The Best Residential Mortgage Rates 07.05.21 | moneyfacts.co.uk

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Derin Clark

Derin Clark

Online Reporter
Published: 07/05/2021

Mortgage rates in both the remortgage and moving home charts have remained highly competitive this week. Meanwhile, first-time buyers will be pleased to see that choice within this market continues to grow, with Virgin Money announcing it will shortly be offering deals for those with a 5% deposit under the Government’s mortgage guarantee scheme.

Below we’ve highlighted the lowest mortgage rates in the remortgage, moving-home and first-time buyer mortgage charts. Although considering rates is important when choosing a mortgage, borrowers should keep in mind that the lowest-rated deal may not be the best choice for them. Instead, they should consider a range of factors, such as incentives, product fees and flexible features, when considering mortgage deals. Borrowers who are unsure of which deal is best for them should speak to a broker who will be able to provide help and advice on choosing the best deal.

The best remortgage rates

Provider Rate Initial rate period Product fee  

NatWest

Royal Bank of Scotland

1.03% fixed

1.03% fixed

Two years

Two years

£995

£995

Go to provider’s site
Go to provider’s site
Coventry Building Society 1.39% fixed Three years £999 Speak to a broker
Santander
TSB
Nationwide Building Society
1.19% fixed
1.19% fixed
1.19% fixed
Five years
Five years
Five years
£1,249
£1,495
£1,499
Speak to a broker
Speak to a broker
Speak to a broker

 

Both NatWest and Royal Bank of Scotland (RBS) continued to offer the lowest rate in the two year remortgage chart this week. Both deals offer 1.03% (3.2% APRC) fixed until 31 August 2023 and then revert to 3.59% variable. They are available at a 60% loan-to-value (LTV) and borrowers must take a minimum loan of £350,000. Both deals charge a product fee of £995 and have the incentives of a free valuation and no legal fees.

Coventry Building Society continued to offer the lowest rate in our three year remortgage chart this week offering 1.39% (3.7% APRC) fixed until 30 June 2024, after which it reverts to 3.99% variable. This deal is available at a 50% LTV and charges a £999 in product fees. It has the incentive of a free valuation up to a maximum of £670 and no legal fees.

Three lenders had the lowest rate in the five year fixed remortgage chart this week. Santander offers 1.19% (2.6% APRC) fixed until 2 August 2026 and then reverts to 3.35% variable. This deal is available at a 70% LTV and is only available to those taking a minimum loan of £350,000. It charges £1,249 in product fees and comes with the incentive of a free valuation 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 no legal fees. TSB offers 1.19% (2.7% APRC) fixed until 31 August 2026, which then reverts to 3.59% variable. It is available at a 60% LTV and charges £1,495 in product fees. It has the incentive of free valuation and no legal fees. Nationwide Building Society offers 1.19% (2.7% APRC) fixed for five years, which then reverts to 3.59% variable. This deal is available at a 60% LTV and requires a minimum loan of £300,000 to be taken. It charges £1,499 in product fees and comes with the incentive of a free valuation, along with £500 cashback on completion or no legal fees.

Compare remortgages

The best mortgage rates for home-movers

Provider Rate Initial rate period Product fee  
Platform 1.06% fixed Two years £1,499 Speak to a broker
TSB 1.34% fixed Three years £995 Speak to a broker
HSBC 1.21% fixed Five years £1,499 Speak to a broker

 

Platform, which is part of The Co-operative Bank, continued to have the lowest two year fixed rate in the moving home chart this week. It offers 1.06% (3.9% APRC) fixed until 31 July 2023 and then reverts to 4.34% variable. This deal is available to those looking for a 60% LTV and charges £1,499 in product fees. It comes with the incentives of free valuation and £250 cashback.

TSB had the lowest rate in our three year fixed moving home chart offering 1.34% (3.1% APRC) fixed until 31 August 2024, after which it reverts to 3.59% variable. This mortgage is available at a 60% LTV. It charges £995 in product fees and comes with the incentive of a free valuation.

The lowest rate in the five year fixed moving home chart this week came from HSBC, which offers 1.21% (2.7% APRC) fixed until 31 August 2026, and reverts to 3.54% variable thereafter. This deal is available at a 60% LTV, but borrowers should note it has some opening restrictions including requiring a minimum earned income of £75,000. It charges a product fee of £1,499 and comes with the incentive of a free valuation.

Compare moving home mortgages

The best first-time buyer mortgages

Provider Rate Initial rate period Product fee  
Clydesdale Bank 2.89% fixed Two years £1,999 Speak to a broker
Clydesdale Bank 3.28% fixed Five years £1,999 Speak to a broker

 

First-time buyers will find that Clydesdale Bank had the lowest rate on deals without localised opening restrictions in both the two and five year fixed first-time buyer charts. Its two-year deal offers 2.89% (4.5% APRC) fixed until 31 July 2023 and its five-year deal offers 3.28% (4.3% APRC) fixed until 31 July 2026. Both deals revert to 4.55% variable after their fixed term offer has ended. These deals are available at a 90% LTV and require a minimum loan of £80,000. They charge £1,999 in product fees and come with the incentive of a free valuation for properties with a maximum purchase price of £3 million.

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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