The best residential mortgage rates 11.12.20 | moneyfacts.co.uk

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Michelle Monck

Michelle Monck

Consumer Finance Expert
Published: 11/12/2020

This week, there were rate reductions and product withdrawals that have seen changes in the best mortgage rates available. Platform, a part of Co-operative Bank, withdrew some of its leading rates this week, returning Lloyds Bank back to the top of the remortgage charts and Clydesdale Bank to the top of the home-mover mortgage charts. Leeds Building Society has also now entered the best rates for three-year fixed remortgages and for those moving home.


First-time buyers also have an improved choice of the best 90% loan-to-value (LTV) mortgages this week following Digital Mortgages by Atom Bank improving its rates and TSB launching a new 90% LTV first-time buyer mortgage today.


We’ve highlighted the lowest rates available in the remortgage and moving home charts, as well as some of the best deals in the first-time buyer mortgage chart. All deals shown are at 60% LTV unless stated otherwise.


Borrowers should be aware that the lowest rates may not offer the best deal overall and should also consider factors such as product fees and incentives when they compare mortgages.

The best remortgage rates

Provider

Rate

Initial rate period

Product fee

Lloyds Bank

1.17% fixed

Two years

£999

Leeds Building Society

1.35% fixed

Three years

£999

Virgin Money

1.29% fixed

Five years

£1,495

The best remortgage rate this week is from Lloyds Bank, following Platform (a part of The Co-operative Bank) withdrawing its product from the market. The two-year fixed rate remortgage from Lloyds bank has a rate of 1.17% (3.3% APRC) fixed until 28 February 2023, which then increases to 3.59% variable after the fixed term. This deal has a fee of £999 and includes the incentives of free valuation and free legal fees. There is £200 cashback available to those with a Club Lloyds current account.

Leeds Building Society now has the best rate for a three-year fixed rate remortgage at 1.35% (4.2% APRC) fixed until 29 February 2024, after this the rate increases to 4.04% variable to 28 February 2026. When the initial term is coming to an end, borrowers should compare remortgage rates to see if they could find a better deal. Those remaining on this mortgage after 28 February 2026 will see their rate increase to 5.29% variable. The fee is £999 and there are incentives of free valuation (up to £999) and help towards legal costs.

Virgin Money has the lowest rate five-year fixed rate remortgage this week at 1.29% (3.1% APRC) fixed until 1 March 2026, after which the rate increases to 4.34% variable. This mortgage is also available those needing a LTV up to 65%. The fee is £1,495 and there free valuation and free legal fees are included.

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

The best rate for a two-year fixed rate mortgage for moving home this week is now solely from Clydesdale Bank, after Platform, a part of The Co-operative Group, withdrew its product. Clydesdale Bank offers a rate of 1.19% (4.1% APRC) fixed until 31 January 2023, and after this it increases to 4.55% variable. This deal is available for those looking for a 75% LTV. It charges £1,999 in product fees. There are no incentives with this deal.

The lowest three-year fixed moving home mortgage rate is from Leeds Building Society, offering a rate of 1.35% (4.2% APRC) fixed until 29 February 2024, after which it reverts to 4.04% variable until 28 February 2026. This rate will increase again after this date to 5.29%. Borrowers should look for a remortgage after the initial term ends. The fee for this mortgage is £999 and free valuation (up to £999) is included.

In the five-year fixed moving home chart, the lowest rate this week is from Virgin Money, offering 1.35% (3.1% APRC) fixed until 1 March 2026 and then reverts to 4.34% variable. This deal is available to those looking for a 65% LTV. There is a £1,495 fee for this mortgage, and it 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

Platform part of The Co-operative Bank

3.39% fixed

Five years

£1,499

TSB

3.44% fixed

Five years

£995

Digital Mortgages by Atom Bank

3.44% fixed

Five years

£900

Note: Mortgages with geographical restrictions are not included.

The best first-time buyer mortgage rate this week was from TSB, with its two-year fixed rate mortgage. Its rate of 3.24% (2.8% APRC) is fixed until 29 February 2023, after which it reverts to 2.59% variable. It is available up to 90% LTV and has a fee of £995. Incentives of free valuation and £500 cashback are included.

The best rate for a first-time buyer mortgage over five years was from Platform, part of The Co-operative Bank, at 3.39% (4.1%) fixed until 31 March 2026. After this, the rate increases to 4.34% variable. This mortgage is available up to 90% LTV and has a fee of £1,499. There is free valuation and £250 cashback included. This mortgage is only available from a mortgage broker.

First-time buyers that want to deal with the lender directly can get the best rates this week for a five-year term from TSB and Digital Mortgages by Atom Bank. TSB offers a rate of 3.44% (3.0% APRC) fixed until 28 February 2026, after this it reverts to 2.59% variable. The maximum LTV is 90% and the fee is £995. There are the incentives of free valuation and £500 cashback included. Digital Mortgages by Atom Bank offers a rate of 3.44% (3.6% APRC) fixed until 31 March 2026, after which it increases to 3.50% variable. This mortgage is available up to 90% LTV and has a fee of £900. It comes with free valuation and £500 cashback.

Compare first-time buyer mortgages

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