five years
 
 Five years

£995
 
 £995
 
 £995

Go to provider’s site

Speak to a broker
 
Go to provider’s site

 

This week the same lenders all retained the top slots for the lowest fixed rate mortgage for home movers. The only change was a rate reduction from Nationwide Building Society to retain its top spot for three year fixed rates.


Platform, part of the Co-operative Bank, continue to offer the lowest moving home two year fixed mortgage rate this week. Its deal offers 0.88% (3.8% APRC) fixed until 30 November 2023 and then reverts to 4.34%. It is available to those with a 40% deposit (60% LTV) and charges £1,499 in product fees. This deal has the incentive of free valuation fees and £250 cashback.


Nationwide Building Society had the lowest three year fixed moving home mortgage rate this week offering 0.89% (3.0% APRC) fixed for three years and then reverts to 3.59%. This deal is available to home movers with a 40% deposit (60% LTV) and charges £999 in product fees. It comes with the incentive of free valuation fees, as well as a green reward of up to £500 for eligible properties.


Again, this week, there are three lenders offering the lowest fixed rate mortgage over five years for moving home. NatWest, NatWest Int Sols – which is only available through mortgage brokers, and Royal Bank of Scotland all had deals offering 0.98% (2.6% APRC) fixed until 30 November 2026, after which they revert to 3.59%. These deals are available to those with a 40% deposit (60% LTV) and charge £995 in product fees. The NatWest and Royal Bank of Scotland deals come with the incentive of £350 cashback, while the deal from NatWest Int Sols has the incentive of free valuation fees to a maximum of £2 million of the house purchase price and £350 cashback.

Compare moving home mortgages

Compare the best mortgage rates for moving home on our charts.

The best first-time buyer mortgages

Provider

Rate

Initial rate period

Product fee

 

Barclays Mortgage

1.97% fixed

Two years

£999

Go to provider’s site

Digital Mortgages by Atom Bank

2.64% fixed

Five years

£1,500

Speak to a broker

This week Barclays Mortgage offers the lowest rate two year fixed rate mortgage for first time buyers, stealing top spot from HSBC. Barclays Mortgage has a rate of 1.97% (3.4% APRC) fixed until 30 November 2023 and then reverts to 3.59%. Borrowers need a 10% deposit (90% LTV) and there is a product fee of £999. There are free valuation fees up to a maximum of £2m.


Digital Mortgages by Atom Bank retains the lowest five year fixed first-time buyer mortgage deal this week. It offers a rate of 2.64% (3.3% APRC) fixed until 30 November 2026 and then reverts to 3.50%. This deal is available to first-time buyers with a 10% deposit (90% LTV) and a minimum mortgage loan of £100,000 must be taken. It charges £1,500 in product fees and has the incentive of free valuation fees.

Compare the best rates for first-time buyer mortgages on our charts.

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. 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. Moneyfacts.co.uk 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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