The best residential mortgage rates 20.11.20 | moneyfacts.co.uk

Michelle Monck

Michelle Monck

Consumer Finance Expert
Published: 20/11/2020
The best rates in the mortgage market remain largely unchanged this week.
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 for those with 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

Once again, this week there were no changes to the best rates for remortgages at two, three and five-year fixed terms.


Lloyds Bank continues to offer the best remortgage rate for a two-year term at 1.17% (3.2% APRC) fixed until 28 February 2023. The rate increases after the fixed term to 3.59% variable. Lloyds Bank also has the best five-year fixed rate remortgage at 1.39% (2.8% APRC) fixed until 28 February 2026. The rate reverts to 3.59% variable once the fixed term ends. 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 best 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. The product fee is £999 and it 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

Virgin Money

1.42% fixed

Five years

£1,495

The best rates for mortgages for those moving home continue to be the same this week. The best two-year mortgage rate for those moving home is from the Halifax at 1.28% (3.3% APRC) fixed until 28 February 2023. When the fixed rate term ends, it increases to 3.59% variable. This mortgage charges £995 in product fees. A downside of this mortgage is that no incentives are available.


The best three-year fixed rate mortgage for those moving home is available from Barclays Mortgage at 1.49% (3.1% APRC) fixed until 31 January 2024. The interest rate then increases to 3.59% variable. This mortgage has a product fee of £999 and comes with the incentive of free valuation for properties valued up to a maximum of £2 million.


The best five-year fixed rate mortgage for those moving home remains with HSBC, however this is only available to those with an annual income of more than £75,000 per annum. The rate is 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 that are purchasing a new home will find the best five-year fixed rate mortgage is available from Virgin Money at 1.42% (3.1% APRC) fixed until 1 March 2023, reverting to 4.34% variable thereafter. This mortgage is available up to 65% LTV and the fee is £1,495. It includes the incentive of free valuation.

Compare moving home mortgages

The best first-time buyer mortgage rates

Provider

Rate

Initial rate period

Product fee

Buckinghamshire Building Society

2.74% discounted variable

Two years

£0

Buckinghamshire Building Society

2.99% discounted variable

Three years

£850

Barclays Mortgage

3.25% fixed

Five years

£0

This week we are focussing specifically on guarantor mortgages. A guarantor mortgage helps those with little or no deposit to buy their first home. Buyers will need to have a guarantor, usually a family member, that is happy to use their property or savings as equity for the new purchase.


The best rate for a guarantor mortgage of two and three years is available from Buckinghamshire Building Society. The two-year rate is 2.74% (4.5% APRC) and the three-year rate is 2.99% (4.4% APRC). Both are discounted variable rates, which means they track 2.00% below the Buckinghamshire Building Society’s standard variable rate of 4.74%. However, these are the lowest the rates will ever be, but there is the possibility these could increase if Buckinghamshire Building Society decided to increase its standard variable rate. After the two or three-year term, the mortgage rate will revert to 4.74%. The three-year mortgage has a fee of £850.


Barclays Mortgage has the best five-year rate for a guarantor mortgage. Its Springboard Mortgage has a rate of 3.25% (2.9% APRC) fixed until 31 January 2026, after which it increases to 2.59% variable. This mortgage also offers free valuation on properties up to £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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