The best residential mortgage rates 4.12.20 | moneyfacts.co.uk

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Michelle Monck

Michelle Monck

Consumer Finance Expert
Published: 04/12/2020

This week product launches from Platform, a part of The Co-operative bank and TSB have reduced some of the very best mortgage rates available to borrowers.


We’ve highlighted the lowest rates available in the remortgage and moving home charts, as well as some of the best deals in the first-time buyer mortgage chart. All deals shown are at 60% loan-to-value (LTV) unless stated otherwise.


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 they compare mortgages.

The best remortgage rates

Provider

Rate

Initial rate period

Product fee

Platform, a part of The Co-operative Bank*

1.09% fixed

Two years

£1,499

Lloyds Bank

1.17% fixed

Two years

£999

Coventry Building Society

1.45% fixed

Three years

£999

Platform, a part of The Co-operative Bank*

1.29% fixed

Five years

£1,499

Lloyds Bank

1.39% fixed

Five years

£999

Nationwide Building Society

1.39% fixed

Five years

£999

TSB

1.39% fixed

Five years

£995

Virgin Money

1.39% fixed

Five years

£1,495

*Only available through a mortgage broker.

This week those wanting to remortgage will find a new best rate available from Platform, a part of The Co-operative Bank. Borrowers can only access this mortgage by speaking to a mortgage broker. Its two-year fixed rate remortgage is 1.09% (3.9% APRC) fixed until 31 March 2023 after which it increases to 4.34% variable. The fee is £1,499 and there are free legal fees, free valuation and £250 cashback available.

Borrowers that need to add the fee to their mortgage should compare the total cost of borrowing across the term with other mortgage rates. A mortgage broker should do this as part of their advice process.
Those borrowers wanting to deal directly with a lender can also consider Lloyds Bank offering a two-year fixed rate remortgage at 1.17% (3.3% APRC) fixed until 28 February 2023. After this, the rate increases to 3.59% variable. This deal has a fee of £999 and comes with the incentive of a free valuation and free legal fees, as well as £200 cashback for those with a Club Lloyds current account.


Those borrowers needing a mortgage up to 65% LTV can access the lowest three-year fixed rate remortgage from Coventry Building Society. This mortgage deal has a rate of 1.45% (3.8% APRC) fixed until 31 December 2023, after which it reverts to 3.99% variable. This mortgage has a £999 fee and offers free valuation (up to a maximum of £670) and free legal fees.


Borrowers benefit from more choice in the best rates for five-year fixed rate remortgages with a new product launched this week from Platform, a part of The Co-operative Bank. It offers a rate of 1.29% (3.2% APRC) fixed until 31 March 2026, after which it reverts to 4.34% variable. The fee is £1,499 and there are free legal fees, free valuation and £250 cashback available. This mortgage is only available through a mortgage broker.


Borrowers wanting to speak to a lender directly will find a choice of four offering the best rate for a remortgage over five-years. Lloyds Bank, Nationwide Building Society, Virgin Money and TSB all offer a rate of 1.39%, but each mortgage has a different product fee and borrowers that plan to add the fee to their mortgage will find a higher fee could result in them paying more over the five-year term.
The TSB has the lowest product fee of £995 and their rate of 1.39% (2.8% APRC) is fixed until 28 February 2026 after which the rate increases to 3.59%. There are free valuations and free legal fees available.


Lloyds Bank and Nationwide Building Society both have a fee of £999, with Virgin Money charging the most at £1,495. Lloyds Bank has a rate of 1.39% (2.8% APRC) fixed until 28 February 2026, after which it reverts to 3.59% variable. There is a free valuation and free legal fees. Nationwide Building Society has a rate of 1.39% (2.8% APRC) fixed for five years, after which it reverts to 3.59% variable. There is a free valuation and free legal fees or £500 cashback on completion. Virgin Money offers a rate of 1.39% (3.1% APRC) fixed until 1 March 2026, after which it reverts to 4.34% variable. It comes with the incentives of free valuation and no legal fees. While this deal has a higher fee, it is available to those needing to borrow up to 65% LTV unlike the deals from TSB, Nationwide and Lloyds with a maximum 60% LTV.

Compare remortgages

The best mortgage rates for home-movers

Provider

Rate

Initial rate period

Product fee

Platform, a part of The Co-operative Bank*

1.09%

Two years

£1,499

Clydesdale Bank

1.19% fixed

Two years

£1,999

Barclays Mortgage

1.49% fixed

Three years

£999

Platform, a part of The Co-operative Bank*

1.29%

Five years

£1,499

Virgin Money

1.39% fixed

Five years

£1,495

*Only available through a mortgage broker.

