The Best Residential Mortgage Rates 29.01.21 | moneyfacts.co.uk

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Derin Clark

Derin Clark

Online Reporter
Published: 29/01/2021

This week we reported that the rate difference between a two and five-year fixed mortgage deal had fallen, which could make five year deals more attractive to borrowers. Saying this, a long-term mortgage deal is not the right choice for all homeowners and we’ve highlighted some of the considerations that need to be taken into account when choosing between a short and long-term mortgage deal.

Below we’ve highlighted the lowest rates available in the mortgage charts, but these deals may not be the best option for their circumstances. Instead, when comparing deals borrowers should consider a range of factors including product fees, incentives and flexibility to determine the best deal. Those unsure of which deal is the best option for them, should consider speaking to a mortgage broker who will be able to provide help and advice in choosing the best option.

The best remortgage rates

Provider Rate Initial rate period Product fee
Lloyds Bank 1.09% fixed Two years £1,499
Leeds Building Society 1.35% fixed Three years £999
Halifax 1.27% fixed Five years £1,495

 

Lloyds Bank continued to have the lowest two year fixed remortgage deal this week, offering 1.09% (3.2% APRC) fixed until 31 May 2023 and then reverts to 3.59%. Homeowners applying for this deal must have a 60% loan-to-value (LTV). It requires a minimum loan of £250,000 and charges £1,499 in product fees. This deal comes with the incentive of a free valuation, no legal fees and £200 cashback.

Leeds Building Society had the lowest rate in our three year fixed remortgage chart this week. Its deal offers 1.35% (4.2% APRC) fixed until 29 February 2024, which then reverts to 4.04%. It is available to those with a 60% LTV and charges £999 in product fees. The deal comes with the incentive of a free valuation to a maximum of £999 and help towards costs.

The lowest five year fixed remortgage rate this week came from Halifax, offering 1.27% (2.7% APRC) fixed until 31 May 2026 and then reverts to 3.59%. This deal is available to those looking for a 60% LTV and requires a minimum loan of £250,000. It charges £1,495 in product fees and comes with the incentive of a free valuation and free legal fees.

Compare remortgages

The best mortgage rates for home-movers

Provider Rate Initial rate period Product fee
Skipton Building Society 1.14% fixed Two years £995
Leeds Building Society 1.35% fixed Three years £999
NatWest Int Sols 1.33% fixed Five years £995

 

The lowest rate in the two year fixed moving home chart this week came from Skipton Building Society, which offers 1.14% (3.8% APRC) fixed until 30 April 2023, after which it reverts to 3.64%. This deal requires a 60% LTV. It charges £995 in product fees and comes with the incentive of a free valuation.

Leeds Building Society had the lowest three year fixed moving home mortgage deal this week. It offers 1.35% (4.2% APRC) fixed until 29 February 2024 and then reverts to 4.04%. This deal is available to borrowers with a 60% LTV. It charges £999 in product fees and comes with the incentive of a free valuation to a maximum of £999.

Borrowers looking for a five-year fixed moving home deal will find the lowest rate once again came from NatWest Int Sols this week. It offers 1.33% (2.7% APRC) fixed until 30 June 2026, and then reverts to 3.59%. This deal is available to those with a 60% LTV and is only available through intermediaries on properties with an energy performance rating of A or B. It charges £995 in product fees. It comes with the incentive of a free valuation for properties valued to a maximum of £2 million and £250 cashback.

Compare moving home mortgages

The best first-time buyer mortgage rates

Provider Rate Initial rate period Product fee
Nationwide Building Society 3.24% fixed Two years £999
Tipton & Coseley Building Society 3.09% fixed Five years £0

 

Continuing to offer the lowest two-year first-time buyer rate on a deal without location restrictions was Nationwide Building Society. This deal offers 3.24% (3.6% APRC) fixed for two years and then reverts to 3.59%. It is available at a 90% LTV and charges £999 in product fees. The deal comes with the incentive of a free valuation and £500 cashback.

The lowest rate in the first-time buyer five-year fixed chart was from Tipton & Coseley Building Society, which offers 3.09% (4.2% APRC) fixed until 30 April 2026, after which it reverts to 4.94%. This is a family assist mortgage deal and is available at a 99% LTV, although the borrower can opt to put a deposit of a maximum of 10%, the remaining deposit of up to 20% is required via Tipton’s collateral charge option or a savings deposit option. There are no products fees charged on this deal.

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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