Derin Clark

Derin Clark

Online Reporter
Published: 27/09/2019

The biggest mortgage news story this week was the fact that Sainsbury’s Bank has pulled out of the mortgage chart. While in the long-run this will likely weaken competition within the mortgage sector, at the moment the market remains highly competitive, with low rates available across the charts.

The best mortgage rates for home-movers

Provider Rate Initial rate period Product fee
NatWest 1.21% fixed Two years £995
HSBC 1.44% fixed Three years £999
NatWest 1.55% fixed Five years £995

There has been no movement at the top of the moving home chart this week, with NatWest continuing to offer the top rate of 1.21% (3.7%) fixed until 31 January 2022, reverting to 4.24% thereafter. NatWest also remains at the top of the five year fixed chart this week with a rate of 1.55% (3.2% APRC) fixed until 31 January 2025, after which it reverts to 4.24%. Both these mortgage deals are available for those looking for a 60% loan-to-value (LTV) and who require a minimum loan of £25,000 to a maximum of £2m. They both charge £995 in product fees and include the incentive of £250 cashback. Overpayments are allowed with both deals.

HSBC stayed at the top of the three year fixed chart this week with its rate of 1.44% (3.5%) fixed until 31 January 2023 and then reverts to 4.19%. This mortgage requires borrowers to have a minimum earned income of £15,000. It is available to those looking for a 60% LTV and who require a minimum loan of £10,000 to a maximum of £5m. It charges £999 in product fees and includes the incentive of free valuations. Overpayments are also allowed.

The best first-time buyer mortgage rates

Provider Rate Initial rate period Product fee
Newcastle Building Society 2.59% fixed Two years £498
Family Building Society 2.84 fixed Three years £599
Barclays Mortgage 2.75% fixed Five years £0

The top of the first-time buyer chart has also remained unchanged this week with Newcastle Building Society offering the top rate of 2.59% (5.1% APRC) fixed until 28 February 2022, after which it reverts to 4.49%. This deal is available to those looking for a 95% LTV and who require a minimum loan of £30,000, while the maximum is dependent on LTV. It charges £498 and while it does not offer any incentives it does allow overpayments.

Family Building Society continued to offer the top rate in the three year fixed chart this week, offering 2.84% (4.5% APRC) fixed until 28 February 2023, reverting to 5.04% thereafter. Borrowers should be aware this deal requires help from a family member allowing their assets to work for the buyer as security for the mortgage. This deal is available to those looking for a 95% LTV and who require a minimum loan of £45,000 to a maximum of £500,000. The product fees on this mortgage are £599 and it includes the incentives of free valuation for properties valued to a maximum of £500,000, as well as free legal fees or £250 cashback. Overpayments are allowed.   

The top rate in the five year chart was once again offered by Barclays Mortgage offering a rate of 2.75% (3.7% APRC) fixed until 31 October 2024, after which it reverts to 4.24%. Borrowers should be aware that this mortgage requires a parent or guardian to act as a guarantor. It is available to those looking for a 95% LTV and who require a minimum loan of £5,0000 to a maximum of £500,000. It does not charge any product fees and includes the incentive of free valuation for properties valued to a maximum of £2m. Overpayments are also allowed.  

The best remortgage rates

Provider Rate Initial rate period Product fee
HSBC 1.24% Two years £999
HSBC 1.44% Three years £999
Virgin Money 1.56% Five years £995

Although several mortgage lenders offer the top rate of 1.24% this week in the remortgage chart, HSBC has been chosen as it offers the lowest APRC at 3.7%. This rate is fixed until 31 January 2022, after which it reverts to 4.19%. HSBC also tops the three year chart this week offering 1.44% (3.5% APRC) fixed until 31 October 2023, reverting to 4.19% thereafter. Both these deals require borrowers to have a minimum earned income of £15,000. They are available to those looking for a 60% LTV and who require a minimum loan of £10,000 to a maximum of £5m. Both deals charge £999 in product fees and include the incentives of free valuation and no legal fees, as well as permitting overpayments.

Virgin Money continued to top the five year chart this week with its rate of 1.56% (3.6% APRC) fixed until 1 January 2025, after which it reverts to 4.99%. This mortgage is available to those looking for a 65% LTV and there is no minimum loan required, while the maximum is dependent on LTV. It charges £995 in product fees and includes the incentives of free valuation, as well as free legal fees or £500 cashback. 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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