Derin Clark

Derin Clark

Online Reporter
Published: 23/08/2019

In just the last three weeks the average five-year fixed rate mortgage has fallen from 2.84% to 2.79%, research by Moneyfacts.co.uk found. In addition to this, the gap between the average two and five-year fixed mortgage rates has fallen to 0.325%, a drop of 0.03%, over the same period. For borrowers, this means that five-year fixed rate mortgages are becoming more competitive and signals good news for those wanting the security of locking their mortgage rate into a five-year term.

The best mortgage rates for home-movers

Provider Rate Initial rate period Product fee
NatWest 1.24% variable Two years £995
NatWest 1.28% fixed Two years £995
HSBC 1.56% fixed Three years £1,499
Santander 1.65% fixed Five years £999

This week NatWest continued to top the moving home mortgage chart overall as well as the two- year fixed chart. It offers the top rate of 1.24% (3.8% APRC) variable until 31 October 2021, while in the two-year fixed chart it offers 1.28% (3.8% APRC) fixed until 31 October 2021, both rates then revert to 4.24%. Both deals are for a maximum 60% loan-to-value (LTV) and require a minimum loan of £25,000 up to a maximum of £2m. They both charge £995 and include the incentive of £250 cashback. Both deals also allow overpayments.

Topping the three-year fixed chart this week is HSBC offering 1.56% (3.6% APRC) which is fixed until 31 October 2022 and then reverts to 4.19%. This deal is available up to a maximum 60% LTV and requires a minimum loan of £10,000 to a maximum of £5m. In addition to this, this deal is only available to those with an earned income of £75,000 or over. It charges £1,499 and includes the incentive of free valuations. Overpayments are allowed.

Last week’s top five-year fixed rate dropped out of the chart this week, and as a result Santander was new to the top of the chart offering 1.65% (3.1% APRC) fixed until 2 December 2024, which then reverts to 4.00%. This deal is available up to a maximum 60% LTV and who require a loan of between £6,000 and £1m. The deal charges £999 in product fees and includes the incentive of free valuations to a maximum of £1,190 for properties valued to a maximum of £2.5m. Overpayments are allowed.

The best first-time buyer mortgage rates

Provider Rate Initial rate period Product fee
Newcastle Building Society 2.59% fixed Two years £498
Marsden Building Society 2.89% fixed Three years £0
Barclays Mortgage 2.75% fixed Five years £0

The rate topping the first-time buyer chart overall was from Newcastle Building Society offering 2.59% (5.1% APRC) fixed until 31 October 2021, which reverts to 4.49%. This deal if available to those needing a maximum 95% LTV and who require a minimum loan of £30,000, while the maximum is dependent on LTV. It charges £498 in product fees and, while there are no incentives, it does allow overpayments.

First-time buyers looking to lock their rate into a three-year term could get a top rate of 2.89% (5.4% APRC) fixed until 30 September 2022, reverting to 6.20% thereafter. This rate is available from Marsden Building Society and requires an earned income of a minimum of £20,000. It is available to those needing a maximum 95% LTV and who require a minimum loan of £30,000 to a maximum of £350,000. There are no product fees with this deal and it includes the incentive of free valuations for properties valued up to a maximum of £500,000. Overpayments are allowed.

The five-year chart was topped by Barclays Bank this week offering a rate of 2.75% (3.7% APRC) fixed until 31 October 2024, which then reverts to 4.24%. Borrowers should be aware that this deal requires a deposit from a guarantor, such as a parent, to use as security. It is available up to  a maximum 95% LTV for those who require a minimum loan of £5,000 to a maximum of £500,000. There are no product fees with this deal and it includes the incentive of free valuations for properties valued up to a maximum £2m. Overpayments are allowed.

The best remortgage rates

Provider Rate Initial rate period Product fee
Santander 1.28% fixed Two years £999
HSBC 1.56% fixed Three years £1,499
Santander 1.65% fixed Five years £999

New to the top of the remortgage chart this week was Santander offering 1.28% (3.6% APRC) which is fixed until 2 December 2021, after which it reverts to 4.00%. This deal is available to borrowers needing a maximum 60% LTV and who require a minimum loan of £6,000 to a maximum of £1m. It charges £999 in product fees and includes the incentives of free valuations to a maximum of £1,190 in England, Wales and Northern Ireland or £95 towards valuation fees in Scotland. In addition to this it also includes £250 cashback on completion or free legal fees. Overpayments are also allowed.

In the three-year fixed chart HSBC offered the top rate of 1.56% (3.6% APRC) fixed until 31 October 2022, reverting to 4.19% thereafter. This deal is available to those needing a maximum 60% LTV and who require a minimum loan of £10,000 to a maximum of £5m. As well as this, it is only available to those with a minimum earned income of £75,000. It charges £1,499 in product fees and includes the incentives of free valuations and free legal fees. Overpayments are allowed.

Santander was also new to the top of this week’s five-year fixed chart offering a rate of 1.65% (3.2% APRC) fixed until 2 December 2024, which then reverts to 4.00%. This rate is available to those needing a maximum 60% LTV and who are looking to borrow a minimum of £6,000 to a maximum of £1m. It charges £999 in product fees and includes the incentives of free valuations for those in England, Wales and Northern Ireland or £95 towards valuation fees for those in Scotland, along with either £250 cashback on completion or free legal fees. Overpayments are allowed.

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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