The Best Residential Mortgage Rates 08.01.21 | moneyfacts.co.uk

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Derin Clark

Derin Clark

Online Reporter
Published: 08/01/2021

The Halifax House Price Index, which was released today, shows that although the average house price increased during December 2020, house price growth has slowed to increase by 0.2% month-on-month. According to the index, the average house price now stands at £253,374. Although house price growth may be slowing, and could potentially start to fall as we move further into 2021, mortgage rates remain competitively low, making this a good time to lock into a new mortgage deal.

Below we have highlighted the lowest rates available in the mortgage charts, but mortgage borrowers should remember that the lowest rate may not be the best deal for their situation. Instead, when looking at mortgage deals, borrowers should consider a range of factors including product fees, incentives and flexible features, along with the rate, to determine the best one.

The best remortgage rates

Provider Rate Initial rate period Product fee
Lloyds Bank 1.17% fixed Two years £999
Leeds Building Society
Coventry Building Society
1.35% fixed
1.35% fixed
Three years
Three years
£999
£999
Virgin Money 1.29% fixed Five years £1,495

 

The lowest rate in the two year remortgage chart came from Lloyds Bank, which offers 1.17% (3.3% APRC) fixed until 28 February 2023, after which it reverts to 3.59% variable. This deal is available to those looking for a 60% loan-to-value (LTV) and charges £999 in product fees. It comes with the incentive of free valuation, no legal fees and £200 cashback for those who have a Club Lloyds Current Account.

Both Leeds Building Society and Coventry Building Society had the lowest three year fixed remortgage rates this week. Leeds Building Society offers 1.35% (4.2% APRC) fixed until 29 February 2024 and then reverts to 4.04% variable. This deal is available at a 60% LTV and charges £999 in product fees. It comes with the incentive of free valuation (up to a maximum of £999) and help towards costs. Coventry Building Society offers 1.35% (3.7% APRC) fixed until 31 March 2024, which then reverts to 3.99% variable. This deal is available at a 65% LTV. It charges £999 in product fees and comes with the incentive of free valuation (up to a maximum of £670) and no legal fees.

The lowest five year fixed remortgage rate came from Virgin Money this week, which offers 1.29% (3.1% APRC) fixed until 1 May 2026, after which it reverts to 4.34% variable. This deal is available at a 65% LTV. It charges £1,495 in product fees and comes with the incentive of free valuation and no legal fees.

Compare remortgages

The best mortgage rates for home-movers

Provider Rate Initial rate period Product fee
Clydesdale Bank 1.19% fixed Two years £1,999
Leeds Building Society 1.35% fixed Three years £999
Virgin Money 1.35% fixed Five years £1,495

 

In the two year fixed rate moving home mortgage chart, the lowest rate came from Clydesdale Bank, which offers 1.19% (4.1% APRC) fixed until 31 March 2023. After this, it reverts to 4.55% variable. This deal is available to those looking for a 75% LTV and it charges £1,999 in product fees.

The lowest rate in the three year fixed moving home mortgage chart this week came from Leeds Building Society, which offers 1.35% (4.2% APRC) fixed until 29 February 2024. 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 (up to a maximum of £999).

In the five year fixed moving home mortgage chart, the lowest rate came from Virgin Money, offering 1.35% (3.1% APRC) fixed until 1 May 2026, which then reverts to 4.34% variable. This deal is available to those looking for a 65% LTV. It charges £1,495 in product fees and comes with the incentive of £300 cashback.

Compare moving home mortgages

The best first-time buyer mortgage rates

Provider Rate Initial rate period Product fee
TSB 3.24% fixed Two years £995
Barclays Mortgage 3.05% fixed Five years £0

 

The lowest rate in the two year first-time buyer chart this week without opening restrictions came from TSB, offering 3.24% (2.8% APRC) fixed until 28 February 2023, after which it reverts to 2.59% variable. This deal is available to those looking for 90% LTV. It charges £995 in product fees and comes with the incentive of free valuation and £500 cashback.

In the five year fixed first-time buyer chart, the lowest rate came from Barclays Mortgage, which offers 3.05% (2.8% APRC) fixed until 31 May 2026 and then reverts to 2.59% variable. This deal is a Springboard deal, in which the borrower needs help from a family member to qualify for the mortgage. It is available at a 95% LTV. There are no product fees and it comes with the incentive of free valuation for properties valued to a maximum of £2 million.

Compare first-time buyer mortgages

Disclaimer

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