The best residential mortgage rates this week 19.6.20 | moneyfacts.co.uk

Michelle Monck

Michelle Monck

Consumer Finance Expert
Published: 26/06/2020

The best mortgage rates this week are dominated by the high street banks across remortgages, moving home and first-time buyer mortgages. Those looking for high loan-to-value (LTV) mortgages continue to struggle to secure a mortgage, as demand for these limited deals continues to outstrip supply. There was some good news though as Yorkshire Building Society launched a new 90% first-time buyer mortgage.
In the round-up of the best mortgage rates available this week, we feature the best rates available for home-movers, those looking for a remortgage and first-time buyers. Borrowers need to consider more than the initial rate when choosing a mortgage – factors such as fees, interest rate type and flexibility in a mortgage should also form part of the decision-making process. Borrowers who need help in deciding which mortgage is right for them should consult a mortgage broker.

The best remortgage rates

The best remortgage rates at 60% LTV

Provider

Rate

Initial rate period 

Product fee

Lloyds Bank

1.13% fixed

Two years

£999

Barclays

HSBC

1.29% fixed

1.29% fixed

Three years

Three years

£999

£999

Lloyds Bank

1.35% fixed

Five years

£999

The best remortgage rates at 60% LTV remain unchanged from last week, with Barclays joining the table for its three-year fixed rate at 1.29% (3.1% APRC).

The best remortgage rates at 80% LTV

Provider

Rate

Initial rate period 

Product fee

Barclays

Lloyds Bank

Leek United BS

1.43% fixed

1.43% fixed

1.43% fixed

Two years

Two years

Two years

£999

£999

£1,495

HSBC

1.64% fixed

 

Three years

 

£999

 

Yorkshire Building Society

1.63% fixed

Five years

£1,495

There are three mortgage lenders all offering 1.43% fixed for a remortgage at 80% LTV for two years. Barclays and Lloyds Bank have the lowest product fee of £999, while Leek Building Society is charging £1,495. Here’s a quick summary:

  • Barclays has an initial rate of 1.43% fixed (3.3% APRC) until 31 July 2022, after which it increases to 3.59% variable. This mortgage offers either free legal fees or £250 cashback.
  • Lloyds Bank has an initial rate of 1.43% fixed (3.3% APRC) until 31 August 2022, after which it reverts to 3.59% variable.
  • Leek Building Society has the same initial rate of 1.43% fixed (4.6% APRC) until 30 September 2022, and after this the rate increases to 5.19% variable. There is also £400 cashback on completion.

The best three-year fixed rate remortgage at 80% LTV is from HSBC at 1.64% fixed (3.1% APRC) until 30 September 2023. The product fee is £999.
Those looking to remortgage at 80% LTV for five-years fixed will find the best rate available from Yorkshire Building Society at 1.63% fixed (3.5% APRC) until 31 August 2025, and after this it reverts to 4.49% variable. The mortgage is available up to 85% LTV, but it has a significant fee of £1,495. This means those that need to add the fee to their mortgage borrowing will see a total higher cost of interest compared to some five-year fixes at higher rates. For example, the lowest interest cost over five years for those adding their fee to their mortgage is from Lloyds Bank or Leeds Building Society. Both offer rates of 1.70% with a fee of £999.

The best mortgage rates for home-movers

Provider

Rate 

Initial rate period 

Product fees

Cumberland Building Society

1.13% discounted variable

Two years

£1,999

Barclays
 HSBC

1.14% fixed
 1.14% fixed

 

Two years
 Two years

 

£999
 £999

Barclays

HSBC

1.29% fixed

1.29% fixed

Three years

Three years

£999

£999

HSBC

1.36% fixed

Five years

£999


There was very little change in the best rates for moving home mortgages at 60% LTV. Skipton Building Society left the chart and was replaced by HSBC for the best five-year fixed rate mortgage rate. This mortgage has an initial rate of 1.36% fixed until 30 September 2025 (2.8% APRC) and reverts to 3.54% variable. It does come with a sizeable product fee of £1,499 and those choosing to add this to their mortgage will find that over the total five years, it will cost more overall than the next best rate from Barclays. In addition, borrowers will need to earn at least £75,000 to qualify for the HSBC mortgage. Barclays offers a five-year fix at 1.39% until 31 July 2025, reverting to 3.59% variable and with a lower fee of £999.
Cumberland Building Society tops the charts for the best discounted variable rate at 1.13% (3.7% APRC). This tracks at 2.96% below their standard variable rate of 4.09% (also the rate the mortgage reverts to after two years.) This mortgage comes with another large fee of £1,999 – again borrowers that need to add the fee to their mortgage will in fact find the cheapest mortgage of this type is at a slightly higher rate, but also from the Cumberland Building Society. Its 1.21% discounted variable mortgage comes with a much lower fee of £999 and those borrowing £200,000 inclusive of the fees would save £823.84 at the rate of 1.21%.
Barclays and HSBC have the best rates for two-year fixed and three-year fixed moving home mortgages.

Not sure how much you can borrow?

Borrowers can use a mortgage affordability calculator to get an  indication of how much the might be able to borrow on a mortgage.

The best first-time buyer mortgage rates

The best 90% first-time buyer mortgages

Provider

Rate

Initial rate period 

Product fee

HSBC

1.89% fixed

Two years

£999

HSBC

2.14% fixed

Three years

£999

HSBC

2.26% fixed

Five years

£1,499

The top first-time buyer mortgages rates at 90% LTV are all from HSBC, the same as last week. However, the best rate for a five-year fixed rate first-time buyer mortgage is now the bank’s 2.26% initial rate (3.1% APRC) with a hefty fee of £1,499. Those buyers that need to add the fees to their mortgage will find HSBC’s 2.29% five-year fix with a £999 fee to offer a lower cost of interest over the initial term. Both mortgages initial terms run until 30 September 2025. Those who earn less than £75,000 per year are not eligible for the better rate of 2.26% fixed.

The best 80% LTV first-time buyer mortgages

Those first-time buyers that can save a bit more for their deposit and reach a lower LTV of 80% can find significantly better rates compared to higher LTVs.

Provider

Rate

Initial rate period 

Product fee

NatWest

1.41% fixed

Two years

£995

HSBC

1.64% fixed

Three years

£999

Leeds BS

Leek Building Society

1.70% fixed

1.70% fixed

Five years

Five years

£999

£1,495

NatWest offers the most competitive two-year fixed rate mortgage for first-time buyers with 80% LTV. This mortgage has an initial rate of 1.41% (3.3% APRC) until 30 September 2022 reverting to 3.59% variable thereafter. The product fee is £995 and first-time buyers can also benefit from £250 cashback when taking out this mortgage.
First-time buyers looking for a slightly longer three-year fixed rate term at 80% LTV will find the best rate from HSBC at 1.64% (3.1% APRC) reverting to 3.54% variable after the term ends on 30 September 2023.
The best five-year fixed rate mortgage for first-time buyers at 80% LTV is tied between Leek Building Society and Leeds Building Society, both offering rates of 1.70% fixed (3.9% APRC). The key difference though is in the product fee: £999 from Leeds Building Society and £1,495 from Leek Building Society. Leek Building Society is offering £400 cashback on completion.

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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