Last updated: 27 March 2024 at 12:30
Leading five-year rates for remortgages and homemovers drop this week.
Many of the leading mortgage rates remained unchanged this week, although the top rates on five-year deals for remortgage borrowers and homemovers did see a reduction after a few providers made some cuts.
However, the leading rates on mortgages for first-time buyers with a 5% deposit rose slightly this week. This comes as mortgage costs for first-time buyers are so high that, in most regions of the UK, it’s cheaper to rent than to buy an equivalent home, according to the latest data from Halifax.
Some providers are offering specialist products to help first-time buyers get on the property ladder, including Yorkshire Building Society which recently launched a new deal that only requires a £5,000 deposit on properties worth up to £500,000.
But, while this could be an attractive deal for some first-time buyers, it’s important to consider that a mortgage with a high loan-to-value (LTV) comes with the risk of falling into negative equity. It’s worth getting advice to help you find the right mortgage for your situation.
Below, we identify some of the lowest mortgage rates available for different types of buyers. But, as the lowest rate doesn’t necessarily make a mortgage product the best or most cost-effective for you, we’ve also identified some alternatives, including providers that appear on our Moneyfacts Best Buy charts.
For a wider overview of the mortgage market, take a look at our charts.
Although we’ve highlighted the lowest rates across our mortgage charts, borrowers should always keep in mind that the lowest rate may not be the best, or most cost effective, deal for them. Instead, it is important to consider factors such as product fees and incentives when comparing mortgage deals, as these can have a significant impact on the cost of the mortgage. Consumers unsure of which deal is right for them should consider speaking to a mortgage broker, who will be able to provide advice on the best deal for their circumstances.
Rate: 4.57% fixed for 2 years before reverting to 8.74%
Initial period: 2 years
Product fee: £999
Maximum loan-to-value: 60%
APRC: 8.2%
Representative example: £178,000 mortgage over 25 years initially at 4.57% fixed for 24 months reverting to 8.74% variable for term. 24 monthly payments of £996.47 and 276 monthly payments of £1431.39. Total amount payable £420,357.92 includes loan amount, interest of £240,979, valuation fees of £0 and product fees of £999. The overall cost for comparison is 8.2% APRC representative.
Rate: 4.49% fixed for 3 years before reverting to 8.74%
Initial period: 3 years
Product fee: £999
Maximum loan-to-value: 60%
APRC: 7.8%
Representative example: £178,000 mortgage over 25 years initially at 4.49% fixed for 36 months reverting to 8.74% variable for term. 36 monthly payments of £988.37 and 264 monthly payments of £1414.36. Total amount payable £410,451.36 includes loan amount, interest of £230,972, valuation fees of £0 and product fees of £999. The overall cost for comparison is 7.8% APRC representative.
Rate: 4.18% fixed until 31 July 2029 before reverting to 8.24%
Initial period: 5 years
Product fee: £1,495
Maximum loan-to-value: 60%
APRC: 6.7%
Representative example: £178,000 mortgage over 25 years initially at 4.18% fixed for 64 months reverting to 8.24% variable for term. 64 monthly payments of £957.33 and 236 monthly payments of £1318.84. Total amount payable £374,390.36 includes loan amount, interest of £194,515, valuation fees of £0 and product fees of £1495. The overall cost for comparison is 6.7% APRC representative.
MPowered Mortgages offers the lowest two- and three-year fixes for remortgage borrowers for another week. Its two-year fix charges 4.57% while its three-year fix charges a slightly lower rate of 4.49%.
Both deals have a maximum loan-to-value (LTV) of 60% and charge a £999 arrangement fee. Available via intermediaries to borrowers in England and Wales, these deals offer a free valuation and free legal fees as customer incentives.
If you want a two-year fix that can finance a larger proportion of your property, Darlington BS offers a Moneyfacts Best Buy deal at 4.99% that can finance up to 80% of your property. It only charges an arrangement fee of £499 and offers a free valuation as an incentive.
Alternatively, Vernon BS offers a three-year fix that can also finance up to 80% LTV and is a Moneyfacts Best Buy deal. It charges a rate of 4.59% and a £499 arrangement fee, but it doesn’t offer any extra incentives. This deal is available to borrowers in England and Wales.
