The Best Mortgage Rates This Week 07.08.20 | moneyfacts.co.uk

Derin Clark

Derin Clark

Online Reporter
Published: 07/08/2020

Although the stamp duty threshold increased to £500,000 last month has made it a very attractive time to move home – as our story Is now a good time to move home? highlights – there are several factors homeowners should consider before moving. For those who are in the process of buying a new home, our story on How to fast track your mortgage application post-Covid-19 lockdown offers some tips on ensuring that the mortgage application goes through as quickly as possible.

Overall, mortgage rates have remained highly competitive this week and below we have highlighted the lowest rates available in the charts overall. While getting a low rate is important when considering a mortgage deal, borrowers should keep in mind that the lowest rate might not be the best deal overall and instead they should consider factors such as incentives, product fees and flexible features when choosing a product. Borrowers who need help in deciding which mortgage is right for them should consider speaking to a mortgage broker.

The best remortgage rates

Provider Rate Initial rate period Product fee
Lloyds Bank 1.13% fixed Two years £999
West Brom Building Society 1.39% fixed Three years £999
Lloyds Bank 1.35% fixed Five years £999

 

Homeowners looking to remortgage on a two year fixed deal at a 60% loan-to-value (LTV) will find that Lloyds Bank offered the lowest rate in the chart this week. It offers 1.13% (3.2% APRC) fixed until 30 November 2022, 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. Those looking to remortgage at a 60% LTV but who are looking for a five year fixed deal will find that Lloyds Bank also offers the lowest rate in this chart. Its five year deal offers 1.35% (2.8% APRC) fixed until 30 November 2025, after which it reverts to 3.59% variable. This deal has the same terms and conditions as the two year fixed deal.

For those who want to fix into a three year fixed remortgage deal at a 60% LTV, West Brom Building Society has the lowest rate of 1.39% (3.4% APRC) fixed until 30 September 2023, which then reverts to 3.99% variable. This deal is only available for those located in England and Wales. It charges £999 in product fees and comes with the incentives of free valuation (up to a maximum of £740) 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
Leeds Building Society 1.14% fixed Two years £1,999
West Brom Building Society 1.34% fixed Three years £999
NatWest 1.41% fixed Five years £995

 

The lowest rate in the two year fixed moving home chart at a 75% LTV came from Leeds Building Society this week. It offers 1.14% (4.4% APRC) fixed until 31 October 2022, which then reverts to 4.04% variable. This deal charges £1,999 in product fees and comes with the incentive of free valuation (up to a maximum of £999).

Those looking for a three year fixed moving home deal at a 60% LTV will find that West Brom Building Society had the lowest rate this week. It offers 1.34% (3.4% APRC) fixed until 30 September 2023, which then reverts to 3.99% variable. This deal is only available to those located in England and Wales. It charges £999 in product fees and comes with the incentive of free valuation (up to a maximum of £740).

The lowest rate in the five year fixed moving home chart at a 60% LTV came from NatWest, which offers 1.41% (2.8% APRC) fixed until 30 September 2025 and then reverts to 3.59% variable. This deal charges £995 in product fees and comes with the incentive of £250 cashback.

Moving home mortgages

All the rates available can be found on our moving home chart.

The first-time buyer mortgage rates

Provider Rate Initial rate period Product fees
HSBC 2.44% fixed Two years £999
Buckinghamshire Building Society 3.59% fixed Three years £850
HSBC 2.74% fixed Five years £999

 

First-time buyers continue to face a difficult mortgage market this week, but some competitive deals are still available in the charts. The lowest two year fixed first-time buyer rate at a 90% LTV comes from HSBC, which offers 2.44% (3.5% APRC) fixed until 30 September 2022 and then reverts to 3.54% variable. This deal charges £999 in product fees and comes with the incentive of free valuation.

The only deal available in the three year fixed first-time buyer chart without significant location restrictions comes from Buckinghamshire Building Society, which offers a rate of 3.59% (4.6% APRC) fixed until 31 August 2023, after which it reverts to 4.74% variable. This deal is available at a 100% LTV, although borrowers should be aware that this is a family assist deal meaning that the borrower’s parent’s or grandparent’s property is used as security against the mortgage. It charges £850 in product fees and there are no incentives with this deal.

The lowest five year fixed first-time buyer rate on a deal that does not come with opening restrictions is from HSBC. The deal is available to those looking for a 90% LTV and offers a rate of 2.74% (3.3% APRC) fixed until 30 September 2025, after which it reverts to 3.54% variable. This deal charges £999 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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