The best residential mortgage rates this week 14.08.20

Mortgage borrowers will be pleased to see that mortgage rates in the remortgage and moving home charts remained competitively low this week. Saying this, there is some indication that rates on lower loan-to-value (LTV) deals may start to rise, so borrowers should act quickly to secure the best deal possible.

When considering which mortgage deal is best, borrowers should take into consideration a number of factors and not just the rate, as this will reflect the true cost of the deal. For example, factors like product fee, incentives and flexible features should be included in the decision-making process.

The lowest two year fixed remortgage rate at a 60% LTV came from HSBC this week. HSBC offers 1.14% (3.2% APRC) fixed until 31 December 2022, after which it reverts to 3.54% variable. This deal charges £999 in product fees and comes with the incentive of free valuation and no legal fees. HSBC also offers the lowest rate in the five year remortgage chart this week. On a deal without restrictive opening conditions, it offers 1.34% (2.7% APRC) fixed until 31 December 2025, after which it reverts to 3.54% variable. This deal is available at a 60% LTV has the same terms and conditions as the two-year deal.

In the three year remortgage chart, the lowest fixed rate at a 60% LTV came from West Brom Building Society. This deal offers 1.64% (3.4% APRC) fixed until 30 November 2023, after which it reverts to 3.99% variable. It does not charge any product fees and comes with the incentives of free valuation (up to a maximum of £740) and no legal fees.

The lowest two year fixed rate at a 60% LTV in the moving home chart came from HSBC, which offers 1.14% (3.2% APRC) fixed until 31 December 2022 and then reverts to 3.54% variable. It charges £999 in product fees and comes with the incentive of a free valuation.

HSBC also offers the lowest rate in the five year fixed moving home chart of 1.31% (2.7% APRC) fixed until 31 December 2025 and then reverts to 3.54% variable, but this deal has restrictive opening conditions including a minimum income of £75,000 per year. Instead, borrowers moving home can get the next-lowest five year fixed moving home rate at a 60% LTV from HSBC. This deal offers 1.34% (2.7% APRC) fixed until 31 December 2025, after which it reverts to 3.54% variable. This deal has the same terms and conditions as the two-year fixed deal.

The lowest rate in the three year fixed moving home chart came from Virgin Money this week, which offers 1.69% (3.6% APRC) fixed until 1 November 2023, which then reverts to 4.34% variable. This deal is available at a 65% LTV and charges £995 in product fees. It comes with the incentive of free valuation.

The lowest two and five year fixed rate first-time buyer deals both came from HSBC this week. In the two year first-time buyer chart, HSBC offers 2.44% (3.4% APRC) fixed until 31 December 2022, which then reverts to 3.54% variable. This deal is available at a 90% LTV. It charges £999 in product fees and comes with the incentive of a free valuation. In the five year fixed first-time buyer chart, HSBC has the lowest rate on a deal without restrictive opening conditions of 2.74% (3.3% APRC) fixed until 31 December 2025 and then reverts to 3.54%. This deal has the same terms and conditions as the two-year fixed first-time buyer deal.

In the three-year fixed rate chart, the lowest rate on a deal without location restrictions comes from Buckinghamshire Building Society, which offers 3.59% (4.6% APRC) fixed until 31 August 2023 and then reverts to 4.74% variable. Borrowers should be aware that this is a family assist deal, which means that the borrower’s parent’s or grandparent’s property is used as security against the mortgage. It is available at a 100% LTV and charges £850 in product fees. There are no incentives with this deal.