Derin Clark

Derin Clark

Online Reporter
Published: 31/05/2019

Intense competition within the mortgage market has continued this week and it was revealed that over the last five years, the rates at higher loan-to-value (LTV) tiers have fallen. This is especially good news for first-time buyers who traditionally have a smaller deposit and therefore look for mortgages at 90% and 95% LTV. In addition to this, there are highly competitive mortgage rates that can be found across our comparison mortgage charts.

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 until 31 July 2022
  • Skipton Building Society – 1.78% fixed until 31 July 2024

The lowest rate in the moving home mortgage chart once again this week came from Cumberland Building Society, which was offering an initial rate of 1.26% discounted variable for two years, before reverting to 4.74% variable for the remainder of the mortgage term. This mortgage, which has an APRC of 4.3%, requires a 60% LTV, charges £1,999 in product fees and allows overpayments.

For those looking to fix their mortgage for two years, the best rate available this week came from Furness Building Society, which was offering an initial rate of 1.39% fixed for two years reverting to 5.79% variable for the remainder of the mortgage term. This mortgage requires a 60% LTV and charges £1,250 in product fees. It comes with an APRC of 5.2% and allows overpayments. The best three-year fixed rate in the moving home chart came from Barclays Mortgage, which was offering 1.63% fixed for a 60% LTV. This reverts to 4.24% variable for the remainder of the term and has an APRC of 3.6%. This mortgage charges £999 in product fees and includes the incentive of free valuation for properties valued to a maximum of £2m and it allows overpayments. For those wanting to fix their mortgage for a longer term, the best rate in the five-year chart came from Skipton Building Society, which was offering an initial rate of 1.78% fixed, reverting to 4.99% variable for the remainder of the term on a 60% LTV. The APRC is 3.8%. This mortgage charges £1,995 in product fees and includes the incentive of free valuations and allows both overpayments and payment holidays.

First-time buyer mortgage rates

  • Newcastle Building Society - 2.59% fixed until 31 July 2021
  • Barclays Mortgage – 2.75% fixed until 31 July 2022
  • Saffron Building Society – 2.97% fixed until 30 November 2024

First-time buyers looking to fix their mortgage for a fixed term could get the lowest initial rate of 2.59% fixed to 31 July 2021 this week, which came from Newcastle Building Society. This fixed rate mortgage reverts to 4.49% variable for the remainder of the mortgage term and has an APRC of 5.1%. This rate requires a 95% LTV and charges £498 in product fees. It allows overpayments. In the three-year fixed rate chart, the lowest rate on offer came from Barclays Mortgage, which was offering an initial rate of 2.75% fixed to 31 July 2022 for a 95% LTV. This rate reverts to 4.24% variable after the fixed term period for the remainder of the mortgage term. The APRC is 3.9%. There are no product fees with this mortgage, and it includes the incentive of free valuations for properties to a maximum of £2m. Overpayments are also allowed. Topping the five-year chart this week was Saffron Building Society, which was offering an initial rate of 2.97% fixed to 30 November 2024. This rate reverts after the end of the initial term to 4.64% variable for the remainder of the mortgage. The APRC is 4.0%. This mortgage requires a 95% LTV and charges £135 in product fees. It offers the incentive of free valuation and allows overpayments.

Remortgage rates

  • Cumberland Building Society – 1.26% discounted variable
  • Furness Building Society – 1.39% fixed for two years
  • Barclays Mortgage – 1.63% fixed until 31 July 2022
  • Skipton Building Society – 1.78% fixed until 31 July 2024

Homeowners looking to remortgage and prepared to opt for a discounted variable rate could get the lowest rate in the mortgage chart this week of 1.26% discounted variable rate for two years from by Cumberland Building Society. After the initial term this reverts to 4.74% variable for the remainder of the mortgage term and the APRC is 4.3%. It requires a 60% LTV and charged £1,999 in product fees. The deal includes the incentives of free valuation and free legal fees. It allows overpayments. Those preferring to fix their rate could get the lowest rate in the remortgage chart of 1.39% that remains fixed for two years. After which the rate reverts to 5.79% variable for the remainder of the mortgage term. The APRC is 5.2%. This rate came from Furness Building Society and requires a 60% LTV and charges £1,250 in product fees. It includes the incentives of free valuation (up to a maximum of £665) and free legal fees. Overpayments are allowed. The lowest rate for a three-year fixed term was being offered by Barclays Mortgage 1.63% that is fixed to 31 July 2022, after which it reverts to 4.24% variable with an APRC of 3.7%. This mortgage requires a 60% LTV and charges £999 in product fees. Overpayments are allowed. Topping the five-year chart this week was Skipton Building Society offering a rate of 1.78% that is fixed until 31 July 2024 after this point it reverts to 4.99% variable for the remainder of the mortgage term. The APRC is 3.9%. This mortgage requires 60% LTV and charges £1,995 in product fees. A free valuation and free legal fees are all included with this mortgage. It allows both overpayments and payment holidays.

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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