The best residential mortgage rates this week 09.10.20 | moneyfacts.co.uk

Michelle Monck

Michelle Monck

Consumer Finance Expert
Published: 09/10/2020

There have been few changes to the best mortgages available this week. Barclays Bank has withdrawn some of its mortgages this week and, as a result, there have been a few changes to the best remortgage and moving home mortgage rates.


The charts below show the best mortgage rates for those wanting to remortgage, move home and for first-time buyers. We list the best mortgage deals available directly from the lender that are available across Great Britain. All the rates shown are for those mortgages available at 60% loan-to-value (LTV) unless otherwise stated.

The best remortgage rates

Provider

Rate

Initial rate period

Product fee

Lloyds Bank

1.17% fixed

Two years

£999

Coventry Building Society

1.79% fixed

Three years

£999

Lloyds Bank

1.39% fixed

Five years

£999

This week, the best remortgage rates chart has had one change as a result of Barclays withdrawing some of its mortgages, however Lloyds Bank has continued to hold its market-leading rates for another week.


The lowest rate for a two-year fixed rate remortgage is from Lloyds Bank at 1.17% (3.3% APRC) fixed until 30 November 2022. The rate increases to 3.59% variable after this. This mortgage has a fee of £999 and comes with free valuation and legal fees. In addition, £200 cashback is available for those with a Club Lloyds account.

Barclays Bank withdrew its top rate three-year fixed rate remortgage and, as a result, Coventry Building Society now offers the top rate of 1.79% (3.8% APRC) fixed until 31 December 2023. After this, the rate increases to 3.99% variable. The fee is £999 and free valuation is included up to a maximum of £670, as well as free legal fees. This mortgage also allows for a maximum LTV of 65%.


The lowest five-year fixed rate remortgage available is from Lloyds Bank at 1.39% (2.8% APRC) fixed until 30 November 2025, and after this the rate increases to 3.59% variable. There is a fee of £999 and the incentives of free valuation and free legal fees are included. As with the two-year deal, £200 cashback is available for those with a Club Lloyds account.


Meanwhile, the best 80% LTV two-year fixed rate remortgage is again from Lloyds Bank this week. It offers a rate of 1.50% fixed until 30 November 2022. After this, the rate increases to 3.59% variable. The fee is £999 and it includes free valuation and free legal fees. Club Lloyds account holders can also get £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

Halifax

1.28% fixed

Two years

£995

Coventry Building Society

1.79% fixed

Three years

£999

NatWest

1.55% fixed

Five years

£995

Barclays Bank

1.99% fixed

Ten years

£999

Halifax is now offering the best two-year fixed rate mortgage for home movers. It offers a rate of 1.28% (3.3% APRC) fixed until 30 November 2022, and after this it reverts to 3.59% variable. The fee is £995.
The Coventry Building Society now has the top rate for a three fixed-rate mortgage for home-movers as a result of Barclays withdrawing its product from the market. The rate is 1.79% (3.8% APRC) fixed until 31 December 2023. After this, the rate increases to 3.99% variable and the fee is £999. This mortgage also allows for a maximum LTV of 65%.
NatWest offers the lowest five-year fixed rate mortgage for moving home with a rate of 1.55% (2.9% APRC) fixed until 31 December 2025, after which the rate increases to 3.59% variable. There is a fee of £995 and this mortgage offers £250 cashback as an incentive.
The lowest rate 10-year fixed rate mortgage for home-movers is from Barclays Bank. It has a rate of 1.99% (2.6% APRC) fixed until 31 October 2030, after which the rate increases to 3.59% variable. The fee is £999 and free valuation is included. This mortgage may also be taken as a remortgage.

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

3.49% fixed at 90% LTV

Two years

£999

Al Rayan Bank (home purchase plans only)

4.49% fixed at 90%

Two years

£999

Nationwide Building Society

3.54% fixed at 90%

Five years

£999

Virgin Money

3.89% fixed at 90%

10 years

£995

The best rates for first-time buyers at 90% LTV have seen some changes this week. Nationwide Building Society increased the rate of its first-time buyer mortgages, but still offers the lowest rates available across Great Britain for a two and five-year fixed rate. While other banks and building societies are offering lower rates, these come with geographical or occupational restrictions.


Nationwide Building Society’s two-year fixed rate first-time buyer mortgage has a rate of 3.49% (3.7% APRC) fixed for two years, after which it increases to 3.59% variable. There is a fee of £999, free valuations and £500 cashback available. The building society also has the lowest rate that is widely available for a five-year fixed rate at 3.54% (3.7% APRC), which also then reverts to 3.59% variable. This mortgage has a £999 fee and comes with free valuation fees and £500 cashback.
Nationwide Building Society has specific rules and restrictions about the types of property they will accept and for gifted deposits from family members.
Al Rayan Bank also has a two-year fixed rate product available for first-time buyers. As a Sharia’a bank, this is not a standard mortgage but instead a home purchase plan. There is more information about these in our guide to house purchase plans. The rate is 4.49% (4.4% APRC) fixed until 31 December 2022, after this it increases to 4.09% variable. The fee is £999 and there is help towards legal fees up to £400.

Virgin Money continues to offer the lowest rate for a 10-year fixed rate mortgage for first-time buyers. It offers a rate of 3.89% (4.1% APRC) fixed until 1 January 2031, after which the rate reverts to 4.09% variable. The fee is £995 and free valuation is included.

Those not able to get a mortgage with the lenders above can also consider using a guarantor mortgage, using a Help to Buy to boost their deposit (as long as purchasing a new build) or speaking with a mortgage broker who can review the whole market.

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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