The best residential mortgage rates this week 25.09.20 | moneyfacts.co.uk

Michelle Monck

Michelle Monck

Consumer Finance Expert
Published: 25/09/2020

This week many mortgage lenders continued to increase their interest rates and the situation for those wanting a 90% loan-to-value (LTV), especially first-time buyers remains severely restricted.
The charts below show the best mortgage rates for those wanting to remortgage, move home and for first-time buyers. We list the best mortgage deals available directly from the lender that are available across Great Britain. All the rates shown are for those mortgages available at 60% LTV unless otherwise stated.

 

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The best remortgage rates

Provider

Rate

Initial rate period

Product fee

Lloyds Bank

1.17% fixed

Two years

£999

Barclays

1.72% fixed

Three years

£999

Lloyds Bank

1.39% fixed

Five years

£999

The best rates for remortgages across two, three- and five-year fixed terms remain unchanged this week.
Lloyds Bank still has the lowest two-year fixed rate mortgage at 1.17% (3.3% APRC) fixed until 30 November 2022. The rate increases to 3.59% after this. This mortgage has a fee of £999 and comes with free valuation and legal fees.
Barclays Bank has retained the best rate for a three-year fixed rate mortgage. It offers a rate of 1.72% (3.2% APRC) fixed until 30 November 2023. The rate increases to 3.59% after this and the fee is £999. There are free legal and valuation fees. This mortgage is available to those with a 75% loan-to-value (LTV) and either buying a home or needing to remortgage.
The lowest five-year fixed rate remortgage is again from Lloyds Bank this week at 1.39% (2.8% APRC) fixed until 30 November 2025, after this the rate increases to 3.59%. There is a fee of £999.. Free valuations are available and those remortgaging can also get free legal fees. £200 cashback is available those with a Club Lloyds account.
Those looking to remortgage at 80% LTV will find the best rate for a two-year fixed rate mortgage is from Lloyds Bank at 1.50% fixed until 30 November 2022. After this the rate increases to 3.59%. The fee is £999 and there are free valuation and legal fees. Club Lloyds account holders can also get £200 cashback.

Remortgages

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

 

The best mortgage rates for home-movers

Provider

Rate

Initial rate period

Product fee

Virgin Money

1.24% fixed

Two years

£1,495

Barclays Bank

1.72% fixed

Three years

£999

Barclays Bank

1.42% fixed

Five years

£999

Barclays Bank

1.99% fixed

Ten years

£999

This week, West Brom Building Society no longer has the lowest rate for a two-year fixed rate mortgage for those purchasing a home. Virgin Money now has the lowest rate of 1.24% (3.7% APRC) until 1 January 2023. After this the rate increases to 4.34%. The fee is higher than many others at £1,495. There are free valuation fees available. This mortgage is available for those with a maximum LTV of 65%.
Barclays Bank has retained the lowest rates for three and five-year fixed rate mortgages for home movers. It also has the best rate for ten-year fixed rate mortgages too. It offers a three-year fixed rate of 1.72% (3.2 APRC) fixed until 31 October 2023 after which the rate increases to 3.59%. Borrowers requiring up to 75% LTV can qualify for this mortgage. The fee is £999 and there are free valuation fees available. This mortgage is also available to those wanting to remortgage, it then offers free valuation and legal fees.
The lowest rate for a five-year fixed rate mortgage for moving home is from Barclays Bank with a rate of 1.42% (2.8% APRC) fixed until 31 October 2025. The rate then increases to 3.59%. There is a fee of £999 and this mortgage offers free valuations.. This mortgage is also available to those wanting to remortgage. Those getting a remortgage can choose between£250 cashback or free legal fees.

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

Nationwide Building Society

3.24% fixed at 90% LTV

Two and five years

£999

 

 

 

 

Teachers Building Society

3.74% fixed at 90%

Five years

£199

Virgin Money

3.79% fixed at 90%

Seven years

£995

Al Rayan Bank (home purchase plans only)

4.49% fixed at 90%

Two years

£999

We wrote this week about the post-code lottery faced by first-time buyers that only have a 10% deposit. This showed that those in the midlands and north of England had nearly double the choice of mortgages compared to those in the south. This is because there are now only four lenders offering mortgages to first-time buyers at 90% LTV and then a selection of lenders with mortgages only available locally to the them. We’ve listed above the best rates from those lenders offering these mortgages nationwide.

Nationwide Building Society offers a rate of 3.24% (3.6% APRC) fixed for two or five years after which the rate increases to 3.59%. There is a fee of £999. These mortgages come with free valuation and £500 cashback. Applicants should note that Nationwide Building Society has specific rules and restrictions about the types of property they will accept and gifted deposits from family members.

Virgin Money offers a seven-year fixed rate mortgage at 3.79% (4.1% APRC) fixed until 1 January 2028, after which the rate reverts to 4.09%. The fee is £995 and there are free valuation fees.

Teachers Building Society has a rate of 3.74% (4.6% APRC) until 14 June 2025. After this the rate increases to 4.89%. This mortgage has a fee of £199 and there are free valuation fees available on properties up to a maximum value of £800,000.

Al Rayan Bank offers a home purchase plan. This is an alternative to a mortgage, where the bank will buy the property and become its legal owner. The borrower will lease the property from the bank, but they retain the right to sell it when they wish and when the fixed rate period is over they can buy it back from the bank at the same price as paid originally. We explain more in our guide to home purchase plans. Al Rayan Bank offers a rate of 4.49% (4.4% APRC) fixed until 31 December 2022 reverting to 4.09%. There is a product fee of £999 and help towards legal fees up to a maximum of £400.


Alternatives for those unable to get a mortgage with the lenders above, can also consider a guarantor mortgage and getting a Help to Buy loan if they intend to buy a new build property. Speaking with a mortgage broker is very important to help make sure that these mortgage types are right for the borrower.

First-time buyer mortgages

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

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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