The Best Mortgage Rates This Week 22.05.20 | moneyfacts.co.uk

Derin Clark

Derin Clark

Online Reporter
Published: 22/05/2020

Since the relaxing of social distancing rules in England last week, which now means physical valuations can once again take place and consumers can move home, a number of providers have started launching higher loan-to-value (LTV) deals.

The mortgage charts have also continued to remain highly competitive this week, with low rates available across the charts. While we’ve highlighted the lowest rates currently available in the charts, borrowers should keep in mind that the lowest rate may not be the right deal for them. Instead, it is important to consider a range of factors such as product fees and incentives, along with the rate when choosing the best mortgage deal.

The best mortgage rate for home-movers

Provider Rate Initial rate period Product fee
Cumberland Building Society 1.13% discounted variable Two years £1,999
HSBC 1.14% fixed Two years £999
HSBC 1.29% fixed Three years £999
HSBC 1.36% fixed Five years £1,499

This week, the lowest mortgage rate available to those located in all areas of Great Britain came from Cumberland Building Society, which offers 1.13% (3.7% APRC) discounted variable for two years and then reverts to 4.09% variable. This deal is available to those looking for a 60% LTV. It charges £1,999 in product fees. There are no incentives with this mortgage.

Once again HSBC offered the lowest rate in the two, three and five year fixed rate moving home charts. In the two year fixed rate chart, HSBC offers 1.14% (3.2% APRC) fixed until 30 September 2022, which then reverts to 3.54% variable. This deal is available to those looking for a 60% LTV and a minimum joint income of £15,000 is needed for joint applications, but there is no minimum income requirement for single applicants. It charges £999 in product fees and comes with the incentive of free valuation.

In the three year fixed rate moving home mortgage chart, HSBC offers a rate of 1.29% (3.0% APRC) fixed until 30 September 2023, reverting to 3.54% variable thereafter. This mortgage deal has the same terms and conditions as the two year fixed deal.

In the five year fixed rate moving home chart, HSBC offers a rate of 1.36% (2.7% APRC) fixed until 30 September 2025, which then reverts to 3.54% variable. It should be noted that this deal is only available upon opening a Premier account and Premier customers must have savings or investments of at least £50,000 with HSBC in the UK or have an annual income of at least £75,000. It is available to those looking for a 60% LTV and an earned income of £75,000 is needed. It charges £1,499 in product fees and comes with the incentive of free valuation.

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
Hanley Economic Building Society 2.55% discounted variable Five years £0
Nationwide Building Society 3.09% fixed Two years £999
Nationwide Building Society 3.39% fixed Three years £999
Barclays Mortgage 2.75% fixed Five years £0

The lowest first-time buyer mortgage rate this week came from Hanley Economic Building Society, which offers 2.55% (4.0% APRC) discounted variable for five years, and then reverts to 4.79% variable thereafter. This deal is available to those looking for a 95% LTV. It does not charge any product fees and comes with the incentive of free valuation (for properties valued to a maximum of £250,000) or help towards valuation fees (to a maximum of £310).

Nationwide Building Society again had the lowest rate in the two and three year fixed rate charts this week. In the two year fixed rate chart, it offers 3.09% (3.6% APRC) fixed for two years, reverting to 3.59% variable thereafter. This deal is available to those looking for a 95% LTV and it charges £999 in product fees. It comes with the incentive of free valuation and £500 cashback.

In the three year fixed rate first-time buyer chart, Nationwide Building Society offers a rate of 3.39% (3.7% APRC) fixed for three years and then reverts to 3.59% variable. This deal has the same terms and conditions as the two year fixed deal.

Once again, Barclays Mortgage had the lowest rate in the five year fixed first-time buyer chart. It offers a rate of 2.75% (2.7% APRC) fixed until 31 July 2025 and it then reverts to 2.59% variable. Borrowers should be aware that to apply for this deal, A Helpful Start Account must be opened and it includes additional terms and conditions. It is available to those looking for a 95% LTV. It does not charge any product fees and comes with the incentive of free valuation up to a maximum of £2m.

First-time buyer mortgages

All the rates available can be found on our first-time buyer chart.

The best remortgage rates

Provider Rate Initial rate period Product fee
HSBC 1.14% fixed Two years £999
HSBC 1.29% fixed Three years £999
HSBC 1.36% fixed Five years £1,499

HSBC offered the lowest rate in the two, three and five year fixed remortgage charts this week. In the two year fixed remortgage chart, it offers a rate of 1.14% (3.2% APRC) fixed until 30 September 2022, which then reverts to 3.54% variable. This deal is available for those looking for a 60% LTV and while a minimum joint income of £15,000 is needed for joint applications, there is no minimum income requirement for single applicants. It charges £999 in product fees and comes with the incentives of free valuation and no legal fees.

In the three year fixed remortgage chart, HSBC offers a rate of 1.29% (3.0% APRC) fixed until 30 September 2023, reverting to 3.54% variable thereafter. This deal has the same terms and conditions as the two year fixed remortgage deal.

In the five year fixed remortgage chart, HSBC offers a rate of 1.36% (2.8% APRC) fixed until 30 September 2025, after which it reverts to 3.54% variable. Homeowners should be aware that this deal is only available upon opening a Premier account and Premier customers must have savings or investments of at least £50,000 with HSBC in the UK or have an annual income of at least £75,000. It is available to those looking for a 60% LTV and who earn a minimum income of £75,000. It charges £1,499 in product fees and comes with the incentive of free valuation and no legal fees.

Remortgages

All the rates available can be found on our remortgage chart.

Borrowers who are interested in any of these deals can speak to a mortgage broker. Speak To A Broker today for more information.

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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