Platform, a part of The Co-operative Bank launched top rates for home movers this week over two and five-year fixed terms but it’s mortgages are only available through a mortgage broker. It’s rate of 1.09% (3.8% APRC) is fixed until 31 March 2023 after which the rate increases to 4.34% variable. It has a fee of £1,499 and there are free legal fees and free valuation, plus £250 cashback. Borrowers that need to add the fee to their mortgage should compare the total cost of borrowing across the term with other mortgage rates. A mortgage broker should do this as part of their advice process.


Borrowers wanting to deal with a lender directly will find the lowest two-year fixed rate mortgage for moving home this week continues to be from Clydesdale Bank. Its rate of 1.19% (4.1% APRC) is fixed until 31 January 2023 and after this it increases to 4.55% variable. This deal is available for those looking for a 75% LTV. It charges £1,999 in product fees. There are no incentives with this deal.


The lowest three-year fixed moving home mortgage rate is from Barclays Bank, offering a rate of 1.49% (3.1% APRC) fixed until 31 January 2024, after which it reverts to 3.59% variable. The fee for this mortgage is £999 and there is a free valuation for properties valued up to a maximum of £2 million.
In the five-year fixed moving home chart, the lowest rate this week is from Platform, a part of The Co-operative Bank with a rate of 1.29% fixed until 31 March 2026. After this rate increases to 4.34% variable. The fee is £1,499 and there are free legals and free valuation available, plus £250 cashback. This mortgage is only available through a mortgage broker. Borrowers should compare the total cost of their borrowing over term, especially if they plan to add their fees to their mortgage. A mortgage broker should do this as part of their advice process.


The best mortgage rate over five-years directly from a lender is from Virgin Money, offering 1.39% fixed until 1 March 2026 and then reverts to 4.34% variable. This deal is available to those looking for a 65% LTV. There is a £1,495 fee for this mortgage and it comes with the incentive of a free valuation.

Compare moving home mortgages

The best first-time buyer mortgage rates

Provider

Rate

Initial rate period

Product fee

Platform, a part of The Co-operative Bank*

3.24%

Two years

£1,499

Nationwide Building Society   

3.49% fixed

Two years

£999

Platform, a part of The Co-operative Bank*

3.39%

Five years

£1,499

Barclays Mortgage

3.05% fixed

Five years

£0

*Only available through a mortgage broker.

First-time buyers looking for the lowest rate for a two-year fixed rate mortgage can choose between speaking directly to Nationwide Building Society offering a rate of 3.49% or by talking to a mortgage broker to find out more about a rate of 3.24% available from Platform, a part of the Co-operative Bank. Platform does not accept enquiries for its mortgages directly from borrowers, so those wanting to take advantage of their 3.49% fixed rate mortgage will need to contact a mortgage broker.


The mortgage from Platform launched this week and has a rate of 3.24% (4.3% APRC) fixed until 31 March 2023 after which it increases to 4.34% variable. It is available at 90% LTV, has a fee of £1,499 and there is a free valuation and £250 cashback available. Platform also offers a slightly higher rate of 3.34% fixed on the same terms but with a lower fee of £999.


The best rate for a two-year fixed rate first-time buyer mortgage available directly was from Nationwide Building Society. They offer a 3.49% (3.7% APRC) fixed for two years, after this it increases to 3.59% variable. This deal is available at a 90% LTV and charges £999 in product fees. It comes with the incentives of a free valuation and £500 cashback.


First-time buyers wanting a fixed five-year term at 90% LTV will find the best rate available is new to the market this week and is from Platform, a part of The Co-operative Bank. The rate is 3.39% (4.1% APRC) fixed until 31 March 2026, after this the rate increases to 4.34% variable. There is a fee of £1,499 and there are a free valuation and £250 cashback. Platform also offer the same terms at a higher rate of 3.49% but with a lower fee of £999.


The most competitive rate for a five-year fixed first-time buyer mortgage requiring a guarantor remains from Barclays with its Springboard Mortgage. This deal has a competitive rate of 3.05% (2.8% APRC) fixed until 31 January 2026 after the rate moves to 2.59% variable. This is available at 95% LTV (a higher rate is applicable for those wanting a 100% LTV mortgage). This is a guarantor mortgage meaning borrowers need to have a family member prepared to use the equity in their own home or their savings to boost their mortgage deposit. There are no product fees and there is a free valuation available up to a maximum of £2 million.

Compare first-time buyer mortgages

Speak to a broker for help to get a mortgage

Contact our preferred mortgage broker to find out more about the best deals available and for help in finding a mortgage lender.

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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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