Derin Clark

Derin Clark

Online Reporter
Published: 08/06/2019

Residential mortgage market data from Moneyfacts.co.uk revealed that the gap between two-year and five-year fixed rate mortgages is at its lowest difference in seven years. For borrowers, this means that they will not be paying a significantly higher rate for the security of locking their mortgage into a longer, five-year term.

Moving home mortgage rates

  • Cumberland Building Society – 1.26% discounted variable
  • Furness Building Society – 1.29% discounted variable
  • NatWest – 1.34% variable

The best mortgage rates in the moving home chart this week were all variable rates, which for borrowers happy to take the risk of rate changes, there are some competitive rates around. Topping the chart this week was Cumberland Building Society offering 1.26% discounted variable (4.3% APRC) for two years on a 60% loan-to-value (LTV). After the discounted two-year period ends it reverts to 4.74% variable. This mortgage charges £1,999 in product fees and allows overpayments.   

In second place this week was Furness Building Society offering 1.29% discounted variable (5.1% APRC), collared at 1.29%, for two years on a 60% LTV. When the two-year discounted period ends it reverts to 5.79%. A £999 product fee is charged with this mortgage and it includes the incentive for remortgages of free valuation (up to a maximum of £665). Overpayments are permitted. Taking third place this week was NatWest offering 1.34% variable (3.8% APRC) until 31 October 2021 on a 60% LTV, after which it reverts to 4.24% variable. This mortgage charges £995 in product fees but includes the incentive of £250 cashback and allows overpayments.

First-time buyer mortgage rates

  • Loughborough Building Society – 1.99% discounted variable
  • Marsden Building Society – 2.54% discounted variable
  • Monmouthshire Building Society – 2.55% discounted variable

As with the moving home chart, the rates topping the first-time buyer chart this week are all variable rates. Topping the chart was Loughborough Building Society offering 1.99% discounted variable (4.9% APRC), collared at 1.50%, for two years on a 95% LTV. After the discounted period ends, the rate reverts to 5.34% variable. A product fee of £999 is charged and it allows overpayments. In second place this week is Marsden Building Society offering 2.54% discounted variable (5.6% APRC) until 30 September 2021 on a 95% LTV, after which it reverts to 6.20%. There is a product fee of £1,139 and it includes the incentive of free valuation for properties valued to a maximum of £500,000. Overpayments are allowed. Third place this week went to Monmouthshire Building Society offering a discounted variable rate of 2.55% (4.9% APRC) for two years on a 95% LTV, after which it reverts to 5.24%. There are no product fees and it includes the incentive of free valuation for properties valued up to £1m. It also allows overpayments.

Remortgage rates

  • Cumberland Building Society – 1.26% discounted variable
  • Furness Building Society – 1.29% discounted variable
  • Cumberland Building Society – 1.37% discounted variable

Those remortgaging will have to choose a variable rate mortgage in order to get the best rates in the remortgage chart this week. Cumberland Building Society was offering the best rate in the chart of 1.26% discounted variable (APRC 4.3) for two years on a 60% LTV that reverts to 4.74% variable after the discounted period has ended. A product fee of £1,999 is charged with this mortgage and it offers the incentive of free valuation and free legal fees. It allows overpayments.

Second place in the chart this week was Furness Building Society offering 1.29% discounted variable rate (APRC 5.2%), collared at 1.29%, for two years on a 60% LTV. After this period, it reverts to 5.79% variable. This mortgage charges £999 in product fees and includes the incentives of free valuation (up to a maximum of £665) and free legal fees in England and Wales or £150 towards legal fees for other regions. Overpayments are allowed.

Cumberland Building Society was also in third place in the remortgage chart this week offering 1.37% discounted variable (APRC 4.3%) for two years on a 60% LTV, after which it reverts to 4.74% variable. To get this deal, mortgage borrowers need to pay £699 in product fees, but it does include the incentives of free valuation and free legal fees. Overpayments are allowed. 

Best fixed rate mortgages

  • Furness Building Society – 1.39%
  • Halifax – 1.39%
  • Barclays – 1.44%

Those wanting a fixed rate mortgage at 60% LTV could get 1.39% fixed for two-years from two providers this week. Furness Building Society was offering a two-year deal for 1.39% fixed reverting to 5.79% variable (5.2% APRC) with a product fee of £1250. This product is available to first-time buyers, those moving home and borrowers wanting to remortgage. Overpayments are allowed, and for remortgagers the incentive of free valuation (up to £665) is included.

Halifax was also offering the same initial rate for a 60% LTV but reverting to a lower 4.24% variable (3.8% APRC) for the remainder of the term. This deal Is only available to those moving home and is not open to first-time buyers or those looking to remortgage. The product fee is lower than the Furness BS product at £995 and it allows overpayments and payment holidays.

Barclays was third in the fixed rate table this week, with their 60% LTV fixed rate mortgage offering a rate of 1.44% to 31 July 2021, reverting to 4.24% variable for the remaining term. The APRC is 3.8%. The product fee for this deal was £999 and it allows overpayments.

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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