The best residential mortgage rates this week 02.10.20 | moneyfacts.co.uk

Michelle Monck

Michelle Monck

Consumer Finance Expert
Published: 02/10/2020

All the best mortgage rates are still available this week to those moving home or needing a remortgage. However further down the mortgage rate tables there have been some changes with providers launching new ranges and increasing rates.
Newcastle Building Society launched a new range of fixed rate mortgages with £500 cashback. Kensington also launched a new mortgage range aimed at those needing a mortgage for a property of non-standard construction. Reliance and Aldermore both relaunched a range of mortgages this week.
Interest rate increases were announced on selected mortgages by Santander, HSBC, Nationwide Building Society, Darlington Building Society and Cumberland Building Society. There was a series of product withdrawals made by Leeds Building Society, Yorkshire Building Society, Barclays and Clydesdale and Yorkshire Banks.
The charts below show the best mortgage rates for those wanting to remortgage, move home and for first-time buyers. We list the best mortgage deals available directly from the lender that are available across Great Britain. All the rates shown are for those mortgages available at 60% LTV unless otherwise stated.

The best remortgage rates

Provider

Rate

Initial rate period

Product fee

Lloyds Bank

1.17% fixed

Two years

£999

Barclays

1.72% fixed

Three years

£999

Lloyds Bank

1.39% fixed

Five years

£999

For the second week in a row the best rates for remortgages across two, three and five-year fixed terms is unchanged.
Lloyds Bank has the lowest mortgage rates for two and five-year fixed rate remortgages again this week. Its two-year fixed rate remortgage is at 1.17% (3.3% APRC) fixed until 30 November 2022. The rate increases to 3.59% after this. This mortgage has a fee of £999 and comes with free valuation and legal fees. Its five-year fixed rate remortgage has the lowest rate available at 1.39% (2.8% APRC) fixed until 30 November 2025, after this the rate increases to 3.59%. There is a fee of £999 and free valuations and legal fees. £200 cashback is available for those with a Club Lloyds account.

The lowest three-year fixed rate remortgage is from Barclays Bank. It offers a rate of 1.72% (3.2% APRC) fixed until 31 October 2023. The rate increases to 3.59% after this. It is available up to 75% loan-to-value (LTV) and the fee is £999. There are free legal and valuation fees. This mortgage is also available to those buying a home.

The best 80% LTV two-year fixed rate remortgage is from Lloyds Bank at 1.50% fixed until 30 November 2022. After this the rate increases to 3.59%. The fee is £999 and there are free valuation and legal fees. Club Lloyds account holders can also get £200 cashback.

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

Virgin Money

1.24% fixed

Two years

£1,495

Barclays Bank

1.72% fixed

Three years

£999

NatWest

1.55% fixed

Five years

£995

Barclays Bank

1.99% fixed

Ten years

£999

Virgin Money has a second week with the lowest rate two-year fixed rate mortgage for those moving home. They offer a rate of 1.24% (3.8% APRC) until 1 January 2023 and the rate will revert to 4.34% after this end date. The fee is significantly higher than available on many other mortgages at £1,495. The maximum LTV available for this mortgage is 65% and there are free valuation fees available.


Barclays Bank dominates the remainder of the best mortgage rates for home movers, with the top rates for three and ten-year fixed rate mortgages. Barclays Bank’s three-year fixed rate mortgage has a rate of 1.72% (3.2 APRC) fixed until 31 October 2023 after which the rate increases to 3.59%. This mortgage is available up to 75% LTV and the fee is £999. Free valuation fees are available. This mortgage is also available to those wanting to remortgage, it then offers free valuation and legal fees.


NatWest offers the lowest five-year fixed rate mortgage for moving home with a rate of 1.55% (2.9% APRC) fixed until 31 December 2025, after this the rate increases to 3.59%. There is a fee of £995 and this mortgage offers £250 cashback.

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

Nationwide Building Society

3.24% fixed at 90% LTV

Two and five years

£999

Metro Bank

3.99% fixed at 90%

Five years

£999

Virgin Money

3.89% fixed at 90%

Ten years

£995

Al Rayan Bank (home purchase plans only)

4.49% fixed at 90%

Two years

£999

The best rates for first-time buyers at 90% LTV has only seen one change this week.
Nationwide Building Society offers continues to offer a rate of 3.24% (3.6% APRC) fixed for two or five years after which the rate increases to 3.59%. There is a fee of £999, free valuations and £500 cashback available. Nationwide Building Society has specific rules and restrictions about the types of property they will accept and for gifted deposits from family members.


An alternative to Nationwide Building Society for a five-year fixed rate first-time buyer mortgage is from Metro Bank. They offer a rate of 3.99% (3.9% APRC) for five years and the rate increases to 3.60% after this. The fee is £999 and there are no additional incentives.
Those first-time buyers wanting a short term of two years fixed can also consider a home purchase plan from Al Rayan Bank. This is an alternative to a mortgage, where the bank will buy the property and become its legal owner. The applicant will lease the property from the bank, but they retain the right to sell it when they wish and when the fixed rate period is over they can buy it back from the bank at the same price as paid originally. We explain more in our guide to home purchase plans. Al Rayan Bank offers a rate of 4.49% (4.4% APRC) fixed until 31 December 2022 reverting to 4.09%. There is a product fee of £999 and help towards legal fees up to a maximum of £400.

Those happy to fix for longer could consider the ten-year fixed rate mortgage from Virgin Money at 3.89% (4.1% APRC) fixed until 1 January 2031, after which the rate reverts to 4.09%. The fee is £995 and there are free valuation fees.


Those not able to get a mortgage with the lenders above can also consider using a guarantor mortgage, using a Help to Buy to boost their deposit (as long as purchasing a new build) or speaking with a mortgage broker who can review the whole market.

First-time buyer mortgages

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

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.

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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