Derin Clark

Derin Clark

Online Reporter
Published: 16/08/2019

Data published this week in the Moneyfacts UK Mortgage Trends Treasury Report found that competition within the tracker rate mortgage sector is falling, as there are now only 242 tracker rate mortgages available in the market, which is less than 5% of all residential mortgages. As well as this, the report also revealed that consumers are overwhelmingly choosing fixed rate mortgages, with nearly 92% of all new advances approved during the first three months of 2019 for this type of mortgage.

The best moving home mortgage rates

Provider Rate Initial rate period Product fee
NatWest 1.24% variable Two years £995
NatWest 1.28% fixed Two years £995
HSBC 1.56% fixed Three years £1,499
HSBC 1.66% fixed Five years £1,499

Overall, the lowest rate on offer in the moving home mortgage chart came from NatWest, offering 1.24% (3.8% APRC) variable until 31 October 2021, after which it reverts to 4.24%. This deal is available on a maximum 60% loan-to-value (LTV) and requires a minimum loan of £25,000, to a maximum of £2m. It charges £995 in product fees and comes with the incentive of £250 cashback. As well as this, overpayments are allowed.

For homeowners wanting to lock into a fixed rate, the lowest rate again came from NatWest, which offered 1.28% (3.8% APRC) fixed until 31 October 2021 and then reverts to 4.24%. A maximum 60% LTV is needed for this mortgage, which requires a minimum loan of £25,000, to a maximum of £2m. This mortgage charges £995 in product fees and includes the incentive of £250 cashback. Overpayments are allowed.

HSBC topped the three-year and five-year fixed charts this week. Its chart-topping three-year fixed rate offers 1.56% (3.6% APRC) fixed until 31 October 2022 and then reverts to 4.19%, while the five-year fixed rate offers 1.66% (3.3% APRC) fixed until 31 October 2024 and then reverts to 4.19%. Both these deals are for a maximum 60% LTV and require a minimum loan of £10,000, to a maximum of £5m. As well as this, these deals require an earned income of a minimum of £75,000. They both charge £1,499 in product fees and include the incentives of free valuations. In addition to this, they both allow overpayments.

The best first-time buyer mortgage rates

Provider Rate Initial rate period Product fee
Newcastle Building Society 2.59% fixed Two years £498
Marsden Building Society 2.89% fixed Three years £0
Barclays Mortgage 2.75% fixed Five years £0

The chart-topping rate in the first-time buyer chart came from Newcastle Building Society, which offers 2.59% (5.1% APRC) fixed until 31 October 2021, after which it reverts to 4.49%. This mortgage is available to those with a maximum 95% LTV and requires a minimum loan of £30,000, while the maximum is dependent on LTV. It charges £498 in product fees and although it doesn’t offer any incentives, it does have the flexible feature of allowing overpayments.

Marsden Building Society offered the lowest rate in the three-year fixed chart this week, offering 2.89% (5.4% APRC) which is fixed until 30 September 2022 and then reverts to 6.20%. It is available to those with a maximum 95% LTV and requires a minimum £30,000 loan, to a maximum of £350,000. There are no product fees with this deal and it includes the incentives of free valuations for properties valued to a maximum £500,000. It also allows overpayments.

Barclays Mortgage offered the lowest rate in the five-year fixed chart, although first-time buyers should be aware that this mortgage deal requires a deposit from a guarantor, such as a parent, to use as security. This deal offers a rate of 2.75% (3.7% APRC) which is fixed until 31 October 2024 and then reverts to 4.24%. This deal is available to those with a maximum 95% LTV and requires a minimum loan of £5,000, to a maximum of £500,000. It doesn’t charge any product fees and includes the incentives of free valuations for properties valued to a maximum of £2m, as well as the flexibility of overpayments.   

The best remortgage rates

Provider Rate Initial rate period Product fee
Furness Building Society 1.29% discounted variable Two years £999
HSBC 1.31% fixed Two years £1,499
HSBC 1.56% fixed Three years £1,499
HSBC 1.66% fixed Five years £1,499

The lowest rate in the remortgage chart came from Furness Building Society this week, offering 1.29% (5.2% APRC) discounted variable for two years, which then reverts to 5.79%. This deal is available to those with a 60% LTV and requires a minimum loan of £30,000, while the maximum is dependent on LTV. It charges £999 in product fees and includes the incentives of free valuations to a maximum of £665, as well as free legal fees or £150 towards legal fees. In addition to this, it has the flexible feature of allowing overpayments.

HSBC topped the two-year, three-year and five-year fixed remortgage charts this week. The two-year deal offers 1.31% (3.8% APRC) fixed until 31 October 2021, the three-year deal offers 1.56% (3.6% APRC) fixed until 31 October 2022, and the five-year deal offers 1.66% (3.3% APRC) fixed until 31 October 2024; all these deals revert to 4.19% after their fixed term. These deals are available to those with a maximum 60% LTV and require a minimum loan of £10,000, to a maximum of £5m. As well as this, they are only available to those who earn a minimum income of £75,000. They all charge £1,499 in product fees and include the incentives of free valuations and legal fees. In addition to this, they all allow 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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