Derin Clark

Derin Clark

Online Reporter
Published: 24/05/2019

This week Tesco Bank announced that it was leaving the mortgage market, a decision it made partly due to the intense competition within the mortgage sector. Soon after this announcement, Nationwide Building Society revealed that its profits have fallen year-on-year by 19%, which it suggests is partly due to fierce competition. While the news that Tesco Bank is pulling out of the sector means that there will be less choice for mortgage borrows and will reduce competition, this news does show that the mortgage market is highly competitive at the moment and there are some great rates available to borrowers.

Moving home mortgage rates

  • Cumberland Building Society – 1.26% discounted variable for two years
  • Furness Building Society – 1.39% fixed for two years
  • Barclays Mortgage – 1.63% fixed for three years
  • Skipton Building Society – 1.78% fixed for five years

The lowest rate available in the moving home mortgage chart this week came from Cumberland Building Society, which was offering a discounted variable rate of 1.26% for two years on a 40% deposit/equity (60% loan-to-value). This rate has a product fee of £1,999 and allows overpayments.

For those looking to lock their mortgage into a fixed rate, the lowest rate was from Furness Building Society offering 1.39% that is fixed for two years on a 40% deposit/equity (60% LTV). This product includes a fee of £1,250 but comes with the incentives of free valuation (up to a maximum of £665) and allows overpayments. Topping the three-year fixed rate chart this week was Barclays Mortgage offering 1.63% fixed to 31 July 2022 on a 40% deposit/equity (60% LTV). This deal charges a fee of £999 and includes the incentives of free valuation for properties valued to a maximum of £2m and it allows overpayments too. For those wanting fixed repayments for five years, Skipton Building Society was offering the lowest rate of 1.78% fixed until 31 July 2024. This deal includes a fee of £1,995 but comes with the incentive of free valuation. It also allows overpayments and payment holidays.

First-time buyer mortgage rates

  • Loughborough Building Society - 1.74% discounted variable
  • Newcastle Building Society – 2.59% fixed for two years
  • Barclays Mortgage – 2.75% fixed for three years
  • Saffron Building Society – 2.97% fixed for five years

The lowest rate for first-time buyers came in the 90% LTV chart, where Loughborough Building Society was offering 1.74% discounted variable rate (collared at 1.50%) for two years. This deal includes a £999 product fee, however it does permit overpayments.

Within the fixed-term first-time buyer charts, the lowest rate on offer came from Newcastle Building Society, which was offering 2.59% fixed to 31 July 2021 on a 5% deposit/equity (95% LTV). A fee of £498 is applied with this deal and it allows overpayments. Barclays Mortgage offered the lowest rate within the three-year fixed rate chart, offering 2.75% fixed to 31 July 2022 on a 5% deposit/equity (95% LTV). There is no product fee with this deal and it includes the incentive of no valuation fees for properties valued to a maximum of £2m. Overpayments are allowed. The lowest rate in the five-year fixed rate chart came from Saffron Building Society offering 2.97% fixed to 30 November 2024 on a 5% deposit/equity (95% LTV). This has no product fee and includes the incentive of free valuation as well as permitting overpayments.  

Remortgage rates

  • Cumberland Building Society – 1.26% discounted variable
  • Furness Building Society – 1.39% fixed for two years
  • Barclays Mortgage – 1.63% fixed for three years
  • Skipton Building Society – 1.78% fixed for five years

The lowest rate in the remortgage chart came from Cumberland Building Society which was offering 1.26% discount variable for two years on a 40% deposit/equity (60% LTV). This deal charges a fee of £1,999, but includes the incentives of free valuation and free legal fees. Overpayments are allowed with this mortgage.

Topping the two-year fixed rate chart this week was Furness Building Society offering 1.39% fixed for two years at a 60% LTV. It includes a £1,250 fee, but does however come with the incentives of free valuation (up to a maximum of £665) and free legal fees. Overpayments are allowed. Barclays Mortgage topped the three-year chart this week offering 1.63% fixed until 31 July 2022 on a40% deposit/equity (60% LTV). A product fee of £999 is charged with this deal, however it includes the incentives of free valuation and free legal fees, and it also allows overpayments. In the five-year fixed chart, Skipton Building Society took top place this week offering 1.78% fixed until 31 July 2024 for a 40% equity/deposit (60% LTV). A £1,995 fee is charged for this deal, but it includes the incentives of free valuation and free legal fees. Both overpayments and payment holidays 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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