The Best Residential Mortgage Rates This Week 7.5.20 | moneyfacts.co.uk

Derin Clark

Derin Clark

Online Reporter
Published: 07/05/2020

Although the housing market has slowed significantly since the social distancing measures were introduced in March to help reduce the spread of the Coronavirus, those looking for a mortgage will find that there are still some highly competitive rates available in the charts.

While it can be tempting to choose a mortgage deal on the rate being offered, borrowers should be aware that the lowest rate may not be the best deal for their personal circumstances. Instead, it is important to consider a range of factors such as product fees and incentives, along with the rate when choosing the best mortgage deal.

The best mortgage rate for home-movers

Provider Rate Initial rate period Product fee
HSBC 1.19% fixed Two years £999
HSBC 1.34% fixed Three years £999
HSBC 1.41% fixed Five years £1,499

Once again HSBC offered the lowest moving home mortgage rate on two, three and five year fixed rate deals. In the two year chart HSBC offers 1.19% (3.2% APRC) fixed until 30 September 2022, which then reverts to 3.54%. This deal is available to those looking for a 60% loan-to-value (LTV) and who earn a minimum of £15,000. It charges £999 in product fees and includes the incentive of a free valuation. In the three year chart HSBC offers 1.34% (3.0% APRC) fixed until 30 September 2023, reverting to 3.54% thereafter. This deal has the same terms and conditions as the two year fixed mortgage.

In the five year chart HSBC offers 1.41% (2.8% APRC) fixed until 30 September 2025, which then reverts to 3.54%. This deal is available to those looking for a 60% LTV and a minimum income of £75,000 is needed. It charges £1,499 in product fees and comes with the incentive of a free valuation.

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 3.09% fixed Two years £999
Nationwide Building Society 3.39% fixed Three years £999
Barclays Mortgage 2.75% fixed Five years £0

Nationwide Building Society continued to offer the lowest rate in the first-time buyer two and three year fixed charts. In the two year chart Nationwide Building Society offers 3.09% (3.6% APRC) fixed for two years, which then reverts to 3.59%. This deal is available to those looking for a 95% LTV. It charges £999 in product fees and comes with the incentives of a free valuation and £500 cashback. In the three year fixed chart Nationwide Building Society offers 3.29% (3.7% APRC) fixed for three years, reverting to 3.59% thereafter. This deal has the same terms and conditions as the two year fixed mortgage.

The lowest rate in the five year first-time buyer chart came from Barclays Mortgage this week. Barclays Mortgage offers 2.75% (2.7 APRC) fixed until 31 July 2025, which then reverts to 2.59%. This deal is available to those looking for a 95% LTV. It does not charge any product fees and comes with the incentive of a free valuation for property values to a maximum of £2 million. Additional terms and conditions apply to this assisted mortgage.

First-time buyer mortgages

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

The best remortgage rates

Provider Rate Initial rate period Product fee
HSBC 1.19% fixed Two years £999
HSBC 1.34% fixed Three years £999
HSBC 1.41% fixed Five years £1,499

HSBC also continued to dominate the remortgage chart this week with the lowest rate in the two, three and five year fixed charts. In the two year chart HSBC offers 1.19% (3.2% APRC) fixed until 30 September 2022, which then reverts to 3.54%. This deal is available to those looking for a 60% LTV and who earn a minimum of £15,000. It charges product fees of £999 and comes with the incentives of a free valuation and no legal fees. In the three year chart HSBC offers 1.34% (3.0% APRC) fixed until 30 September 2023, reverting to 3.54% thereafter. This deal has the same terms and conditions as the two year mortgage.

In the five year chart, HSBC offers 1.41% (2.8% APRC) fixed until 30 September 2025, after which it reverts to 3.54%. This deal is available to those looking for a 60% LTV and who earn a minimum of £75,000. It charges £1,499 in product fees and comes with the incentive of a free valuation and no legal fees.

Remortgages

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

Borrowers who are interested in any of these deals can speak to a mortgage broker for more information.

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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