The Best Residential Mortgage Rates 16 12 21 | moneyfacts.co.uk

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Derin Clark

Derin Clark

Online Reporter
Published: 16/12/2021

Research published by UK Finance this week found that mortgage lending increased by 31% compared to 2020, with remortgaging and first-time buyers having a significant impact on the market. Record low mortgage rates available to those with a high amount of equity in their property encouraged many homeowners to remortgage, while the Stamp Duty holiday helped to strengthen the moving home market during the first half of 2021. During autumn and into winter, first-time buyer rates for those with a 10% and 5% deposit have become more competitive, which may be a trend that continues into next year.

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
TSB 0.94% fixed Three years £995 Speak to a broker
Nationwide Building Society
Yorkshire Building Society

1.39% fixed

1.39% fixed

Five years

Five years

£1,499

£1,495

Speak to a broker

Speak to a broker

 

The lowest mortgage rate in our two year fixed remortgage chart this week that is available to those in all areas of the UK comes from Barclays Mortgage. This deal offers 1.11% (3.2% APRC) fixed until 29 February 2024 and then reverts to 3.59%. It is available to homeowners with 40% equity in their property and charges £999 in product fees.

Homeowners looking for a three year fixed remortgage deal will find that this week TSB continues to have the lowest rate of 0.94% (3.0% APRC) fixed until 28 February 2025, which reverts to 3.59%. This deal is available to those with 40% equity in their home. It charges £995 in product fees and comes with the incentive of free valuation and legal fees.

This week, both Nationwide Building Society and Yorkshire Building Society have the lowest rate on a five year fixed deal available to those in all areas of the UK. Nationwide Building Society offers 1.39% (2.8% APRC) fixed for five years, and then reverts to 3.59%. This deal is available to those with 40% equity in their home and who are looking to borrow a minimum of £300,000. It charges £1,499 in product fees and comes with the incentive of free valuation fees, as well as £500 cashback on completion or free legal fees. Yorkshire Building Society offers 1.39% (3.3% APRC) fixed until 28 February 2027, after which it reverts to 4.49%. This deal is available to homeowners with 25% equity in their property. It charges £1,495 in product fees and has the incentive of free valuation and 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
TSB 1.09% fixed Three years £995 Speak to a broker
Nationwide Building Society 1.32% fixed Five years £1,499 Speak to a broker

 

This week the lowest two year fixed moving home rate available to those in all areas of the UK is a deal from Barclays Mortgage offering 1.11% (3.2% APRC) fixed until 29 February 2024, which then reverts to 3.59%. This deal is available to those with a 40% deposit and charges £999 in product fees.

The lowest three year fixed moving home rate in our chart this week continues to come from TSB, with its deal offering 1.09% (2.3% APRC) fixed until 28 February 2025, and then reverts to 2.59%. A 40% deposit is needed for this deal and it charges £995 in product fees. It has the incentive of free valuation fees.

Nationwide Building Society has the lowest rate in our five year fixed moving home chart this week on a deal available to those in all areas of the UK. This deal offers 1.32% (2.8% APRC) fixed for five years, after which it reverts to 3.59%. It is available to those with a 40% deposit and who are looking to borrow a minimum of £300,000. The deal charges £1,499 in product fees and comes with the incentive of free valuation fees, as well as up to £500 green reward cashback 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
Barclays Mortgage 2.13% fixed Five years £999 Speak to a broker

 

The lowest rate in our two year fixed first-time buyer chart this week on a deal available to those in all areas of the UK is Yorkshire Building Society’s deal offering 1.63% (3.9% APRC) fixed until 29 February 2024, which reverts to 3.75%. This deal is available to those with a 10% deposit and charges £995 in product fees. It comes with the incentive of free valuation fees.

Barclays Mortgage continues to have the lowest rate in our five year first-time buyer chart with its deal offering 2.13% (3.1% APRC) fixed until 28 February 2027 and then reverts to 3.59%. A 10% deposit is needed for this deal, which charges £999 in product fees. It has the incentive of free valuation fees for properties valued to a maximum of £2 million.

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