Competition in the mortgage market remained heightened this week, with the launch of a new two-year deal priced at just 0.95% – which is available to both house purchase and remortgage customers – and a raft of rate cuts elsewhere in the market too.
Though while tempting, it’s important to look beyond the headline rate, as some borrowers may find that the lowest-priced deal isn’t necessarily right for them. Factors such as fees and any incentives can be just as important to consider when determining the overall cost, and anyone who’s wondering where to start may want to speak to a broker who’ll be on-hand to help them find the best deal for their needs.
This week, Platform made headlines by offering a market-leading two-year rate priced at just 0.95% (3.9% APRC), fixed until 31 August 2023 before reverting to 4.34% variable for term. This deal is available at up to 60% loan-to-value (LTV) and charges £1,499 in product fees, and it has incentives of free valuation and £250 cashback, as well as free legal fees.
Platform also boasts the lowest three-year rate currently available, priced at 1.18% (3.7% APRC) until 31 August 2024 and reverting to 4.34% variable thereafter. All other features mirror that of the two-year offer. And it’s a Platform whitewash with it offering the market-leading five-year fixed rate too, priced at 1.18% (3.2% APRC) until 31 August 2026 with the same revert rate, fee and incentives as its shorter-term deals.
It’s worth pointing out that Platform’s deals are only available through mortgage brokers – speak to our broker partner to find out more – or if you’d rather go direct, the next-best two and five-year rates come from TSB, priced at 0.99% (3.2% APRC) and 1.19% (2.8% APRC) respectively. Both have variable revert rates of 3.59% for term and are available at up to 60% LTV, with a fee of £1,495 and incentives of free valuation and legal fees.
This week, Platform boasts the lowest rate in the two and three-year fixed moving home chart too: the two-year deal is priced at 0.95% (3.8% APRC) until 31 August 2023 with a revert rate of 4.34% variable, a fee of £1,499 and an incentive package of free valuation and £250 cashback. The three-year deal is priced at 1.18% (3.6% APRC) with the same features as its predecessor, with both available at up to 60% LTV.
NatWest Intermediary Solutions has the lowest rate in our five-year fixed moving home chart this week, offering 1.17% (2.7% APRC) that’s fixed until 31 August 2026 before reverting to 3.59% variable for term. It is available at up to 60% LTV and charges £995 in product fees, with an incentive package of free valuation and £250 cashback.
The deals from both Platform and NatWest Intermediary Solutions can only be found via intermediaries. If you’d prefer to go direct, the next-best two-year rate comes from Halifax, priced at 1.08% (3.2% APRC) until 31 August 2023 before reverting to 3.59% variable for term. It’s available at up to 60% LTV and has a fee of £995, but no incentives are offered.
If it’s a direct three-year deal you’re looking for and have got 40% equity (60% LTV), TSB offers a rate of 1.34% (3.1% APRC) fixed to 31 August 2024 before reverting to 3.59% variable, with a £995 fee and incentive of free valuation. In the five-year sector, HSBC has got a direct deal fixed at 1.21% (2.7% APRC) until 31 August 2026 that reverts to 3.54% variable. The fee is £1,499, it’s available at up to 60% LTV and it offers free valuation as an incentive, though borrowers will need a minimum income of £75,000 to qualify.
Halifax continues to have the lowest two-year fixed rate in our first-time buyer chart that does not have localised opening restrictions. This deal is priced at 2.88% (3.6% APRC) until 31 August 2023 before reverting to 3.59% variable for term. It is available at up to 90% LTV and has a product fee of £995, but there are no incentives on offer.
The lowest rate in our five-year fixed first-time buyer chart that does not have localised opening restrictions comes from HSBC, priced at 3.26% (3.6% APRC) until 31 August 2026 and reverting to 3.54% variable thereafter. This deal is available at up to 90% LTV, although borrowers should be aware that it has strict application criteria, including a minimum earned income of £75,000. This deal charges £1,499 in product fees and comes with the incentive of free valuation.
Compare the best rates for first-time buyer mortgages on our charts.
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