The best residential mortgage rates 23.10.20 | moneyfacts.co.uk

Michelle Monck

Michelle Monck

Consumer Finance Expert
Published: 23/10/2020

The very best mortgage rates largely remain unchanged this week for those wanting to remortgage or move home. The mortgage market continues to be difficult for first-time buyers, with many mortgages at 90% loan-to-value (LTV) only available in specific regions or with a guarantor. A mortgage broker can help buyers and those wanting to remortgage to find the best mortgage deals.


Below we have highlighted the lowest rates available in the remortgage and moving home charts, as well as some of the best deals in the guarantor mortgage chart. Borrowers should be aware the lowest rates may not offer the best deal overall and should also consider factors such as product fees and incentives when choosing a mortgage.

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The best remortgage rates

Provider

Rate

Initial rate period

Product fee

Lloyds Bank

1.17%

Two years

£999

Coventry Building Society

1.59%

Three years

£999

Lloyds Bank

1.39%

Five years

£999

This week, the best remortgage rates remain unchanged. The best two-year fixed rate remortgage is still from Lloyds Bank at 1.17% (3.2% APRC) fixed until 28 February 2023, after which it reverts to 3.59% variable for the term. This deal has a maximum LTV of 60%. There is £999 product fee, which is partly offset by the incentive of free valuation and free legal fees for all. There is also £200 cashback for those that hold a Club Lloyds bank account.


The lowest rate in the three-year fixed remortgage chart remains from Coventry Building Society. It offers a rate of 1.59% (3.8% APRC) fixed until 31 December 2023 and then reverts to 3.99% variable for term. This deal is available to those looking to remortgage at a 65% LTV. There is a £999 product fee for this mortgage. Free valuation (to a maximum of £670) and no legal fees are also included.


Lloyds Bank again has the lowest five-year fixed remortgage rate this week, with a rate of 1.39% (2.8% APRC) fixed until 28 February 2026. After this, the rate reverts to 3.59% variable for the term. This deal is available to those looking for a 60% LTV. There is a £999 product fee and it comes with the incentives of free valuation, no legal fees, as well as £200 cashback if a Club Lloyds current account is held.

Remortgages

All the rates available can be found on our remortgage chart.

 

The best mortgage rates for home-movers

Provider

Rate

Initial rate period

Product fee

Halifax

1.28%

Two years

£995

Coventry Building Society

1.59%

Three years

£999

HSBC

1.41%

Five years

£1,499

The lowest mortgage rates for those wanting to buy a home have remained unchanged for two and three-year fixed rate deals, but HSBC has introduced a new market-leading rate mortgage for those wanting a five-year fixed deal.


Halifax offers the lowest rate two-year fixed rate for those needing a home-mover mortgage at 1.28% (3.2% APRC) fixed until 28 February 2023. After this, the rate increases to 3.59% variable for the term. This deal is available to those looking for a 60% LTV. It has a £995 product fee.


Coventry Building Society continues this week, to have the lowest rate for a three-year fixed rate mortgage for those moving home. It offers a rate of 1.59% (3.7% APRC) fixed until 31 December 2023, which then reverts to 3.99% variable for the term. This mortgage deal is available up to a maximum 65% LTV. It charges £999 in product fees and comes with the incentive of free valuation (up to a maximum of £670).


HSBC now has the best rate for a five-year fixed rate mortgage for those moving home. It offers a rate of 1.41% (2.8% APRC) fixed until 31 December 2025. After this, the rate increases to 3.54% variable for the term. This mortgage is available up to a maximum of 60% LTV and has a product fee of £1,499. It is only available to those with a salary or annual income of more than £75,000. Those with a lower salary could qualify for HSBC’s slightly higher rate of 1.44% (2.8% APRC) fixed until 31 December 2025. After this, the rate increases to 3.54% variable for the term.

Moving home mortgages

All the rates available can be found on our moving home chart.

 

The best first-time buyer mortgage rates

Provider

Rate

Initial rate period

Product fee

Penrith Building Society

2.99%

Two years

£999

Nationwide Building Society

3.49%

Two years

£999

Scottish Building Society

3.19%

Three years

£995

Barclays Mortgage

3.05%

Five years

£0.00

Nationwide Building Society

3.54%

Five years

£999

The availability of first-time buyer mortgages continues to be very low. This week, we have selected those first-time buyer mortgages that have the best rates across each term, as well as the best rate available to borrowers across the UK.


This week, the lowest two-year fixed rate first-time buyer mortgage is from Penrith Building Society. The rate is 2.99% (4.6% APRC) fixed for two years, after which it increases to 4.75% variable for the term. However, borrowers must live in Cumbria to qualify for this mortgage. It is available up to 90% LTV and has a product fee of £999.


The best two-year fixed rate for a first-time buyer available across the UK is from Nationwide Building Society. It offers a rate of 3.49% (3.7% APRC) fixed for two years, after which the rate increases to 3.59% variable for the term. The product fee is £999 and it includes the incentives of free valuation and £500 cashback. The mortgage is available up to 90% LTV.


This week, the lowest rate three-year fixed rate mortgage for first-time buyers is from the Scottish Building Society. It offers a rate of 3.19% (4.7% APRC) fixed for three years, after which the rate reverts to 4.94% variable for the term. The product fee is £995. The maximum LTV is 90% and this is only available to buyers in Scotland.


The best rate for a five-year fixed rate mortgage for first-time buyers this week is from Barclays Bank with its Springboard Mortgage. It has a rate of 3.05% (2.8% APRC) fixed until 31 January 2026, after which it reverts to 2.59% variable for the term. This is a form of guarantor mortgage and requires a family member to put the equivalent of 10% of the purchase price of the property into a Helpful Start Account through Barclays Bank. This account must remain open and untouched for five years or until the full redemption of the mortgage. The maximum LTV is 90% LTV.


The best five-year fixed rate for a first-time buyer available across the UK without the need for a guarantor is from Nationwide Building Society. It offers a rate of 3.54% (3.7% APRC) fixed for five years, after which the rate increases to 3.59% variable for the term. The product fee is £999 and it includes the incentives of free valuation and £500 cashback. The mortgage is available up to 90% LTV.

First-time buyer mortgages

All the rates available can be found on our first-time buyer chart.

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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