The Best Residential Mortgage Rates 10 09 21 | moneyfacts.co.uk

Moneyfacts.co.uk will never contact you by phone to sell you any financial product. Any calls like this are not from Moneyfacts. Emails sent by Moneyfacts.co.uk will always be from news@moneyfacts-news.co.uk. Be Scamsmart.


Derin Clark

Derin Clark

Online Reporter
Published: 10/09/2021

Mortgage rates have remained highly competitive this week with lenders continuing to reduce rates across their mortgage deals. Homeowners looking to remortgage or move home will find sub-1% rates remain available in both these charts on two, three and five year fixed deals. Meanwhile, the first-time buyer chart has become more competitive in recent weeks with rates from as low as 1.97% now available in the chart.

Although we’ve highlighted the lowest rates across our mortgage charts, mortgage 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 individual circumstances.

The best remortgage rates

Provider Rate Initial rate period Product fee  
Santander
TSB
0.84% fixed
0.84% fixed
Two years
Two years
£749
£995
Speak to a broker
Speak to a broker
Nationwide Building Society 0.89% fixed Three years £999 Speak to a broker
HSBC 0.96% fixed Five years £1,499 Speak to a broker

 

Both Santander and TSB had the lowest two year fixed remortgage rate this week. Santander offers 0.84% (3.0% APRC) fixed until 2 December 2023 and then reverts to 3.35%. This deal is available to those who own 40% equity in their property – 60% loan-to-value (LTV) – and charges £749 in product fees. It comes with the incentive of a free valuation fee 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 free legal fees. TSB offers 0.84% (3.2% APRC) fixed until 30 November 2023, after which it reverts to 3.59%. Again, this deal is only available to those with 40% equity in their home (60% LTV). It charges £995 in product fees and comes with incentives of a free valuation and free legal fees.

Homeowners looking for a three year fixed remortgage deal will find that Nationwide Building Society had the lowest rate this week. Its deal offers 0.89% (3.0% APRC) fixed for three years and then reverts to 3.59%. It is available to those with 40% equity in their home (60% LTV) and charges £999 in product fees. This deal has the incentive of a free valuation fee, as well as £500 cashback on completion or free legal fees.

The lowest five year fixed remortgage rate this week comes from HSBC, which offers 0.96% (2.6% APRC) fixed until 30 November 2026, which then reverts to 3.54%. This deal is available to those with 40% equity in their home (60% LTV) and has a number of opening restrictions including needing a £75,000 minimum earned income. It charges £1,499 in product fees and comes with incentives of a free valuation and free legal fees.

Compare remortgages

The best mortgage rates for home-movers

Provider Rate Initial rate period Product fee  
Nationwide Building Society 0.87% fixed Two years £1,499 Speak to a broker
Nationwide Building Society 0.89% fixed Three years £999 Speak to a broker
Nationwide Building Society 0.94% fixed Five years £1,499 Speak to a broker

 

Those looking to move home will find that the lowest rate in the two year fixed moving home chart this week came from Nationwide Building Society. This deal offers 0.87% (3.2% APRC) fixed for two years and then reverts to 3.59%. It is only available to those with a 40% deposit (60% LTV) and borrowers must take a minimum mortgage of £275,000. The deal charges £1,499 in product fees and has the incentive of a free valuation fee, as well as cashback of up to £500 for eligible properties.

Nationwide Building Society also had the lowest rate in the three year fixed moving home chart this week. It offers 0.89% (3.0% APRC) fixed for three years, after which it reverts to 3.59%. This deal is available to those with 40% equity in their home (60% LTV) and charges £999 in product fees. It has the incentive of a free valuation fee, along with cashback of up to £500 for eligible properties.

This week, Nationwide Building Society also had the lowest rate in the five year fixed moving home chart. This deal offers 0.94% (2.6% APRC) fixed for five years, after which it reverts to 3.59%. The deal is similar to the two year fixed deal in that it is only available to those with 40% equity in their home (60% LTV) and requires a minimum mortgage of £275,000 to be taken out. This deal also charges £1,499 in product fees and comes with the incentive of a free valuation fee, as well as cashback of up to £500 for eligible properties.

Compare moving home mortgages

The best first-time buyer mortgages

Provider Rate Initial rate period Product fee  
Barclays Mortgage 1.97% fixed Two years £999 Go to provider’s site
Virgin Money 2.62% fixed Five years £995 Go to provider’s site

 

The lowest rate in our two year fixed first-time buyer mortgage chart that can be applied for directly by consumers comes from Barclays Mortgage. This deal offers 1.97% (3.4% APRC) fixed until 30 November 2023 and then reverts to 3.59%. It is available to those with a 10% deposit (90% LTV) and charges £999 in product fees. This deal has the incentive of a free valuation fee for properties valued to a maximum of £2 million.

First-time buyers looking for a five year fixed deal will find that Virgin Money had the lowest rate in our chart on a deal available to mortgage borrowers directly. The deal from Virgin Money offers 2.62% (3.6% APRC) fixed until 1 February 2027, after which it reverts to 4.34%. This deal is available to those with a 10% deposit (90% LTV) and borrowers can take a maximum loan of £540,000. It charges £995 in product fees and comes with the incentive of £500 cashback.

Compare first-time buyer mortgages

Mortgage Repayment Calculator

£
Your Result
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.

Cookies

Moneyfacts.co.uk will, like most other websites, place cookies onto your device. This includes tracking cookies.

I accept. Read our Cookie Policy