The best residential mortgage rates 12.02.21

Research carried out this week found that the number of mortgage deals is at its highest level since March 2020, meaning that borrowers have the biggest choice of deals in 11 months. The biggest rise in deals came in the first-time buyer chart, which is good news for those looking to buy a property with a 10% deposit.

Below we have highlighted the lowest rates available in our remortgage, moving home and first-time buyer charts. Although rate is important when considering mortgage deals, borrowers should also look at other features such as incentives and products fees when looking at deals to determine which is the best one for their needs. Those unsure of which deal is the best option for them should consider speaking to a mortgage broker, who will be able to provide help and advice in choosing the most suitable mortgage.

The lowest two year fixed remortgage rate continued to be offered by Lloyds Bank and Santander. Lloyds Bank offers 1.09% (3.2% APRC) fixed until 31 May 2023, which then reverts to 3.59% variable. This deal is available at a 60% loan-to-value (LTV) and who are looking for a minimum loan of £250,000. It charges £1,499 in product fees and comes with the incentive of free valuation, no legal fees and £200 cashback for Club Lloyds account holders. Santander offers 1.09% (3.0% APRC) fixed until 2 May 2023 and then reverts to 3.35% variable. It is available at a 60% LTV and a minimum loan of £350,000 is needed. This deal charges £1,499 in product fees and comes with the incentive of free valuation up to a maximum of £1,190 in England, Wales, Northern Ireland or £95 towards valuation fees in Scotland, as well as £250 cashback on completion or free legal fees.

Leeds Building Society had the lowest rate in our three year fixed remortgage chart this week. Leeds Building Society offers 1.35% (4.2% APRC) fixed until 31 May 2024, after which it reverts to 4.04% variable. This deal is available at a 60% LTV. It charges £999 in product fees and comes with the incentive of free valuation up to a maximum of £999 and help towards costs.

The lowest five year fixed remortgage rate in our chart this week came from Halifax, which offers 1.26% (2.7% APRC) fixed until 31 May 2026 and then reverts to 3.59% variable. It is available at 60% LTV, with a minimum loan of £250,000 and charges £1,495 in product fees. It comes with the incentive of free valuation and free legal fees.

Platform had the lowest two year fixed moving home rate this week. It offers 1.14% (3.8% APRC) fixed until 31 May 2023, which then reverts to 4.34% variable. This deal is available at a 60% LTV. It charges £1,499 in product fees and comes with the incentive of free valuation and £250 cashback.

The lowest rate in our three year fixed rate moving home chart this week came from Leeds Building Society, which offers 1.35% (4.1% APRC) fixed until 31 May 2024 and then reverts to 4.04% variable. This deal is available at a 60% LTV and charges £999 in product fees. This deal comes with the incentive of free valuation to a maximum of £999.

TSB had the lowest five year fixed moving home rate this week offering 1.24% (2.7% APRC) fixed until 31 May 2026, after which it reverts to 3.59% variable. It is available at a 60% LTV and charges £995 in product fees. It comes with the incentive of free valuation.

The lowest discounted variable rate in the first-time buyer chart that does not have localised opening restrictions came from Cambridge Building Society, which offers 2.89% (4.7% APRC) discounted variable for two years and then reverts to 4.89%. This deal is available at a 90% LTV and charges £199 in product fees. It comes with the incentive of free valuation for properties valued up to a maximum of £1 million.

Platform had the lowest rate in the two year fixed first-time buyer chart that did not have localised opening restrictions. It offers 3.14% (4.3% APRC) fixed to 31 May 2023 and then reverts to 4.34% variable. It is available at a 90% LTV. This deal charges £1,499 in product fees and comes with the incentives of free valuation and £250 cashback.

The lowest five year fixed first-time buyer rate this week came from Tipton & Coseley Building Society, which offers 3.09% (4.3% APRC) fixed until 30 April 2026 and then reverts to 4.94% variable. This is a guarantor mortgage in which a 1% deposit from the borrower up to a maximum of 10% is needed, the remaining security up to the value of 20% can be made up of either Tipton’s collateral charge or savings deposit options. There are no product fees with this deal.