NatWest continues to offer the lowest five-year fix for remortgage borrowers and, after the bank recently made some rate cuts, this deal now charges a rate of 4.18%. However, borrowers need to consider that it charges a relatively hefty booking fee of £1,495. With a maximum LTV of 60%, this deal offers a free valuation and free legal fees as incentives.
For a five-year fix without any product fees, borrowers could consider the deal from first direct at 4.48%. This can finance up to 60% of your property and offers a free valuation and free legal fees as extra perks.
Rate: 4.52% fixed for 2 years before reverting to 8.74%
Initial period: 2 years
Product fee: £999
Maximum loan-to-value: 60%
APRC: 8.2%
Representative example: £218,000 mortgage over 25 years initially at 4.52% fixed for 24 months reverting to 8.74% variable for term. 24 monthly payments of £1214.19 and 276 monthly payments of £1752.48. Total amount payable £513,874.04 includes loan amount, interest of £294,825, valuation fees of £0 and product fees of £999. The overall cost for comparison is 8.2% APRC representative.
Rate: 4.42% fixed for 3 years before reverting to 8.74%
Initial period: 3 years
Product fee: £1,999
Maximum loan-to-value: 60%
APRC: 7.8%
Representative example: £218,000 mortgage over 25 years initially at 4.42% fixed for 36 months reverting to 8.74% variable for term. 36 monthly payments of £1201.84 and 264 monthly payments of £1730.99. Total amount payable £502,396.60 includes loan amount, interest of £282,248, valuation fees of £0 and product fees of £1999. The overall cost for comparison is 7.8% APRC representative.
Rate: 4.17% fixed until 30 June 2029 before reverting to 8.74%
Initial period: 5 years
Product fee: £899
Maximum loan-to-value: 60%
APRC: 6.9%
Representative example: £218,000 mortgage over 25 years initially at 4.17% fixed for 63 months reverting to 8.74% variable for term. 63 monthly payments of £1171.25 and 237 monthly payments of £1676.14. Total amount payable £472,062.93 includes loan amount, interest of £253,034, valuation fees of £0 and product fees of £899. The overall cost for comparison is 6.9% APRC representative.
Continuing to offer the lowest rates on two- and three-year mortgage deals for homemovers is MPowered Mortgages. Its two-year fix charges 4.52% and a £999 arrangement fee, while its three-year fix charges 4.42% and a larger arrangement fee of £1,999. Both deals have a maximum LTV of 60% and offer a free valuation as an incentive. They are available to borrowers in England and Wales via an intermediary.
If you’re moving to an energy-efficient home, there are mortgage deals that offer extra perks for these properties. For example, Lloyds Bank offers a two-year fix at 4.66% that offers £250 cashback if your home has an Energy Efficiency rating of 81 or higher. This deal has a maximum LTV of 60% and offers a free valuation as an extra benefit.
Homemovers who would prefer a three-year fix with a higher LTV could consider the deal from The Co-operative Bank at 4.67%. Featuring as a Moneyfacts Best Buy, this deal can finance up to 75% LTV and charges a £999 arrangement fee. It offers a free valuation and £250 cashback as extra incentives to borrowers.
After cutting some of its rates, Barclays Mortgage now offers the lowest five-year fix for homemovers at 4.17%. It can finance up to 60% LTV, charges an £899 arrangement fee and offers a free valuation as an incentive.
Alternatively, first direct offers a five-year fix at 4.54% that can finance up to 85% of your new property. It charges a smaller booking fee of £490 and offers a free valuation as an incentive, all of which helps it to feature as a Moneyfacts Best Buy.
Rate: 5.07% fixed until 1 June 2026 before reverting to 8.24%
Initial period: 2 years
Product fee: £999
Maximum loan-to-value: 90%
APRC: 7.9%
Representative example: £168,000 mortgage over 25 years initially at 5.07% fixed for 26 months reverting to 8.24% variable for term. 26 monthly payments of £988.98 and 274 monthly payments of £1300.46. Total amount payable £383,238.52 includes loan amount, interest of £214,040, valuation fees of £0 and product fees of £999. The overall cost for comparison is 7.9% APRC representative.
