The Best Mortgage Rates This Week 05.06.20 | moneyfacts.co.uk

Derin Clark

Derin Clark

Online Reporter
Published: 05/06/2020

Earlier in the week, the Nationwide House Price Index revealed the full extent of the impact of the UK lockdown on the housing market, as during May house prices saw the biggest month-on-month fall since 2009. As the social distancing rules are slowly eased it is hoped that the housing market will bounce back and already mortgage lenders are starting to reintroduce deals.

Despite the slowing down of the housing market, the mortgage market remains highly competitive, with low rates across the mortgage charts. While we’ve highlighted the lowest rates available, when looking for the best deal, borrowers should consider a range of factors such as flexible features and incentives, along with rate. Alternatively, a mortgage broker will be able to provide the best options for a borrower’s individual circumstances.

The best mortgage rate for home-movers

Provider Rate Initial rate period Product fee
Cumberland Building Society 1.13% discounted variable Two years £1,999
HSBC 1.14% fixed Two years £999
HSBC 1.29% fixed Three years £999
HSBC 1.39% fixed Five years £999

The lowest rate available in the moving home mortgage chart this week for those located in all areas of Great Britain was from Cumberland Building Society, which offers 1.13% (3.7% APRC) discounted variable for two years and then reverts to 4.09% variable. This deal has a minimum loan of £200,000 and is available to those looking for a 60% loan-to-value (LTV). It charges £1,999 in product fees and comes with the incentive of free valuation.

HSBC continued to offer the lowest rates in the two, three and five year fixed moving home mortgage charts this week. In the two year chart, it offers a rate of 1.14% (3.2% APRC) fixed until 30 September 2022, which then reverts to 3.54% variable, while in the three year chart, it offers 1.29% (3.0% APRC) fixed until 30 September 2023 and then reverts to 3.54% variable. Both these deals are available to those looking for a 60% LTV. If they are being applied for as a joint mortgage, a joint minimum earned income of £15,000 is needed. Both deals charge £999 in product fees and come with the incentive of free valuation.

In the five year moving home chart, the lowest rate on a deal that does not have highly restrictive opening conditions is from HSBC, which offers 1.39% (2.7% APRC) fixed until 30 September 2025, reverting to 3.54% thereafter. This deal has the same terms and conditions as the two and three year fixed deals.

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 3.09% fixed Two years £999
Nationwide Building Society 3.39% fixed Three years £999
Barclays Mortgage 2.75% fixed Five years £0

The lowest rate available in the two year fixed first-time buyer chart this week came from Nationwide Building Society, which offers 3.09% (3.6% APRC) fixed for two years, reverting to 3.59% variable thereafter. This deal is available to those looking for a 95% LTV. It charges £999 in product fees and comes with the incentives of free valuation and £500 cashback.

For those located in all areas of Great Britain, Nationwide Building Society also had the lowest rate in the three year fixed first-time buyer chart. It offers a rate of 3.39% (3.7% APRC) fixed for three years, reverting to 3.59% variable thereafter. This deal has the same terms and conditions as the two year fixed mortgage.

The lowest rate available in the five year fixed first-time buyer chart came from Barclays Mortgage. This deal offers a rate of 2.75% (2.7% APRC) fixed until 31 July 2025, which then reverts to 2.59% variable. It does not charge any product fees and comes with the incentive of free valuation for properties valued to a maximum of £2m. This is a family assisted mortgage and additional terms and conditions apply.

First-time buyer mortgages

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

The best remortgage rates

Provider Rate Initial rate period Product fee
HSBC 1.14% fixed Two years £999
HSBC 1.29% fixed Three years £999
HSBC 1.39% fixed Five years £999

Offering the lowest rates in the two, three and five year fixed remortgage charts this week was HSBC. In the two year chart it offers a rate of 1.14% (3.2% APRC) fixed until 30 September 2022, which then reverts to 3.54% variable. In the three year chart, it offers 1.29% (3.0% APRC) fixed until 30 September 2023, reverting to 3.54% variable thereafter. Both deals are available to those looking for a 60% LTV. For those applying for these deals as a joint mortgage, a minimum earned income of £15,000 is needed. They both charge £999 in product fees and come with the incentives of free valuation and no legal fees.

The lowest rate in the five year fixed remortgage chart on a deal without highly restrictive opening restrictions is from HSBC, offering 1.39% (2.8% APRC) fixed until 30 September 2025 and then reverts to 3.54% variable. This mortgage has the same terms and conditions and the two and three year deals.

Remortgages

All the rates available can be found on our remortgage chart.

Borrowers who are interested in any of these deals can speak to a mortgage broker. Speak To A Broker today for more information.

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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