The Best Residential Mortgage Rates 27.8.21 | moneyfacts.co.uk

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Derin Clark

Derin Clark

Online Reporter
Published: 27/08/2021

Consumers looking to move home may be disappointed to see that last week’s lowest two and three year fixed moving home mortgage rates are no longer available, however the mortgage deals in this chart remain highly competitive with sub-1% rates available on two, three and five year fixed deals. Meanwhile, first-time buyers will see that a new lower rate is now available in the two year fixed first-time buyer chart this week, with HSBC now offering the lowest rate of 1.99%.

To help homeowners and buyers to get an idea of what type of mortgage rates are available this week, we’ve highlighted the lowest rate in our chart below. Mortgage borrowers should be aware, however, that the lowest rate may not be the best or most cost effective deal and, instead, borrowers should consider a range of factors that will impact the overall cost of the mortgage. For example, product fees and incentives can have a significant impact on the overall 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 individual circumstances.

The best remortgage rates

Provider Rate Initial rate period Product fee  
TSB 0.84% fixed Two years £995 Speak to a broker
Santander 0.93% fixed Three years £999 Speak to a broker
HSBC 0.96% fixed Five years £1,499 Speak to a broker 

 

TSB continued to offer the lowest two year fixed rate in our remortgage chart this week. The TSB deal offers 0.84% (3.2% APRC) fixed until 30 November 2023, which then reverts to 3.59%. This deal is available to those who own 40% equity in their home – 60% loan-to-value (LTV) – and it charges £995 in product fees. It comes with the incentive of free valuation and legal fees.

The lowest rate in our three year fixed remortgage chart this week came from Santander, which offers 0.93% (2.8% APRC) fixed until 2 December 2024 and then reverts to 3.35%. It is available to those with 40% equity in their home (60% LTV) and charges £999 in product fees. This deal has the incentive of free valuation fees up to a maximum of £1,190 for those in England, Wales and Northern Ireland or £95 towards valuation fees for those in Scotland, along with £250 cashback on completion or free legal fees.

This week, HSBC continued to have the lowest rate in the five year fixed remortgage chart offering 0.96% (2.6% APRC) fixed until 30 November 2026, after which it reverts to 3.54%. It is available to homeowners who have 40% equity in their home (60% LTV) and it has a number of opening restrictions including needing a £75,000 minimum income. This deal charges £1,499 in product fees and comes with the incentive of free valuation and legal fees.

Compare remortgages

The best mortgage rates for home-movers

 

Provider

Rate

Initial rate period

Product fee

 

Platform

0.88% fixed

Two years

£1,499

Speak to a broker

Nationwide Building Society

0.94% fixed

Three years

£999

Speak to a broker

NatWest
 
NatWest Int Sols 
 
Royal Bank of Scotland

0.98% fixed
 
0.98% fixed
 
0.98%

Five years
 
Five years 
 
Five years

£995
 
£995
 
£995

Go to provider’s site
Speak to a broker
 
Go to provider’s site

 

The lowest moving home two year fixed mortgage rate this week came from Platform, which is part of the Co-operative Bank. Its deal offers 0.88% (3.8% APRC) fixed until 30 November 2023 and then reverts to 4.34%. It is available to those with a 40% deposit (60% LTV) and charges £1,499 in product fees. This deal has the incentive of free valuation fees and £250 cashback.

Nationwide Building Society had the lowest three year fixed moving home mortgage rate this week offering 0.94% (3.0% APRC) fixed for three years and then reverts to 3.59%. This deal is available to home movers with a 40% deposit (60% LTV) and charges £999 in product fees. It comes with the incentive of free valuation fees, as well as a green reward of up to £500 for eligible properties.

For those looking for a five year fixed moving home mortgage, three deals offered the lowest rate this week. NatWest, NatWest Int Sols – which is only available through mortgage brokers, and Royal Bank of Scotland all had deals offering 0.98% (2.6% APRC) fixed until 30 November 2026, after which they revert to 3.59%. These deals are available to those with a 40% deposit (60% LTV) and charge £995 in product fees. The NatWest and Royal Bank of Scotland deals come with the incentive of £350 cashback, while the deal from NatWest Int Sols has the incentive of free valuation fees to a maximum of £2 million of the house purchase price and £350 cashback.

Compare moving home mortgages

The best first-time buyer mortgages

 

Provider

Rate

Initial rate period

Product fee

 

HSBC

1.99% fixed

Two years

£999

Speak to a broker

Digital Mortgages by Atom Bank

2.64% fixed

Five years

£1,500

Speak to a broker

 

This week the lowest rate in the two year fixed first-time buyer chart came from HSBC which offers 1.99% (3.4% APRC) fixed until 30 November 2023 and then reverts to 3.54%. It is available to those with a 10% deposit (90% LTV) and charges £999 in product fees. It comes with the incentive of free valuation fees.

Digital Mortgages by Atom Bank has the lowest five year fixed first-time buyer mortgage deal this week offering 2.64% (3.3% APRC) fixed until 30 November 2026 and then reverts to 3.50%. This deal is available to first-time buyers with a 10% deposit (90% LTV) and a minimum mortgage loan of £100,000 must be taken. It charges £1,500 in product fees and has the incentive of free valuation 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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