The Best Residential Mortgage Rates 05.03.21 | moneyfacts.co.uk

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Derin Clark

Derin Clark

Online Reporter
Published: 05/03/2021

In Wednesday’s budget, it was announced that the stamp duty threshold of £500,000 would be extended until the 30 June, after which the stamp duty threshold would be lowered to £250,000 until the end of September. As well as this, the Chancellor also announced a new mortgage guarantee scheme designed to encourage more lending to those with a 5% deposit. Those interested in getting a mortgage through the new scheme can find out more about it here.

Mortgage rates have remained highly competitive this week. Below we have highlighted the lowest rates available in the charts, but those looking for a mortgage should be aware that the lowest rate may not be the best deal for them. Instead, borrowers should consider the deal overall, including incentives, product fees and flexible features, when choosing a mortgage. Those wanting more help with choosing the best mortgage deal should consider speaking to a mortgage broker, who will be able to provide advice on the best deal for their needs.

The best remortgage rates

Provider Rate Initial rate period Product fee
Santander
Lloyds Bank
1.09% fixed
1.09% fixed
Two years
Two years
£1,499
£1,499
Leeds Building Society 1.35% fixed Three years £999
Santander
Nationwide Building Society
1.24% fixed
1.24% fixed
Five years
Five years
£1,499
£1,499

 

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

Leeds Building Society continued to offer the lowest three year fixed remortgage rate in our chart this week. It offers 1.35% (4.2% APRC) fixed until 31 May 2024, after which it reverts to 4.04% variable. This deal is available to those looking for a 60% LTV. It charges £999 in product fees and has the incentives of free valuation up to a maximum of £999 and help towards costs.

Santander and Nationwide Building Society both had the lowest rate in our five year fixed remortgage chart this week. Santander offers 1.24% (2.6% APRC) fixed until 2 June 2026 which then reverts to 3.35% variable. This deal requires a minimum loan of £350,000 and is available to those looking for a 70% LTV. It charges £1,499 in product fees and comes with the incentives of free valuation up to a maximum of £1,190 in England, Wales and Northern Ireland and £95 towards valuation fees in Scotland, as well as £250 cashback on completion or no legal fees. Nationwide Building Society also offers 1.24% (2.8% APRC) fixed for five years and then reverts to 3.59% variable. This deal is available to those looking for a 60% LTV and requires a minimum loan of £300,000. It charges £1,499 in product fees. The deal comes with the incentives of free valuation, as well as £500 cashback on completion or no legal fees.

Compare remortgages

The best mortgage rates for home-movers

Provider Rate Initial rate period Product fee
HSBC
Nationwide Building Society
Platform

1.14% fixed
1.14% fixed

1.14% fixed

Two years
Two years

Two years

£999
£1,499

£1,499

TSB 1.34% fixed Three years £995
Nationwide Building Society 1.24% fixed Five years £1,499

 

Three lenders had the lowest two year fixed moving home rate in our chart this week. HSBC offers 1.14% (3.2% APRC) fixed until 31 May 2023 and then reverts to 3.54% variable. This deal is available to those looking for a 60% LTV and charges £999 in product fees. It comes with the incentive of free valuation. Nationwide Building Society offers 1.14% (3.3% APRC) fixed for two years and then reverts to 3.59% variable. It is available at a 60% LTV and a minimum loan of £300,000 is needed. It charges £1,499 in product fees. The deal comes with the incentive of free valuation. Platform offers 1.14% (3.8% APRC) fixed until 30 June 2023, after which it reverts to 4.34% variable. It is available to those looking for 60% LTV and charges £1,499. It comes with the incentives of free valuation and £250 cashback.

The lowest three year fixed moving home rate this week came from TSB, which offers 1.34% (3.1% APRC) fixed until 31 May 2024 and then reverts to 3.59% variable. This deal is available at a 60% LTV and charges £995 in product fees. It comes with the incentive of free valuation.

Nationwide Building Society had the lowest five year fixed moving home rate this week. It offers 1.24% (2.7% APRC) fixed for five years and then reverts to 3.59% variable. This deal is available to those looking for a 60% LTV. It charges £1,499 in product fees and comes with the incentive of free valuation.

Compare moving home mortgages

The best first-time buyer mortgage rates

Provider Rate Initial rate period Product fee
Halifax 3.09% fixed Two years £0
Tipton & Coseley Building Society 3.09% fixed Five years £0

 

Halifax had the lowest rate in the two year fixed first-time buyers chart on a deal available to those located in all areas. This deal offers a rate of 3.09% (3.6% APRC) fixed until 31 May 2023 and then reverts to 3.59% variable. It is available at a 90% LTV. It does not charge any product fees.

Tipton & Coseley Building Society continued to offer the lowest rate in the five year fixed first-time buyer chart with its guarantor mortgage deal. This deal offers 3.09% (4.3% APRC) fixed until 30 April 2026 and then reverts to 4.94% variable. A minimum deposit of 1% is needed from the borrower, up to a maximum of 10%, and the remaining security of up to the value of 20% must be made up of either Tipton’s collateral charge or saving deposit option. It does not have any product fees.

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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