The best residential mortgage rates this week 31.07.20 | moneyfacts.co.uk

Michelle Monck

Michelle Monck

Consumer Finance Expert
Published: 31/07/2020

This week has seen several rate increases for mortgages, particularly at higher loan-to-values (LTV). Halifax, TSB, Skipton Building Society, Virgin Money and Nationwide Building Society all increased their rates during the week on 85% LTV mortgages. HSBC increased its rates on 90% LTV mortgages, but they remain among the top rates for those with a smaller mortgage deposit.

Barclays Bank, West Brom Building Society and Yorkshire Building Society all withdrew mortgage products during the week, with the changes from Barclays and West Brom Building Society resulting in changes to some of the best mortgage rates available this week.

The best remortgage rates

Provider

Rate

Initial rate period

Product fee

Lloyds Bank

1.13% fixed

Two years

£999

West Brom Building Society

1.39% fixed

Three years

£999

Lloyds Bank

1.35% fixed

Five years

£999

The best remortgage rates at 60% (LTV) this week had only one change. Lloyds Bank continues to dominate with the best rates for remortgages at two and five-year fixed and West Brom Building Society has taken the top spot for a three-year fixed, following Barclays Bank withdrawing its product.

Lloyds Bank has the top two-year fixed remortgage rate of 1.13% (3.2% APRC) fixed until 30 November 2022. At the end of the fixed rate period, this increases to 3.59% variable. The product fee is £999, and incentives of free valuation and no legal fees are included.

The best rate for a three-year fixed rate remortgage is from West Brom Building Society at 1.39% (3.4% APRC) until 30 September 2023. This rate is only fractionally higher than the previous top rate from Barclays Bank at 1.38% (now closed). The fees for the West Brom mortgage are £999, and after the three-year fixed period, the rate of 1.39% will revert to 3.99% variable. This mortgage is only available for remortgages and includes free valuation and legal fees.

Lloyds Bank retains the best rate for a five-year fixed rate remortgage at 60% LTV at 1.35% fixed (2.8% APRC) until 30 November 2025. The rate will increase at the end of this period to 3.59% variable. The product fee is also £999, and incentives include free valuation and no legal fees. Club Lloyds account holders can also receive £200 cashback.

The best 80% remortgage rates

Those wanting to remortgage at 80% LTV will find the most competitive rate is again from Lloyds Bank at 1.43% (3.3% APRC) fixed until 30 November 2022, then reverting to 3.59% variable. This mortgage has a fee of £999, while free valuation and free legal fees are included. There is also the option of £200 cashback for Club Lloyds account holders. Leek United Building Society also offers the same rate and fixed period but with a higher fee of £1,495, making this a more expensive option for those wanting to add the fees to their mortgage borrowing. NatWest offers a rate of 1.45% (3.3% APRC) fixed until 30 September 2022 reverting to 3.59% variable. The fee is £999 and there are free valuation and legal fees included.

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 fees

Leeds Building Society

1.14% fixed

Two years

£1,999

RBS and NatWest

1.17% fixed

Two years

£995

West Brom Building Society

1.34% fixed

Three years

£999

Platform part of The Co-operative Bank

1.39% fixed

Five years

£1,499

West Brom Building Society

1.40% fixed

Five years

£999

There are some changes and additions to the rate tables for the best mortgages for moving home at 60% LTV this week.
West Brom Building Society withdrew its two-year fixed mortgage at 1.14% during the week and Leeds Building Society now has the best rate, also at 1.14%. However, this mortgage has one of the highest fees in the market. Those wanting to add fees to their mortgage borrowing will find that there are other mortgages available that will cost less over the life of the fixed rate, even though they have a slightly higher rate. For example, those wanting to borrow £220,000 (including fees) will save nearly £1,500 over two years by choosing the NatWest or RBS mortgage compared to the one from Leeds Building Society. The repayments made over two years would be £22,284.36 to Leeds Building Society and only £21,704.84 to RBS or NatWest over the same period.

The Leeds Building Society best rate of 1.14% (4.4% APRC) is fixed until 31 October 2022 and will revert to 4.04% variable. This mortgage is available up to 75% LTV. Free valuation is included.
RBS and NatWest both offer a 1.17% two-year fixed rate remortgage (3.2% APRC) until 30 September 2022. After this, the rate will increase to 3.59% variable. The fee is £995 and there is £250 cashback available.

West Brom Building Society has the best three-year fixed rate mortgage at 60% LTV at 1.34% fixed until 30 September 2023, after which it then reverts to 3.99% variable. The fee is £999 and free valuations are included.

The best five-year fixed rates for moving home have stayed the same this week from The Co-operative Bank and West Brom Building Society. The Co-operative Bank offers the lowest rate of 1.39% fixed (3.2% APRC) but with a hefty £1,499 fee, while The West Brom Building Society is only slightly higher at 1.40% fixed (3.0% APRC) and it offers a fee more in line with the rest of the market at £999.
The Co-operative Bank mortgage is fixed until 30 November 2025, while the West Brom mortgage is slightly shorter ending 30 September 2025. Both will see the rates increase after the fixed period, with The Co-operative Bank rate rising to 4.34% variable and the West Brom rate rising to £3.99% variable.

On incentives, The Co-operative Bank mortgage offers free legals (free legal fees are for remortgages only) and valuations, as well as £250 cashback. West Brom’s incentives are more modest with free valuation only.

Borrowers that need to add the fee to their mortgage may find the West Brom mortgage offers better value over the five-year term compared to the mortgage from The Co-operative Bank.

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 fees

HSBC

2.44% fixed

Two years

£999

Nationwide Building Society

2.79% fixed

Three years

£999

HSBC

2.71% fixed

Five years

£1,499

HSBC

2.74% fixed

Five years

£999

HSBC has increased its 90% LTV mortgage rates this week, meaning borrowers agreeing HSBC deals this week will see slightly higher interest costs than earlier in July 2020. The rest of the first-time buyer mortgage chart at 90% LTV remains unchanged this week.
The lowest two-year fixed rate first-time buyer mortgage at a 90% LTV is still from HSBC this week – albeit at a higher rate of 2.44% (3.4% APRC) fixed until 30 September 2022. The rate then increases to 3.54% variable. The mortgage has a £999 product fee and free valuations.

Need a 90% LTV remortgage or are moving home?

HSBC also offers it 90% first-time buyer mortgages to those wanting to remortgage or buy their next home. This includes the two-year fixed rate mortgage at 2.44% discussed above and a 2.69% a fixed for the same period with no product fee.

Nationwide Building Society continues to offer the lowest three-year fixed rate first-time buyers this week. Their rate is 2.79% fixed (3.5% APRC) fixed for three years, after this the rate reverts to 3.59% variable. There is a £999 product fee and first-time buyers can benefit from free valuations and £500 cashback.
HSBC has the best rates for a five-year fixed rate mortgage for those buying their first home. They offer two rates; the lowest rate is only available to those earning more than £75,000. The second has no minimum income stated and buyers will still need to meet the lender’s mortgage affordability tests.
The £75,000 minimum salary mortgage has a rate of 2.71% (3.3% APRC) and the no salary required has a rate of 2.74%. Both remain fixed until 30 September 2025, after which the rate reverts to 3.54%. The former has a fee of £1,499 while the latter has a fee of £999.

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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