The best residential mortgage rates this week 28.08.20

This week we reported that since July 2020 average mortgage rates had started to rise. Although mortgage rates still remain competitively low, this could be a sign that lenders are looking to raise rates and, as such, those thinking about locking into a new deal may want to consider acting quickly to avoid missing out on the lowest rates.

Mortgage borrowers should keep in mind that when looking at deals, the lowest rate being offered might not be the best overall deal. Instead, borrowers should consider a range of factors such as flexible features, incentives and product fees when choosing a deal. Those wanting help and advice on choosing the right deal for their individual circumstances should consider speaking to a mortgage broker.

HSBC continued to have the lowest rate at a 60% loan-to-value (LTV) in both the two and five year remortgage charts this week. In the two year chart it offers 1.14% (3.2% APRC) fixed until 31 December 2022, which then reverts to 3.54%. In the five year chart it offers 1.34% (2.7% APRC) fixed until 31 December 2025 and then reverts to 3.54%. Both these deals charge £999 in product fees and come with the incentives of free valuations and no legal fees.

The lowest rate in the three year fixed remortgage chart this week came from West Brom Building Society. It offers 1.64% (3.4% APRC) fixed until 30 November 2023, which then reverts to 3.99%. This deal is available for those looking for a 60% LTV. It does not charge any product fees and comes with the incentives of free valuations to a maximum of £740 and no legal fees.

In the moving home mortgage chart HSBC had the lowest two and five year fixed deals at a 60% LTV. In the two year chart it offers 1.14% (3.2% APRC) fixed until 31 December 2022, which reverts to 3.54%. In the five year chart it offers 1.34% (2.7% APRC) fixed until 31 December 2025 and then reverts to 3.54%. Both deals charge £999 in product fees and come with the incentive of free valuations.

The lowest three year moving home rate without location opening restrictions came from Virgin Money this week, offering 1.89% (3.6% APRC) fixed until 1 January 2024 and then reverts to 4.34%. This deal is available at a 65% LTV. It charges £995 in product fees and comes with the incentive of free valuations.

First-time buyers looking for a two year fixed mortgage at a 90% LTV will find that HSBC offered the lowest rate this week. It offers 2.44% (3.4% APRC) fixed until 31 December 2022, which then reverts to 3.54%. HSBC also had the lowest five year first-time buyer deal at a 90% LTV offering 2.74% (3.3% APRC) fixed until 31 December 2025 and then reverts to 3.54%. Both deals charge £999 in product fees and come with the incentive of free valuations.

The lowest rate in the three year first-time buyer chart that is available to those in all areas of England and Wales comes from Buckinghamshire Building Society. It offers 3.59% (4.6% APRC) fixed until 31 August 2023, which then reverts to 4.74%. It is available at a 100 LTV and is a family assist deal, which means that the borrower’s parents’ or grandparents’ property is used as security against the mortgage. It charges £850 in product fees. There are no incentives with this deal.