The Best Mortgage Rates This Week 16.10.20 | moneyfacts.co.uk

Derin Clark

Derin Clark

Online Reporter
Published: 16/10/2020

Although the housing market remains strong at the moment, mortgage lenders are tightening their lending criteria, making it harder for some buyers to secure a mortgage. First-time buyers are finding it particularly difficult in the current climate to secure mortgages and may want to consider a guarantor mortgage as a way of getting onto the property ladder. Those struggling to get a mortgage should consider speaking to a mortgage broker who will be able to provide the best deals available for their circumstances.

Below we have highlighted the lowest rates available in the remortgage and moving home charts, as well as some of the best deals in the guarantor mortgage chart. Borrowers should be aware the lowest rates may not offer the best deal overall and should also consider factors such as product fees and incentives when choosing a mortgage.

The best remortgage rates

Provider Rate Initial rate period Product fee
Lloyds Bank 1.17% Two years £999
Coventry Building Society 1.59% Three years £999
Lloyds Bank 1.39% Five years £999

 

Homeowners looking to remortgage will find that Lloyds Bank had the lowest rate in the remortgage chart this week. It offers 1.17% (3.3% APRC) fixed until 30 November 2022, after which it reverts to 3.59% variable. This deal is available to those looking for a 60% loan-to-value (LTV) and charges £999 in product fees. It has the incentive of free valuation along with £200 cashback if a current account is held.

The lowest rate in the three year fixed remortgage chart came from Coventry Building Society, which offers 1.59% (3.8% APRC) fixed until 31 December 2023 and then reverts to 3.99% variable for term. This deal is available to those looking to remortgage at a 65% LTV. It charges £999 in product fees and comes with the incentives of free valuation (to a maximum of £670) and no legal fees.

Lloyds Bank had the lowest five year fixed remortgage rate this week, offering 1.39% (2.8% APRC) fixed until 30 November 2025, which then reverts to 3.59%. This deal is available to those looking for a 60% LTV. It charges £999 in product fees and comes with the incentives of free valuation, no legal fees, as well as £200 cashback if a current account is held.

Compare 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% Two years £995
Coventry Building Society 1.59% Three years £999
Platform 1.45% Five years £1,499

 

The lowest rate for homeowners looking to move home came from Halifax this week. Halifax offers 1.28% (3.3% APRC) fixed until 30 November 2022, after which it reverts to 3.59% variable. This deal is available to those looking for a 60% LTV and charges £995 in product fees. There are no incentives with this deal.

Coventry Building Society had the lowest rate in the three year fixed moving home chart this week. It offers 1.59% (3.7% APRC) fixed until 31 December 2023, which then reverts to 3.99% variable. This deal is available to those looking for a 65% LTV. It charges £999 in product fees and comes with the incentive of free valuation (up to a maximum of £670).

In the five year fixed moving home chart the lowest rate came from Platform, which offers 1.45% (3.3% APRC) fixed until 31 December 2025 and then reverts to 4.34% variable. This deal is available to those looking for a 60% LTV and who have an earned minimum income of £15,00. It charges £1,499 in product fees and comes with the incentives of free valuation and £250 cashback.

Compare 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
Buckinghamshire Building Society 2.74% discounted variable Two years £0
Mansfield Building Society 3.05% discounted variable Three years £199
Barclays Mortgage 3.25% fixed Five years £0
Tipton & Coseley Building Society 3.39% discounted variable   £0

 

Guarantor mortgages are mortgages that require first-time buyers to have a guarantor, usually a close family member, who will put money or assets as a guarantee against the mortgage. Here we’ve looked at the lowest rates in the guarantor mortgage charts.

Buckinghamshire Building Society had the lowest two year discounted variable guarantor mortgage this week. Its two year deal offers a rate of 2.74% (4.5% APRC) discounted variable for two years, after which it reverts to 4.75%. This deal is available at a 100% LTV, but is supported by a charge on a parents or grandparents property. To qualify for this deal, the buyer needs to be looking to purchase a property in the Buckinghamshire area or have parents or grandparents proving collateral who are based within Buckinghamshire or who are existing Buckinghamshire Building Society members for 12 months prior to the mortgage application. There are no product fees or incentives with this deal.

Mansfield Building Society offers a rate of 3.05% (4.9% APRC) discounted variable for three years, after which it reverts to 5.35%. This deal is available at a 100% LTV but security collateral equal to 20% of the value of the property being purchased must be provided by family members as either cash savings or equity in the family members home, which will be held for seven years. The savings option is not available for those based in Scotland. This deal charges £199 in product fees and comes with the incentive of £400 cashback.

Barclays Mortgage offers a rate of 3.25% (2.9% APRC) fixed until 31 January 2026, which then reverts to 2.59% variable. This deal is available at a 100% LTV but Barclays’ Helpful Start Account must be taken out and receive a deposit that is equivalent to 10% of the property purchase price. The Helpful Start Account must remain open for a minimum period of five years from completion or until full redemption, whichever is sooner. There are no product fees with this deal and it comes with the incentive of free valuation for properties valued to a maximum of £2 million.

Tipton & Coseley Building Society offers a rate of 3.39% discounted variable (collared at 2.99%) on a deal available to those looking for a 100% LTV. A collateral charge is secured against a family member’s property, which is released once the loan falls below 75% LTV. There are no product fees or incentives with this deal.

Compare guarantor mortgages

All the rates available can be found on our guarantor mortgage 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.

Cookies

Moneyfacts.co.uk will, like most other websites, place cookies onto your device. This includes tracking cookies.

I accept. Read our Cookie Policy