Rate: 4.64% fixed until 30 June 2029 before reverting to 9.49%
Initial period: 5 years
Product fee: £1,499
Maximum loan-to-value: 90%
APRC: 7.6%
Representative example: £168,000 mortgage over 25 years initially at 4.64% fixed for 63 months reverting to 9.49% variable for term. 63 monthly payments of £947.20 and 237 monthly payments of £1373.40. Total amount payable £387,076.40 includes loan amount, interest of £217,169, valuation fees of £163 and product fees of £1499. The overall cost for comparison is 7.6% APRC representative.
Rate: 5.39% fixed until 31 May 2026 before reverting to 8.24%
Initial period: 2 years
Product fee: £999
Maximum loan-to-value: 95%
APRC: 8.4%
Representative example: £168,000 mortgage over 25 years initially at 5.39% fixed for 26 months reverting to 8.74% variable for term. 26 monthly payments of £1020.66 and 274 monthly payments of £1355.93. Total amount payable £399,310.98 includes loan amount, interest of £230,062, valuation fees of £200 and product fees of £999. The overall cost for comparison is 8.4% APRC representative.
Rate: 4.89% fixed until 30 September 2029 before reverting to 8.44%
Initial period: 5 years
Product fee: £599
Maximum loan-to-value: 95%
APRC: 7.0%
Representative example: £168,000 mortgage over 25 years initially at 4.89% fixed for 66 months reverting to 8.44% variable for term. 66 monthly payments of £971.37 and 234 monthly payments of £1276.90. Total amount payable £363,854.02 includes loan amount, interest of £194,905, valuation fees of £175 and product fees of £599. The overall cost for comparison is 7.0% APRC representative.
Cumberland BS offers the lowest two-year fixed mortgage for first-time buyers with a 10% deposit for another week. Charging a rate of 5.07% and a £999 arrangement fee, this deal comes with a free valuation for properties worth up to £750,000. It’s available to buyers in Great Britain, excluding London and the south-east of England.
Alternatively, Coventry BS offers a two-year fix with a maximum of 90% LTV that doesn’t charge any product fees. At a rate of 5.41%, this deal also offers the extra perks of a free valuation and £500 cashback.
Continuing to offer the lowest five-year fix with a maximum LTV of 90% is Clydesdale Bank at 4.64%. However, this deal, which is available via intermediaries, comes with a sizeable arrangement fee of £1,499 and doesn’t offer any extra incentives.
There are a number of other five-year fixes available if you want a deal with extra perks, including some that don’t charge any product fees. For example, first-time buyers wanting to minimise their upfront costs could consider the five-year fix from HSBC at 4.81% that doesn’t charge any product fees and offers the extra benefits of a free valuation and £500 cashback.
In a change this week, Halifax now offers the lowest two-year fix for first-time buyers with a 5% deposit. At a rate of 5.39%, this deal charges an arrangement fee of £999 and offers an extra incentive of £250 cashback if you’re moving to a property with an Energy Efficiency rating of 81 or higher.
Alternatively, Coventry BS offers a two-year fix at 5.69% that doesn’t charge any product fees. Featuring as a Moneyfacts Best Buy, this deal also offers a free valuation on properties and £500 cashback.
Family Building Society still offers the lowest five-year fix for first-time buyers with a 5% deposit, despite increasing the rate to 4.89%. This deal is a family mortgage, which means the family of first-time buyers can help them get on the property ladder by using their own savings or property as security.
Available to first-time buyers in England and Wales (excluding the Scilly Isles), this deal charges a £599 completion fee and offers a free valuation for properties worth up to £500,000, as well as £250 cashback.
As an alternative for those with a 5% deposit, Cumberland BS offers a Moneyfacts Best Buy deal at 5.10% that doesn’t charge any product fees. This five-year fix also offers a free valuation on properties worth up to £750,000 and is available to first-time buyers in Great Britain, excluding London and the south-east of England.
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