The best residential mortgage rates 09.07.21 | moneyfacts.co.uk

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Michelle Monck

Michelle Monck

Consumer Finance Expert
Published: 09/07/2021

HSBC is dominating the best mortgage rates this week, offering the lowest deals across numerous mortgage types and terms. Many of these top deals also come with very high mortgage fees. Borrowers should be careful as their total cost of borrowing may be higher with a lower rate mortgage that comes with a higher fee. A mortgage broker can help you to identify which mortgage will offer you the best value and best meet your needs. 

Our preferred mortgage broker, Mortgage Advice Bureau offers Moneyfacts.co.uk visitors FREE mortgage advice when calling direct on 0808 149 9177 or arranging a call back.

Below we’ve highlighted the lowest rates in our mortgage charts, but borrowers should keep in mind that the lowest rate may not be the best deal and should instead consider the total cost of the mortgage, including product fees and incentives, when considering deals. Mortgage borrowers 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 individual circumstances.

The best remortgage rates

Provider

Rate

Initial rate period

Product fee

 

TSB

0.94% fixed

Two years

£995

Speak to a broker

HSBC

0.94% fixed

Two years

£999

Speak to a broker

HSBC

1.09% fixed

Three years

£999

Speak to a broker

HSBC

1.06% fixed

Five years

£1,499

Speak to a broker

This week both HSBC and TSB had the lowest two-year fixed rate remortgage, at 0.94% (3.2% APRC) is the lowest fixed rate mortgage ever seen in the market. Both deals are fixed until 31 August 2023 and are available at 60% loan-to-value (LTV). After this the rate will increase to 3.59% variable for TSB and 3.54% variable for HSBC. TSB charges a £995 fee and HSBC a £999 fee. Both come with free valuations and free legals for those needing to remortgage.

HSBC again had the lowest three-year fixed remortgage rate this week reducing its best rate from 1.14% to 1.09% (3.0% APRC) fixed until 31 August 2024, after which it reverts to 3.54% variable. This deal is available at a 60% LTV and charges £999 in product fees. It comes with the incentive of a free valuation and no legal fees.

HSBC also offered the lowest five-year fixed rate remortgage this week at 1.06% (2.7% APRC). The fixed period lasts until 31 August 2026, reverting to 3.54% variable. The product fee is £1,499 and comes with free legal and valuations for those needing to remortgage.

Compare remortgages

The best mortgage rates for home-movers

Provider

Rate

Initial rate period

Product fee

 

HSBC

0.94% fixed

Two years

£999

Speak to a broker

HSBC

1.09% fixed

Three years

£999

Speak to a broker

HSBC

1.06% fixed

Five years

£1,499

Speak to a broker

Virgin Money

1.95%

Ten years

£995

Go to provider’s site

 

HSBC is offering the best mortgage rates for home movers this week across, two, three and five-year fixed terms all at 60% LTV. Its two-year fixed rate mortgage has a rate of 0.94% fixed (3.2% APRC) to 31 August 2023. Its three-year fixed rate mortgage has a rate of 1.09% fixed (3.0% APRC) until 31 August 2024. Finally, its five-year fixed rate mortgage has a rate of 1.06% (2.7% APRC) until 31 August 2026. All these mortgages will increase in rate to 3.54% variable after the initial term ends. The two and three year fixed terms have a product fee of £999 and the five-year term a fee of £1,499.

The best ten-year fixed rate mortgage for those moving home is from Virgin Money at 1.95% fixed (2.7% APRC) until 1 October 2031. After this the rate increases to 4.09% variable. The product fee is £995 and there is £300 cashback available. Borrowers up to 65% LTV are eligible for this mortgage.

Compare moving home mortgages

The best first-time buyer mortgages

Provider

Rate

Initial rate period

Product fee

 

Leeds Building Society

2.47% fixed

Two years

£999

Speak to a broker

HSBC

2.96% fixed

Five years

£1,499

Speak to a broker

Note: mortgages restricted to Northern Ireland only have been excluded.

The lowest two-year fixed first-time buyer mortgage rate available to those in England is from Leeds Building Society at 2.47% fixed (4.6% APRC) until 31 October 2023. After this the rate increases to 4.04% variable. This mortgage is available up to 90% LTV and the product fee is £999.

The lowest five-year fixed first-time buyer mortgage rate available is from HSBC at 2.96% fixed (3.5% APRC) until 31 August 2026. The product fee is £1,499. Borrowers need to be a HSBC Premier current account holder and earn at least £75,000 per annum. Those not able to meet these requirements could opt for the next best rate at 2.99% fixed, also from HSBC. This has a lower fee of £999 and has the same duration and reverting rate.

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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