The best residential mortgage rates this week 18.09.20 | moneyfacts.co.uk

Michelle Monck

Michelle Monck

Consumer Finance Expert
Published: 18/09/2020


Lenders continued to increase rates and withdraw mortgage products this week. Newcastle Building Society, West Brom Building Society, the Post Office, Coventry Building Society and Marsden Building Society all withdrew mortgage products this week. While Leek Building Society, Santander, Coventry Building Society, Principality Building Society, HSBC, Skipton Building Society and Nottinghamshire Building Society increased rates on selected mortgages. Only the Halifax, Stafford Railway Building Society and Leek Building Society introduced new mortgage products this week.


First-time buyers at 90% LTV and above now have very limited choices for a mortgage. Nationally Nationwide Building Society and Virgin Money still have 90% LTV mortgages available but there are conditions to these. First time buyers that cannot meet these will find they need a family member willing to offer their assets as security or face the post code lottery of local building societies that have restricted first-time lending to their localities only.

We have set out below 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% LTV unless otherwise stated.

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Contact our preferred mortgage broker to find out more about the best deals available and for help in finding a mortgage lender.

The best remortgage rates

Provider

Rate

Initial rate period

Product fee

Lloyds Bank

1.17% fixed

Two years

£999

Barclays

1.72% fixed

Three years

£999

Lloyds Bank

1.39% fixed

Five years

£999

Lloyds Bank retains the best remortgage rates at two and five-year fixed terms. Their two-year fixed rate mortgage has a rate of 1.17% (3.3% APRC) fixed until 30 November 2022 after which the rate increases to 3.59%. The fee is £999 and this mortgage has free valuation and legal fees.
West Brom Building Society has increased their three-year fixed rate mortgage, leaving Barclays to take the top spot. Barclays offer a rate of 1.72% (3.2% APRC) fixed until 30 November 2023 and after this the rate increases to 3.59%. The fee is £999 and there are free legal and valuation fees. This mortgage is available to those with a 75% loan-to-value (LTV) and either buying a home or needing to remortgage.
Lloyds Bank has the lowest five-year fixed rate remortgage at 1.39% (2.8% APRC) fixed until 30 November 2025, after this the rate increases to 3.59%. The fee for this mortgage is £999. It is available to those moving home as well as those wanting to remortgage. This mortgage offers free valuations and those remortgaging are also eligible for free legal fees. There is £200 cashback available to those with a Club Lloyds account.

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

West Brom Building Society

1.24% fixed

Two years

£999

Barclays Bank

1.72% fixed

Three years

£999

Barclays Bank

1.42% fixed

Five years

£999

While West Brom Building Society withdrew some of its mortgages this week, it has kept its top rate two-year fixed rate mortgage for those moving home. West Brom Building Society offers a rate of 1.24% (3.6% APRC) fixed until 30 November 2022 after this the rate increases to 3.99%. The product fees are £999 and free valuation fees up to £740 are available.
The best rate for a three-year fixed rate mortgage for home-movers is retained again by Barclays Bank this week at 1.72% (3.2 APRC) fixed until 31 October 2023. The rate increases to 3.59% after this end date. This mortgage deal is available to those at 75% LTV and the fee is £999. Those buying a new home and those needing to remortgage are eligible for this mortgage. Free valuation fees are available to home buyers and those getting a remortgage can benefit from free valuation and legal fees.
The best rate for a five-year fixed rate mortgage for moving home has changed this week with Barclays now leading this sector. It offers a rate of 1.42% (2.8% APRC) fixed until 31 October 2025 and after this the rate increases to 3.59%. This mortgage is available to those moving home and those needing to remortgage. The fee is £999 and there are free legal fees for those purchasing a home and £250 cashback and free valuations for those remortgaging.

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

3.24% fixed at 90% LTV

Two and five years

£999

Virgin Money

3.29% fixed at 90%

Seven years

£995

First-time buyers are left with very little choice at 90% and 95% LTV with most lenders now restricting the availability of their mortgages either by postcode or restrictions on the types of properties they will lend against. Some lenders are still offering guarantor mortgages, this is where usually a family member uses their property or savings as additional security to bolster a first-time buyer’s deposit. The risk is that if the first-time buyer cannot pay their mortgage then the family member may lose their savings and property. Those not wanting to use this approach will need to look at ways to increase their deposit as availability of mortgages at 80% LTV and 85% LTV is greater.
Our table this week has sought to focus on those first-time buyer mortgages available with a 10% deposit that do not include postcode restrictions or require a guarantor. However, the mortgages that are left will still have criteria requirements or tie borrowers into a long-term fixed deal. Speaking with a mortgage broker is very important to make sure if these or an alternative such as using Help to Buy might be more suitable.
Nationwide Building Society is offering mortgages at 90% for first-time buyers, but there are some restrictions on the types of property they will cover and criteria about gifted deposits from family members. Its rate of 3.24% (3.6% APRC) is fixed for two or five years after which the rate increases to 3.59%. There is a fee of £999. This mortgage comes with free valuation and £500 cashback.
Virgin Money offers a seven-year fixed rate mortgage at 3.29% (3.8% APRC) fixed until 1 January 2028, after this the rate reverts to 4.09%. The fee is £995 and there are free valuation fees.

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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