The Best Residential Mortgage Rates 12.03.21 | moneyfacts.co.uk

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Derin Clark

Derin Clark

Online Reporter
Published: 12/03/2021

Research published this week found that in the last few months, more mortgage deals have been entering the market, however average rates have also continued to rise. Saying this, as borrowers will see from the lowest rates highlighted below, the mortgage charts have remained highly competitive this week, with new lower rates entering some of the charts.

Borrowers should keep in mind when looking for a mortgage deal that the lowest rate on offer may not be the best deal for them. Instead, borrowers should consider all aspects of the deal, including features such as incentives, product fees and flexibility, when choosing the best deal for their needs. Those who would like more help when choosing the right deal should consider speaking to a mortgage broker, who will be able to discuss their needs and take this into account when highlighting the best deals available.

The best remortgage rates

Provider Rate Initial rate period Product fee
Santander
Lloyds Bank
1.09% fixed
1.09% fixed
Two years
Two years
£1,499
£1,499
Coventry Building Society 1.39% fixed Three years £999
Nationwide Building Society
Santander

1.24% fixed

1.24% fixed

Five years

Five years

£1,499

£1,499

 

The lowest two year fixed remortgage rate this week continued to be offered by both Santander and Lloyds Bank. Santander offers 1.09% (3.0% APRC) fixed until 2 June 2023 and then reverts to 3.35% variable. This deal is available to those looking for a 60% loan-to-value (LTV) deal, from a minimum amount of £350,000. It charges £1,499 in product fees and comes with the incentive of free valuation up to a maximum of £1,190 for those based in England, Wales and Northern Ireland or £95 towards valuation fees for those in Scotland, as well as no legal fees. Lloyds Bank continued to offer a rate of 1.09% (3.2% APRC) fixed until 31 May 2023, after which it reverts to 3.59% variable. This deal requires a 60% LTV and a minimum loan of £250,000. It charges £1,499 in product fees and includes the incentive of free valuation and £200 cashback for those with a Lloyds Bank current account.

This week, the lowest three year fixed remortgage rate in our chart came from Coventry Building Society, which offers 1.39% (3.7% APRC) fixed until 30 June 2024 and then reverts to 3.99% variable. This deal is available to those looking for a 50% 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.

Both Nationwide Building Society and Santander continued to offer the lowest rate in our five year fixed remortgage chart this week. Nationwide Building Society offers 1.24% (2.8% APRC) fixed for five years, which then reverts to 3.59% variable. This deal is available to those looking for a 60% LTV and those needing a minimum loan of £300,000. It charges £1,499 in product fees and comes with the incentives of free valuation, as well as £500 cashback on completion or free legal fees. Santander offers 1.24% (2.6% APRC) fixed until 2 June 2026 and then reverts to 3.35% variable. This deal is available to those looking for a 70% LTV and a minimum loan of £350,000. It charges £1,499 in product fees and comes with the incentives of free valuation up to £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 no legal fees.

Compare remortgages

The best mortgage rates for home-movers

Provider Rate Initial rate period Product fee
NatWest Int Sols 1.13% fixed Two years £995
TSB 1.34% fixed Three years £995
Nationwide Building Society 1.24% fixed Five years £1,499

 

The lowest two year fixed rate in the moving home chart this week comes from NatWest Int Sols, which offers 1.13% (3.2% APRC) fixed until 30 June 2023 and then reverts to 3.59% variable. This deal is only available through intermediaries, so those considering it should speak to a mortgage broker. A 60% LTV is needed for this deal, which charges £995 in product fees. It comes with the incentives of £250 cashback, as well as free valuation for properties valued to a maximum of £2 million.

This week, TSB had the lowest three year fixed rate in our moving home chart, with its deal offering 1.34% (3.1% APRC) fixed until 31 May 2024, which then reverts to 3.59% variable. This deal is available at a 60% LTV. It charges £995 in product fees and comes with the incentive of free valuations.

The lowest five year fixed rate in our moving chart this week came from Nationwide Building Society, which offers 1.24% (2.8% APRC) fixed for five years, it then reverts to 3.59% variable. This deal is available to those looking for a 60% LTV and who require a £300,000 minimum loan. It charges £1,499 in product fees and comes with the incentive of free valuation.

Compare moving home mortgages

The best first-time buyer mortgage rates

Provider Rate Initial rate period Product fee
Digital Mortgages by Atom Bank 3.04% fixed Two years £900
Tipton & Coseley Building Society 3.09% fixed Five years £0

 

Although Penrith Building Society continued to have the lowest rate in our two year fixed first-time buyer chart offering 2.99% (4.6% APRC), this deal is only available to those located in Cumbria. The next lowest rate came from Digital Mortgages by Atom Bank, which offers 3.04% (3.5% APRC) fixed until 31 May 2023 and then reverts to 3.50% variable. This deal is available to those looking for a 90% LTV and who require a minimum loan of £145,000 to a maximum of £350,000. It charges £900 in product fees and comes with the incentive of free valuation.

This week, Tipton & Coseley Building Society continued to offer the lowest five year fixed first-time buyer rate with its deal offering 3.09% (4.3% APRC) fixed until 30 April 2026 and then reverts to 4.94% variable. This deal is a guarantee mortgage, so borrowers need a minimum deposit of just 1%, up to a maximum of 10%, with the remaining security of up to the value of 20% being made up of either Tipton’s collateral charge or savings deposit option. It does not charge any product fees.

Compare first-time buyer mortgages

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