The Best Mortgage Rates 15.01.21 | moneyfacts.co.uk

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Derin Clark

Derin Clark

Online Reporter
Published: 15/01/2021

There was some good news for first-time buyers this week as we reported that the number of first-time buyer deals has almost doubled month on month. First-time buyers looking for a deal will note the lower rates entering the first-time buyer charts this week. As well as this, homeowners looking to move home or remortgage will find that rates in both these charts still remain highly competitive.

We have highlighted the lowest rates in the remortgage, moving home and first-time buyer charts, but borrowers should note that the lowest rate may not be the best option for their individual circumstances. Instead, when looking at mortgage deals, borrowers should consider a range of factors including product fees, incentives and flexible features, along with the rate, to determine the best one. Borrowers 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 best option.

The best remortgage rates

Provider Rate Initial rate period Product fee
Coventry Building Society 1.05% fixed Two years £999
Coventry Building Society 1.25% fixed Three years £999
Halifax 1.27% fixed Five years £1,495

 

Homeowners looking to remortgage on a two-year fixed deal will find that this week Coventry Building Society had the lowest rate offering 1.05% (3.9% APRC) fixed until 31 March 2023 and then reverts to 3.99%. This deal is available to those looking for a 50% loan-to-value (LTV). It charges £999 in product fees and comes with the incentive of free valuations to maximum of £670 and no legal fees.

Coventry Building Society also had the lowest rate in the three-year fixed remortgage chart this week. It offers 1.25% (3.7% APRC) fixed until 31 March 2024, which then reverts to 3.99%. This deal is available to those looking for a 50% LTV and has the same product fee and incentives as the two-year fixed remortgage deal.

The lowest five-year fixed remortgage rate this week came from Halifax, which offers 1.27% (2.8% APRC) fixed until 28 February 2026 and then reverts to 3.59%. This deal is available to those looking for a maximum 60% LTV and a minimum loan of £250,000 is needed. It charges £1,495 in product fees and comes with the incentive of free valutions and no legal fees. Those looking to borrow a smaller amount will find that Virgin Money had the next lowest five-year fixed remortgage rate of 1.29% (3.1% APRC) fixed until 1 May 2026, after which it reverts to 4.34%. This deal is available to those looking for a 65% LTV and has no minimum loan amount. It comes with the incentive of free valuations and no legal fees.

Compare remortgages

The best mortgage rates for home-movers

Provider Rate Initial rate period Product fee
Skipton Building Society 1.14% fixed Two years £995
Leeds Building Society 1.35% fixed Three years £999
Barclays Mortgage 1.34% fixed Five years £999

 

Mortgage borrowers looking to move home will find that this week the lowest two-year fixed moving home mortgage rate came from Skipton Building Society. This deal offers 1.14% (3.8% APRC) fixed until 30 April 2023, after which it reverts to 3.64%. It is available to those looking for a 60% LTV and charges £995 in product fees. This deal comes with the incentive of a free valuation.

The lowest three-year fixed moving home mortgage rate this week came from Leeds Building Society, which offers 1.35% (4.2% APRC) fixed until 29 February 2024 and then reverts to 4.04%. This deal is available to those looking for 60% LTV. It charges £999 in product fees and comes with the incentive of free valuations to a maximum of £999.

For those looking to lock into a five-year fixed deal the lowest rate comes from Barclays Mortgage which offers 1.34% (2.7% APRC) fixed until 31 May 2026, which then reverts to 3.59%. It is available to those looking for a 60% LTV and charges £999 in product fees. This deal comes with the incentive of free valuations for properties valued to a maximum of £2 million.

Compare moving home mortgages

The best first-time buyer mortgage rates

Provider Rate Initial rate period Product fee
Nationwide Building Society 3.24% fixed Two years £999
Tipton & Coseley Building Society 3.09% fixed Five years £0

 

First-time buyers with a deposit of 10% or less will find that the lowest two-year fixed deal this week comes from Nationwide Building Society. This deal offers 3.24% (3.6% APRC) fixed for two years and then reverts to 3.59%. This deal is available to those looking for a 90% LTV. It charges £999 in product fees and comes with the incentive of free valuations and £500 cashback.

The lowest five year fixed first time buyer deal for those with a deposit of 10% or less is from Tipton & Coseley Building Society. This deal is a guarantor mortgage that offers 3.09% (4.3% APRC) fixed until 31 January 2026 and then reverts to 4.94%. It is available at a 99% LTV, although the borrower can opt to put a deposit of a maximum of 10%, a remaining deposit of up to 20% is required via Tipton’s collateral charge option or savings deposit option. This deal does not charge any product fees.

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. Links to third parties on this page are paid for by the third party. You can find out more about the individual products by visiting their site. Moneyfacts.co.uk will receive a small payment if you use their services after you click through to their site. All information is subject to change without notice. Please check all terms before making any decisions. This information is intended solely to provide guidance and is not financial advice. Moneyfacts will not be liable for any loss arising from your use or reliance on this information. If you are in any doubt, Moneyfacts recommends you obtain independent financial advice.

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