The best residential mortgage rates this week 17.07.20

There was good news for those looking to get onto the property ladder this week as both Nationwide Building Society and Metro Bank announced they planned to start lending to first-time buyers again. First-time buyers who are struggling to raise a deposit to purchase a house should read our story on the help available to first-time buyers looking to get onto the housing ladder, which highlights the options available to those looking to buy their first home.

Across the charts, mortgage rates have remained highly competitive and below we have highlighted the lowest rates available this week. When choosing a deal, although rate is important, borrowers should also consider factors that will impact the deal overall such as fees, interest rate type and flexibility in the mortgage. Borrowers who need help in deciding which mortgage is right for them should consult a mortgage broker.

Homeowners looking to remortgage at a 60% loan-to-value (LTV) will find that Lloyds Bank offered the lowest two year fixed rate this week. Lloyds Bank offers 1.13% (3.3% APRC) fixed until 31 August 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.

The best three year fixed remortgage rate at a 60% LTV came from Barclays Bank, which offers 1.28% (3.1% APRC) fixed until 31 October 2023, reverting to 3.59% variable thereafter. This deal charges £999 in product fees. It includes the incentives of free valuation and no legal fees.

Those looking for a five year fixed remortgage deal at a 60% LTV will find that Lloyds Bank offers the lowest rate of 1.35% (2.8% APRC) fixed until 31 August 2025, which then reverts to 3.59% variable thereafter. It charges £999 in product fees and comes with the incentives of free valuation, no legal fees and £200 cashback for Club Lloyds account holders.

Barclays Mortgage had the lowest rates in the two, three and five year fixed moving home mortgage charts at a 60% LTV. In the two year chart, it offers a rate of 1.09% (3.2% APRC) fixed until 31 October 2022, which then reverts to 3.59% variable. In the three year chart, it offers 1.28% (3.1% APRC) fixed until 31 October 2023 and then reverts to 3.59% variable. In the five year chart, it offers a rate of 1.36% (2.8% APRC) fixed until 31 October 2025, reverting to 3.59% variable thereafter. All these deals charge £999 in product fees. They also come with the incentive of free valuation for properties valued to a maximum of £2m.

The lowest two year fixed rate at a 90% LTV in the first-time buyer chart came from HSBC this week. HSBC offers a rate of 2.24% (3.4% APRC) fixed until 30 September 2022, which then reverts to 3.54% variable. This deal charges £999 in product fees. It comes with the incentive of free valuations.

In the three year fixed rate chart, the lowest rate at a 95% LTV came from Scottish Building Society, which offers 3.19% (4.7% APRC) fixed for three years and reverts to 4.94% variable thereafter. This deal is only available to those located in Scotland, Northumberland and Cumbria. It charges £995 in product fees. For those located in England and Wales, Buckinghamshire Building Society offered the lowest three year rate at a 100% LTV. Buckinghamshire Building Society offers 3.59% (4.6% APRC) fixed until 31 August 2023, which then reverts to 4.74% variable. This deal charges £850 in product fees. It should be noted that this mortgage requires the assistance of a family member.

HSBC offered the lowest rate in the five year fixed rate first-time buyer chart at a 90% LTV. It offers 2.56% (3.3% APRC) fixed until 30 September 2025 and then reverts to 3.54% variable. This deal has a number of opening restrictions, including a minimum earned income of £75,000. It charges £1,499 in product fees and comes with the incentive of free valuation. First-time buyers who cannot meet these opening restrictions can get the second-lowest five year rate at a 90% LTV, also being offered by HSBC, which offers 2.59% (3.3% APRC) fixed until 30 September 2025 and then reverts to 3.54% variable. This deal charges £999 in product fees and comes with the incentive of free valuation.