The best residential mortgage rates 13.11.20 | moneyfacts.co.uk

Michelle Monck

Michelle Monck

Consumer Finance Expert
Published: 13/11/2020

The best rates in the mortgage market remain unchanged this week and those still deciding on the best mortgage for them will find they can still get some of the best rates available last week. However, borrowers should also be aware that average mortgage rates are increasing, so those lenders with the very best deals may decide to increase their rates in line with the rest of the market. Lenders are also taking on average around 16 weeks (115 days) to complete mortgages for those wanting to move home, according to mortgage firm Trussle, so those want to benefit from the stamp duty holiday ending in March next year need to start their applications sooner rather than later.


Although we have highlighted the lowest rates available in the mortgage charts, when looking at mortgage deals, it is important to remember that the lowest rate on offer may not be the best deal for individual circumstances. Instead, borrowers should consider a range of factors, including product fees, incentives and flexible features.
All mortgages shown are available at 60% loan-to-value (LTV) unless indicated otherwise.

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The best remortgage rates

Provider

Rate

Initial rate period

Product fee

Lloyds Bank

1.17% fixed

Two years

£999

Coventry Building Society

1.45% fixed

Three years

£999

Lloyds Bank

1.39% fixed

Five years

£999

There were no changes to the best rates for remortgages at two, three and five-year fixed terms.
The lowest two-year fixed rate remortgage continues to be from Lloyds Bank at 1.17% (3.2% APRC) fixed until 28 February 2023, after which it reverts to 3.59% variable. Lloyds Bank also offers the lowest five-year fixed rate remortgage at 1.39% (2.8% APRC) fixed until 28 February 2026, which then reverts to 3.59% variable. Both mortgages have a fee of £999 and offer free valuation and no legal fees. Club Lloyds account holders also qualify for £200 cashback.
The lowest three-year remortgage rate continues to be from Coventry Building Society. It offers a rate of 1.45% (3.8% APRC) fixed until 31 December 2023 and then reverts to 3.99% variable. This deal is available up to 65% LTV. It charges £999 in product fees and comes with the incentives of free valuation (up to a maximum of £670) and no legal fees. 

Compare remortgages

The best mortgage rates for home-movers

Provider

Rate

Initial rate period

Product fee

Halifax

1.28% fixed

Two years

£995

Barclays Mortgage

1.49% fixed

Three years

£999

HSBC

1.41% fixed

Five years

£1,499

The top rates for mortgages for those moving home have also remained the same this week. Halifax continues to offer the lowest two-year moving home mortgage rate at 1.28% (3.3% APRC ) fixed until 28 February 2023. After this, it reverts to 3.59% variable. This mortgage charges £995 in product fees and there are no incentives.

The lowest three-year fixed rate moving home mortgage comes from Barclays Mortgage at a rate of 1.49% (3.1% APRC) fixed until 31 January 2024. The interest rate then increases to 3.59% variable. It charges £999 in product fees and comes with the incentive of free valuation for properties valued to a maximum of £2 million.

The lowest five-year fixed rate mortgage for those moving home remains with HSBC at 1.41% (2.8% APRC) fixed until 31 December 2025. After this, the rate increases to 3.54% variable. Borrowers need to have an income of at least £75,000 to be eligible for this mortgage. It charges £1,499 in product fees and comes with the incentive of free valuation.


Those earning less than £75,000 will find the lowest rate for a five-year fixed moving home mortgage from Barclays Mortgage at 1.43% (2.8% APRC) fixed until 31 January 2021. After this, the interest rate reverts to 3.59% variable. There is a £999 product fee and free valuation is included.

Compare moving home mortgages

The best first-time buyer mortgage rates

Provider

Rate

Initial rate period

Product fee

Nationwide Building Society

3.49% fixed

Two years

£999

Nationwide Building Society

3.54%

Five years

£999

This week, we are focussing specifically on those mortgages at 90% LTV that do not require a guarantor and are available to most UK first-time buyers (so no or limited local restrictions).


In the two-year fixed first-time buyer chart, the lowest rate comes from Nationwide Building Society, which offers a rate of 3.49% (3.7% APRC) fixed for two years and then reverts to 3.59% variable. The building society also has the most competitive mortgage rate for first-time buyers over a five-year fixed term. It has a rate of 3.54% (3.7% APRC) fixed for five years, after which the rate increases to 3.59% variable. Both mortgages charge £999 in product fees and come with the incentives of free valuation and £500 cashback.


Key workers also have the option of a first-time buyer mortgage from Reliance Bank that has a rate of 3.60% (3.9% APRC) fixed until 31 January 2026. After this the rate increases to 4.00% variable. There is also no product fee to pay with this mortgage. There are free valuations up to a property value of £700,000 available.

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.

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