The Best Residential Mortgage Rates 18.12.20 | moneyfacts.co.uk

Derin Clark

Derin Clark

Online Reporter
Published: 18/12/2020

Despite the economic uncertainty caused by the Covid-19 pandemic this year, mortgage borrowers have seen mortgage rates in the remortgage and moving home charts remain competitively low. First-time buyers have had a much more challenging market this year and, although lenders are now starting to return to the market, first-time buyers with a 10% deposit or lower still face much less choice than they did at the beginning of this year.

Mortgage borrowers should be aware that below, we have highlighted the lowest rates available in each chart, but these might not be the best deal for their 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.

The best remortgage rates

Provider Rate Initial rate period Product fee
Lloyds Bank 1.17% fixed Two years £999
Leeds Building Society 1.35% fixed Three years £999
Virgin Money 1.29% fixed Five years £1,495

 

The lowest rate in the remortgage chart this week came from Lloyds Bank, which offers 1.17% (3.3% APRC) fixed until 28 February 2023 and then reverts to 3.59% variable. This deal is available to those looking for a 60% loan-to-value (LTV). It charges £999 in products fees and comes with the incentives of free valuation, no legal fees, as well as £200 cashback for those who have a Club Lloyds Current Account.

The lowest three year fixed remortgage rate this week came from Leeds Building Society, which offers 1.35% (4.2% APRC) fixed until 29 February 2024, after which it reverts to 4.04% variable. This deal is available at a 60% LTV. It charges £999 in product fees and comes with the incentives of free valuation (up to a maximum of £999) and help towards legal costs.

In the five year remortgage chart, the lowest rate came from Virgin Money, which offers 1.29% (3.1% APRC) fixed until 1 March 2026 and then reverts to 4.34% variable. This deal is available at a 65% LTV and charges £1,495 in product fees. It comes with the incentive of free valuation and no legal fees.

Compare remortgages

The best mortgage rates for home-movers

Provider Rate Initial rate period Product fee
Clydesdale Bank 1.19% fixed Two years £1,999
Leeds Building Society 1.35% fixed Three years £999
Virgin Money 1.35% fixed Five years £1,495

 

Homeowners looking to move will find that the lowest moving home two year fixed mortgage rate was being offered by Clydesdale Bank. The bank offers 1.19% (4.1% APRC) fixed until 31 January 2023, which then reverts to 4.55% variable. This deal is available at a 75% LTV. It charges £1,999 in product fees and comes with the incentive of free valuation (up to a maximum of £3 million of purchase price).

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

In the five year fixed moving home chart, the lowest rate came from Virgin Money, offering 1.35% (3.1% APRC) fixed until 1 March 2026, after which it reverts to 4.34% variable. This deal is available at a 65% LTV and charges £1,495 in product fees. It comes with the incentive of £300 cashback.

Compare moving home mortgages

The best first-time buyer mortgage rates

Provider Rate Initial rate period Product fee
TSB 3.24% fixed Two years £995
Barclays Mortgage 3.05% fixed Five years £0

 

Although the last few weeks have seen more well-known mortgage lenders re-enter the first-time buyer market by offering deals at a 90% LTV, the market still remains challenging, and first-time buyers may want to consider speaking to a mortgage broker to get the best deal available.

In the two year fixed first-time buyer chart this week, the lowest rate on a deal without opening restrictions come from TSB, which offers 3.24% (2.8% APRC) fixed until 28 February 2023 and then reverts to 2.59% variable. This deal is available at a 90% LTV and charges £995 in product fees. It comes with the incentives of free valuation and £500 cashback.

The lowest rate in the five year fixed first-time buyer chart comes from Barclays Mortgage, which offers 3.05% (2.8% APRC) fixed until 31 January 2026 and then reverts to 2.59% variable. This deal is available at a 95% LTV and does not charge any product fees. It comes with the incentive of free valuation for properties valued to a maximum of £2 million.

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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