The best residential mortgage rates this week 21.08.20

Over the last few months, mortgage lenders have become more cautious about lending, which has resulted in many pulling their high loan-to-value (LTV) and first-time buyer deals from the market. Now, there has been more movement on lower LTV deals, which could result in rates on all LTVs increasing over the next few months. Saying this, the mortgage market remains highly volatile at the moment, but mortgage borrowers may want to think about getting a new deal while rates remain competitively low.

Although getting a mortgage deal with a low rate is important, when looking at deals, borrowers should consider a range of factors. For example, factoring the product fee, flexible features and incentives, along with the rate, will help to determine the true cost of the deal. Borrowers wanting further help and advice with choosing a deal should consider speaking to a mortgage broker.

This week, HSBC continued to offer the lowest two and five year fixed rate remortgage deals at 60% loan-to-value (LTV). In the two year fixed remortgage chart, HSBC offers 1.14% (3.2% APRC) fixed until 31 December 2022, which then reverts to 3.54% variable. In the five year fixed remortgage chart, HSBC offers a rate of 1.34% (2.7% APRC) fixed until 31 December 2025, reverting to 3.54% variable thereafter. Both deals charge £999 in product fees and come with the incentives of free valuation and no legal fees.

In the three year fixed rate remortgage chart, West Brom Building Society continued to offer the lowest rate at a 60% LTV. This deal offers 1.64% (3.4% APRC) fixed until 30 November 2023, after which it reverts to 3.99% variable. There are no product fees with this deal, and it comes with the incentives of free valuation (up to a maximum of £740) and no legal fees.

As with the remortgage chart, this week HSBC had the lowest rates in both the two and five year fixed moving home charts at a 60% LTV. In the two year chart, it offers 1.14% (3.2% APRC) fixed until 31 December 2022, which then reverts to 3.54% variable. In the five year moving home chart, it offers a rate of 1.34% (2.7% APRC) fixed until 31 December 2025, reverting to 3.54% variable thereafter. Both deals charge £999 in product fees and come with the incentive of free valuation.

The lowest rate in the three year fixed rate moving home chart at a 65% LTV came from Virgin Money, offering 1.69% (3.6% APRC) fixed until 1 November 2023, which then reverts to 4.34% variable for term. This deal charges £995 in product fees and comes with the incentive of free valuation.

Although first-time buyers will find a more challenging mortgage market at the moment, all of last week’s lowest rates are still available. HSBC has the lowest rate in the two and five year fixed first-time buyer charts. In the two year chart, it offers 2.44% (3.4% APRC) fixed until 31 December 2022, which then reverts to 3.54% variable. In the five year chart, it offers 2.74% (3.3% APRC) fixed until 31 December 2025, reverting to 3.54% variable thereafter. Both deals are available at a 90% LTV and charge £999 in product fees. They come with the incentive of free valuation.

In the three year fixed first-time buyer chart, the only deal available that does not have significant location restrictions is from Buckinghamshire Building Society, which offers a rate of 3.59% (4.6% APRC) fixed until 31 August 2023, after which it reverts to 4.74% variable. It should be noted that this deal is a family assist deal, which means that the borrower’s parents’ or grandparents’ property is used as security against the mortgage. It is available at a 100% LTV and charges £850 in product fees. There are no incentives with this deal.