The Best Residential Mortgage Rates 05.02.21 | moneyfacts.co.uk

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Derin Clark

Derin Clark

Online Reporter
Published: 05/02/2021

First-time buyers will be pleased to see that lenders are slowly starting to return to the market and there is now a greater choice of products available. As well as this, rates within the remortgage and moving home charts remain highly competitive this week.

Mortgage borrowers should note that although we’ve highlighted the lowest rates available in the mortgage charts, these deals may not be the best option for their circumstances. Instead, when comparing deals borrowers should consider a range of factors including product fees, incentives and flexibility to determine the best deal. Those unsure of which deal is the best option for them, should consider speaking to a mortgage broker who will be able to provide help and advice in choosing the most suitable mortgage.

The best remortgage rates

Provider Rate Initial rate period Product fee
Lloyds Bank
Santander
1.09% fixed
1.09% fixed
Two years
Two years
£1,499
£1,499
Leeds Building Society 1.35% fixed Three years £999
Halifax 1.26% fixed Five years £1,495

 

Both Lloyds Bank and Santander had the lowest rate in the two year fixed remortgage charts this week. Lloyds Bank offers 1.09% (3.2% APRC) fixed until 31 May 2023, which then reverts to 3.59%. This deal is available to those looking for a 60% loan-to-value and a minimum loan of £250,000. It charges £1,499 in product fees and comes with the incentives of free valuations, no legal fees and £200 cashback. Santander offers 1.09% (3.0% APRC) fixed until 2 May 2023 and then reverts to 3.35%. This deal is available at a 60% LTV and a minimum loan of £350,000 must be borrowed. It charges £1,499 in product fees and comes with the incentive of free valuations to a maximum of £1,190 for those in England, Wales and Northern Ireland, or £95 towards valuation fees for those in Scotland, as well as £250 cashback on completion or free legal fees.

The lowest rate in our three year remortgage chart comes from Leeds Building Society which offers 1.35% (4.2% APRC) fixed until 29 February 2024 and then reverts to 4.04%. This deal is available to those looking for a 60% LTV and charges £999 in product fees. It comes with the incentive of free valuations to a maximum of £999 and help towards costs.

Halifax continued to offer the lowest five year fixed remortgage rate this week. Its deal offers 1.26% (2.7% APRC) fixed until 31 May 2026 and then reverts to 3.59%. This deal is available to those looking for a 60% LTV and a minimum loan of £250,000 must be borrowed. It charges £1,495 in product fees and comes with the incentive of free valuations and no legal fees.

Compare remortgages

The best mortgage rates for home-movers

Provider Rate Initial rate period Product fee
Skipton Building Society 1.14% fixed Two years £995
Leeds Building Society 1.35% fixed Three years £999
Santander
Platform
1.29% fixed
1.29% fixed
Five years
Five years
£1,499
£1,499

 

The lowest two year fixed moving home rate this week was being offered by Skipton Building Society. This deal offers 1.14% (3.9% APRC) fixed until 30 April 2023 and then reverts to 3.64%. It is available at a 60% LTV and charges £995 in product fees. It comes with the incentive of free valuations.

Leeds Building Society had the lowest three year fixed moving home rate this week offering 1.35% (4.2% APRC) fixed until 29 February 2024 and then reverts to 4.04%. This deal is available to those looking for a 60% LTV. It charges £999 in product fees and comes with the incentive of free valuations to a maximum of £999.

Both Santander and Platform have the lowest five year fixed moving home rates this week. Santander offers 1.29% (2.6% APRC) fixed until 2 May 2026, which then reverts to 3.35%. This deal is available to those looking for a 60% LTV and a minimum loan of £350,000. It charges £1,499 in product fees and comes with the incentive of free valuations to a maximum of £1,190 on properties valued to a maximum of £2.5 million. Platform offers 1.29% (3.2% APRC) fixed until 31 May 2026 and then reverts to 4.34%. This deal is only available through selected intermediaries, so those considering this deal should speak to a mortgage broker to see if it is available. It charges £1,499 in product fees and comes with the incentive of free valuations and £250 cashback.

Compare moving home mortgages

The best first-time buyer mortgage rates

Provider Rate Initial rate period Product fee
Cambridge Building Society 2.89% discounted variable Two years £199
Platform 3.14% fixed Two years £1,499
Tipton & Coseley Building Society 3.09% fixed Five years £0

 

The lowest first time buyer two year discounted variable rate without any restrictive location restrictions came from Cambridge Building Society. It offers 2.89% (4.7% APRC) discounted variable for two years and then reverts to 4.89%. This deal is available at a 90% LTV. It charges £199 in product fees and comes with the incentive of free valuations for properties valued to a maximum of £1 million.

First-time buyers looking for a two year fixed rate this week will find that Platform had the lowest rate. It offers 3.14% (4.3% APRC) fixed until 31 May 2023 and then reverts to 4.34%. This deal is only available through selected intermediaries, so those considering the deal should speak to a mortgage broker to see if it is available. It is available at a 90% LTV and charges £1,499 in product fees. This deal comes with the incentives of free valuations and £250 cashback.

Continuing to offer the lowest five year fixed first time buyer rate this week was Tipton & Coseley Building Society which offers 3.09% (4.3% APRC) fixed until 30 April 2026, which then reverts to 4.94%. This deal is a family assist mortgage, which means that the borrower only needs a 1% deposit, up to a maximum of 10%, with the remaining security, up to the value of 20%, from a guarantor via Tipton’s collateral charge option or savings deposit option. There are no product fees charged on this deal.

Compare first-time buyer mortgages

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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