The best residential mortgage rates this week 04.09.20 | moneyfacts.co.uk

Michelle Monck

Michelle Monck

Consumer Finance Expert
Published: 04/09/2020

This week has seen some changes in the top mortgage rates available, as HSBC pulled its 90% loan-to-value (LTV) mortgages and increased rates across its fixed rate mortgage range. As a result, Leeds Building Society has now replaced the lender, with the best rates for two-year fixed rate mortgages for those needing to remortgage or moving home.

We’ve included the lowest mortgage rates available below for those wanting to remortgage, move home and for first-time buyers. Our tables list the deals with the lowest rates available directly from the lender, but we’ve also included some information about those rates that are even more competitive but only available from a mortgage broker. 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

Leeds Building Society

1.14% fixed

Two years

£1,999

West Brom Building Society

1.64% fixed

Three years

£0

Lloyds Bank

1.39% fixed

Five years

£999

The lowest rate for a two-year fixed rate remortgage this week is from Leeds Building Society. This mortgage has been available for a while and now reaches the top of the chart following HSBC increasing its remortgage rates. The mortgage from Leeds Building Society has an initial rate of 1.14% (4.5% APRC) fixed until 31 October 2022, after which the rate increases to 4.04% variable. This mortgage does have a hefty fee of £1,999 but it is available to those that need to borrow up 75% LTV. It also includes the incentive of free valuation.
The lowest rate for a three-year fixed remortgage is available from Platform, part of The Co-operative Bank. However, this lender only works through brokers, so borrowers will need to contact a mortgage broker to access this deal. It offers a rate of 1.45% (3.7% APRC) fixed until 31 December 2023 and has a fee of £1,499. As this is not available directly, we have excluded it from the chart.
Those wanting to apply for their mortgage directly with the mortgage lender will find the best rate for a three-year fixed rate remortgage is from West Brom Building Society. The rate is 1.64% (3.4% APRC) fixed until 30 November 2023, after which it reverts to 3.99% variable. There are no product fees and there are free valuations up to £740 and no legal fees.
Lloyds Bank has the lowest five-year fixed rate mortgage at 1.39% (2.8% APRC) fixed until 30 November 2025, after which the rate increases to 3.59% variable. The fee for this mortgage is £999 and it comes with free valuation and free legal fees. Those that are Club Lloyds account holders will also receive £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

Leeds Building Society

1.14% fixed

Two years

£1,999

Barclays Bank

1.72% fixed

Three years

£999

HSBC

1.41% fixed

Five years

£1,499

Leeds Building Society has again benefited from HSBC increasing its mortgage rates and is now top of the two-year fixed rate mortgage chart for those moving home. The building society’s rate is 1.14% (4.4%) fixed until 31 October 2022, and after this the rate increases to 4.04% variable for term. There is a product fee of £1,999 which is higher than any other lender with a rate in the top 10 in this category.

Those needing to add their fee to their mortgage balance should look at the overall total cost of this mortgage, because a slightly higher rate with a lower fee may have a total lower cost of interest. For example, a £218,000 mortgage over 25 years with the fee added to the mortgage would cost £22,100.28 over two years using the Leeds Building Society mortgage, compared to a cost of £21,340.52 from West Brom Building Society with its rate of 1.24% fixed and a £999. The West Brom Building Society mortgage is fixed until 30 November 2022, after which the rate increases to 3.99% variable. It also comes with free valuation up to £740. The West Brom Building Society mortgage is only available up to 60% LTV, while the Leeds building Society mortgage goes up to 75% LTV.
The best rate for a three-year fixed mortgage for moving home is from Platform, which is part of The Co-operative Bank, however it only offers mortgages through a mortgage broker. The rate is 1.45% (3.7% APRC) fixed until 31 December 2023, and after this it increases to 4.34% variable. The fee is £1,499 and it comes with free valuation and £250 cashback.

The best three-year fixed rate mortgage for those moving home and available directly from a lender is from Barclays Bank. It offers a rate of 1.72% (3.2 APRC) fixed until 31 October 2023, after which it increases to 3.59% variable. This mortgage is available to those wanting to borrow up to 75% LTV and the fee is £999. Free valuation is included.
HSBC has retained the top spot for the lowest rate five-year fixed rate mortgage for moving home. HSBC offers a rate of 1.41% (2.8% APRC) fixed until 31 December 2025 and after this it reverts to 3.54% variable. The fee is £1,499.

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

Penrith Building Society

2.99% fixed

Two years

£900

Buckinghamshire Building Society

3.59% fixed

Three years

£850

The choice of 90% first-time buyer mortgages has been restricted this week following the removal of HSBC’s products and some lenders restricting the postcode areas they will lend in.

The Penrith Building Society offers the lowest rate for a first-time buyer mortgage at 90% LTV this week. The north-west based building society offers the lowest rate available to all borrowers in Great Britain. The rate is 2.99% (4.6% APRC) fixed for two years and after this the rate increases to 4.75% variable. The fee is a modest £900 and free valuation is included.

This week, Buckinghamshire Building Society has the lowest three-year fixed rate available for first-time buyers in England and Wales. The rate is 3.59% (4.6% APRC) fixed until 30 November 2023, and after this the rate increases to 4.74% variable. This mortgage is a family assist deal, and means that the borrower’s parents’ or grandparents’ property is used as security against the mortgage. Borrowers can therefore get 100% LTV on this mortgage.

It charges £850 in product fees. There are no incentives with this deal.
Platform, a part of The Co-operative Bank, does offer a 90% LTV first-time buyer mortgage at a rate of 3.79% (4.4% APRC) fixed until 31 December 2023. After this, it reverts to 4.34% variable. The product fee is £1,499 and it includes free valuation, as well as £250 cashback. Borrowers interested in this deal will need to speak with a mortgage broker.

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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