The Best Mortgage Rates This Week 03.07.20 | moneyfacts.co.uk

Derin Clark

Derin Clark

Online Reporter
Published: 03/07/2020

This week, the Nationwide House Price Index revealed that house price growth has turned negative for the first time since 2012. Although the housing market is facing a challenging time at the moment, the mortgage market remains highly competitive among the lower loan-to-values (LTVs). For homeowners looking to remortgage or those with a substantial deposit, this means that there are some highly competitive deals available in the charts at the moment.

While the mortgage rate is important when choosing a deal, borrowers need to consider more than just the initial rate when looking for a mortgage. Factors such as fees, interest rate type and flexibility in a mortgage should also form part of the decision-making process. 

The best remortgage rates

Provider Rate Initial rate period Product fee
Lloyds Bank 1.13% fixed Two years £999
Barclays Mortgage
HSBC
1.29% fixed
1.29% fixed
Three years
Three years
£999
£999
Lloyds Bank 1.35% fixed Five years £999

Homeowners looking to remortgage at a 60% LTV will find that Lloyds Bank continued to offer the lowest remortgage rate this week. It offers a rate of 1.13% (3.3% APRC) fixed until 31 August 2022, which then reverts to 3.59% variable. This deal charges £999 in product fees and comes with the incentive of free valuation and no legal fees. Lloyds Bank also offers the lowest rate for those looking to remortgage at a 60% LTV and lock into a five-year deal. It offers 1.35% (2.8% APRC) fixed until 31 August 2025, after which it reverts to 3.59% variable. This deal has the same terms and conditions as the two year fixed rate mortgage.

For those looking to remortgage at a 60% LTV and wanting to lock into a three-year deal, both Barclays Mortgage and HSBC had the lowest rate of 1.29% this week. Barclays Mortgage offers 1.29% (3.1% APRC) fixed until 31 July 2023, which then reverts to 3.59% variable. This deal charges £999 in product fees and comes with the incentives of free valuation and no legal fees. HSBC offers 1.29% (3.1% APRC) fixed until 30 September 2023, reverting to 3.54% variable thereafter. This deal also charges £999 in product fees. It comes with the incentives of free valuation and no legal fees.

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 fees
Barclays Mortgage 1.09% fixed Two years £999
HSBC
Barclays Mortgage
1.29% fixed
1.29% fixed
Three years
Three years
£999
£999
HSBC 1.36% fixed Five years £1,499

The lowest moving home two year fixed mortgage rate at a 60% LTV is from Barclays Mortgage, which offers 1.09% (3.3% APRC) fixed until 31 July 2022, after which it reverts to 3.59% variable. This deal charges £999 in product fees and comes with the incentive of free valuation.

Home-movers looking for a three year fixed deal at 60% LTV will find that both HSBC and Barclays Mortgage had the lowest rate of 1.29% this week. HSBC offers 1.29% (3.0% APRC) fixed until 30 September 2023, reverting to 3.54% variable thereafter. This deal charges £999 in product fees. It includes the incentive of free valuation. Barclays Mortgage offers 1.29% (3.1% APRC) fixed until 31 July 2023, which then reverts to 3.59% variable. It charges £999 in product fees and comes with the incentive of free valuation for properties valued up to a maximum of £2m.

For those looking to lock into a five year fixed deal at a 60% LTV, HSBC has the lowest rate of 1.36% (2.8% APRC) fixed until 30 September 2025, and then reverting to 3.54% variable. There are a number of opening restrictions on this mortgage, including having a minimum earned income of £75,000. This deal charges £1,499 in product fees. It comes with the incentive of free valuation.

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 fees
first direct 2.09% fixed Two years £490
HSBC 2.39% fixed Three years £999
HSBC 2.46% fixed Five years £1,499

First-time buyers looking for a 90% LTV will find that first direct had the lowest rate this week, offering 2.09% (3.4% APRC) fixed for two years, which then reverts to 3.54% variable. This deal charges £490 in product fees. It comes with the incentive of free valuation.
The lowest first-time buyer rate in the three year fixed chart at a 90% LTV came from HSBC, which offers 2.39% (3.3% APRC) fixed until 30 September 2023, which then reverts to 3.54% variable. It charges £999 in product fees and comes with the incentive of free valuation.

HSBC also offered the lowest rate in the five year fixed first-time buyer chart at a 90% LTV. It offers 2.46% (3.2% APRC) fixed until 30 September 2025, reverting to 3.54% variable thereafter. Borrowers should be aware that this deal has opening restrictions, including a minimum earned income of £75,000. It charges £1,499 in product fees and comes with the incentive of free valuation.

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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