The Best Residential Mortgage Rates 05.11.21 | moneyfacts.co.uk

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Derin Clark

Derin Clark

Online Reporter
Published: 05/11/2021

Mortgage lenders are starting to increase rates on deals and borrowers will see that many sub-1% deals have disappeared as result. Saying this, there are still some highly competitive rates available and, although this week’s expected Bank of England base rate rise never materialised, there is still the possibility that base rate will increase before the end of this year. This means that borrowers on a tracker mortgage or on a standard variable rate (SVR) may want to consider locking into a fixed rate deal.

Although we’ve highlighted the lowest rates across our mortgage charts, borrowers should always keep in mind that the lowest rate may not be the best, or most cost effective, deal for them. Instead, it is important to consider factors such as product fees and incentives when comparing mortgage deals, as these can have a significant impact on the 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 circumstances.

The best remortgage rates

Provider Rate Initial rate period Product rate  
Cumberland Building Society 0.88% fixed Two years £1,999 Find out more
TSB 0.94% fixed Three years £995 Find out more
Lloyds Bank 1.07% fixed Five years £1,499 Find out more

 

The lowest two year fixed remortgage rate this week comes from Cumberland Building Society, which offers 0.88% (3.7% APRC) fixed until 1 February 2024 and then reverts to 4.09%. This deal is available to those with 40% equity in their home and charges £1,999 in product fees. The deal comes with the incentives of a free valuation and free legal fees.

Homeowners looking for a three year fixed remortgage deal will find that this week the lowest rate comes from TSB with a deal offering 0.94% (3.0% APRC) fixed until 28 February 2025, after which it reverts to 3.59%. The deal is available to homeowners with 40% equity in their property. It charges £995 in product fees and has the incentives of a free valuation and free legal fees.

The lowest rate in the chart without localised opening restrictions is Lloyds Bank’s deal offering 1.07% (2.7% APRC) fixed until 28 February 2027, after which it reverts to 3.59%. It requires homeowners to have a minimum of 40% equity in their property and take a mortgage loan from a minimum of £250,000. The deal charges £1,499 in product fees and comes with the incentives of a free valuation, free legal fees and, for those who hold a Club Lloyds current account, £750 cashback.

Compare remortgages

The best mortgage rates for home-movers

Provider Rate Initial rate period Product fee  
Furness Building Society 1.02% fixed Two years £999 Find out more
TSB 1.09% fixed Three years £995 Find out more

NatWest

Royal Bank of Scotland

1.12% fixed

1.12% fixed

Five years

Five years

£995

£995

Go to provider’s site
Find out more

 

This week, the lowest rate in the two year fixed moving home chart available to those living in all areas of Great Britain comes from Furness Building Society. The Furness Building Society deal offers 1.02% (4.5% APRC) fixed for two years, which then reverts to 5.14%. This deal is available to those with a 25% deposit and charges £999 in product fees. It comes with the incentive of a free valuation to a maximum of £665.

In the three year fixed moving home chart this week the lowest rate comes from TSB, which offers 1.09% (2.3% APRC) fixed until 28 February 2025 and then reverts to 2.59%. It is available to those with a 40% deposit and charges £995 in product fees. The deal has the incentive of a free valuation.

The lowest rate without localised opening restrictions comes from NatWest and Royal Bank of Scotland. Both banks offer 1.12% (2.7% APRC) fixed until 28 February 2027, after which they revert to 3.59%. The deals are available to those with a 40% deposit and they charge £995 in product fees. These deals come with the incentive of £150 cashback.

Compare moving home mortgages

The best first-time buyer mortgages

Provider Rate Initial rate period Product fee  
Leeds Building Society 1.65% fixed Two years £999 Find out more
Digital Mortgages by Atom Bank 2.39% fixed Five years £1,500 Find out more

 

The lowest rate in the two year fixed first-time buyer chart this week is Leeds Building Society’s deal offering 1.65% (4.4% APRC) fixed until 29 February 2024, after which it reverts to 4.04%. The deal is available to first-time buyers with a 10% deposit. It charges £999 in product fees and has the incentive of free valuation fees to a maximum of £999.

First-time buyers looking for a five year fixed mortgage will find the lowest rate in our chart this week is a deal from Digital Mortgages by Atom Bank. This deal offers 2.39% (3.2% APRC) fixed until 31 January 2027 and then reverts to 3.50%. It is available to those with a 10% deposit and borrowers must take a minimum loan of £75,000. The deal charges £1,500 in product fees and has the incentive of a free valuation.

Compare first-time buyer mortgages

How to find the best mortgage deal

To find the best mortgage deal it may be worthwhile speaking to a mortgage broker who will have access to all market deals and be able to highlight the best deals for your circumstances.

Disclaimer

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