The Best Residential Mortgage Rates 13.1.22 | moneyfacts.co.uk

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Cameron Bone

Data Analyst
Published: 13/01/2022

Research was published this week from the January Moneyfacts UK Mortgage Trends Treasury Report showing that the Bank of England’s December interest rate increase has begun to influence the mortgage market, with the cost of fixed rate deals slightly rising. However, there is good news for first-time buyers looking to get on the housing ladder with a 5% deposit, as average rates at 95% loan-to-value (LTV) fell over the month despite overall rates rising. This is the ninth consecutive month in which average rates at 95% LTV for both two-year and five-year fixed rates have fallen.

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

The best remortgage rates

Provider Rate Initial rate period Product fee  
Barclays Mortgage 1.11% fixed Two years £999 Speak to a broker
Barclays Mortgage 1.30% fixed Three years £999 Speak to a broker
Natwest

1.47% fixed

Five years

£995

Speak to a broker

 

In our two-year fixed remortgage chart, Barclays Mortgage remains the lowest rate on a deal available to those in all areas of the UK. This deal offers 1.11% (3.4% APRC) fixed until 29 February 2024 and then reverts to 3.74%. It is available to homeowners with 40% equity in their property and charges £999 in product fees.

The lowest rate in our three-year fixed remortgage chart this week also comes from Barclays Mortgage, with a rate of 1.30% (3.2% APRC) fixed to 28 February 2025, after which it reverts to 3.74%. This deal is available to those who own 40% equity in their home. It charges £999 in product fees and comes with incentives of a free valuation and a choice of either free legal fees or £250 cashback.

NatWest has the lowest five-year remortgage rate and offers 1.47% (2.8% APRC) fixed until 30 April 2027, which reverts to 3.59%. This deal is available to those with 40% equity in their home and charges £995 in product fees. It comes with the incentives of a free valuation and free legal fees.

The best mortgage rates for home-movers

Provider Rate Initial rate period Product fee  
Barclays Mortgage 1.11% fixed Two years £999 Speak to a broker
Barclays Mortgage 1.30% fixed Three years £999 Speak to a broker
Nationwide Building Society 1.39% fixed Five years £1,499 Speak to a broker

 

For those located in all areas of the UK, the lowest rate in our two-year fixed moving home chart this week is from Barclays Mortgage. This deal offers 1.11% (3.4% APRC) fixed until 29 February 2024, after which it reverts to 3.74%. It is available to those with a 40% deposit and charges £999 in product fees.

Barclays also offers the lowest rate in the three-year fixed moving home chart this week with a deal of 1.30% (3.2% APRC) fixed until 28 February 2025, which then reverts to 3.74%. This rate is available to those with a 40% deposit and charges £999 in product fees. It comes with the incentive of a free valuation.

Nationwide Building Society has the lowest five-year fixed rates for those who are moving home at 1.39% (2.9% APRC) fixed for five years and then reverts to 3.74%. This deal is available to those with a 40% deposit and who are looking to borrow a minimum of £300,000. It charges £1,499 in product fees and comes with the incentive of a free valuation, as well as a green cashback reward of up to £500 for eligible properties.

The best first-time buyer mortgages

Provider Rate Initial rate period Product fee  
Yorkshire Building Society 1.63% fixed Two years £995 Speak to a broker

Clydesdale Bank

Platform

2.18% fixed

2.18% fixed

Five years

Five years

£1,999

£1,499

Speak to a broker

Speak to a broker

 

The lowest two-year rate in our first-time buyer chart this week comes from Yorkshire Building Society. This deal offers 1.63% (3.9% APRC) fixed until 30 April 2024 and then reverts to 3.75%. It is available to first-time buyers with a 10% deposit and charges £995 in product fees. This deal includes an incentive of a free valuation.

Two lenders now have the lowest five-year fixed rates for first-time buyers. Clydesdale Bank continues to offer its rate of 2.18% (3.8% APRC) fixed until 31 March 2027, which then reverts to 4.49%. This deal is available to those with a 10% deposit and who are looking to borrow a minimum of £80,000. It charges £1,999 in product fees and comes with the incentive of a free valuation for properties valued up to £3 million. Platform also offers a rate of 2.18% (3.7%) fixed until 30 April 2027, which then reverts to 4.49%. This deal is available for those with a 10% deposit and comes with a fee of £1,499, incentives of a free valuation and £250 cashback are also included.

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