The best residential mortgages rates this week 24.7.20 | moneyfacts.co.uk

Michelle Monck

Michelle Monck

Consumer Finance Expert
Published: 24/07/2020

This week, NatWest launched a new range of 85% loan-to-value (LTV) mortgages after removing these due to the Coronavirus pandemic. The new mortgages are available to those moving home and looking to remortgage. However, borrowers will find that some of the best mortgage rates have increased this week. Several lenders increased their rates this week, including Barclays Bank – a consistent player in our mortgage charts – which increased its rates today. This could be lenders anticipating increased demand in the housing market following the change in stamp duty.

The best remortgage rates

Provider

Rate

Initial rate period

Product fee

Lloyds Bank

1.13% fixed

Two years

£999

Barclays Mortgage

1.38% fixed

Three years

£999

Lloyds Bank

1.35% fixed

Five years

£999

This week, Lloyds Bank retains its top rate for a two-year fixed rate remortgage at 60% LTV. The initial rate is 1.13% (3.2% APRC) fixed until 30 November 2022. After this, borrowers will need to find a new mortgage deal or face a higher rate of 3.59% variable. The product fee is £999 and incentives of free valuation and no legal fees included.


Barclays Bank continues to hold the top spot for the best three-year fixed rate remortgage at 60% LTV. However, the rate has seen an increase from 1.28% fixed available last week to 1.38% fixed (3.1% APRC). The fixed rate period lasts until 31 October 2023, reverting to 3.59% variable thereafter. The product fee is £999 and there are free valuations and no legal fees.


The best five-year fixed rate remortgage at 60% LTV continues to be from Lloyds Bank, at the same rate as last week at 1.35% fixed (2.8% APRC) until 30 November 2025. After this, the rate reverts to 3.59% variable. As with the other top remortgages available, the product fee is £999 and incentives include free valuation and no legal fees. Those who are Club Lloyds account holders can also receive £200 cashback.

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

West Brom Building Society

1.14% fixed

Two years

£999

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

All the best mortgage rates for those wanting to move home have increased this week compared to last week, due to the change of pricing from Barclays Bank. Now, the top-spot for those buying a new home looking for a two-year fixed rate mortgage at 60% LTV is held by the West Brom Building Society. Its initial rate is 1.14% fixed (3.6% APRC) until 30 September 2022, after which it reverts to 3.99% variable. There is a £999 product fee and free valuation is included.


The West Midlands Building Society now also has the best rate for a three-year fixed rate mortgage for those wanting to move to a new property. At 60% LTV, its rate is 1.34% fixed (3.4% APRC) until 30 September 2023. After this, the rate will increase to 3.99% variable. The product fee is £999 and there are free valuations.

In the five-year fixed mortgage chart for those moving home, the best rate at 60% LTV is from Platform. Platform is a part of The Co-operative Bank and it only accepts mortgage applications from mortgage brokers. This means borrowers cannot apply directly for this mortgage with The Co-operative Bank or Platform. Its rate is 1.39% fixed (3.2% APRC) until 30 November 2025, after which it reverts to 4.34% variable. The product fee is higher than other market-leading rates now at £1,499 and applicants need a joint minimum income of £15,000. It does offer a free valuation and £250 cashback.
While the rate from Platform is the best available, its fee of £1,499, if added to the mortgage balance, would make this more expensive over the five-year term compared to the next best rate from the West Brom Building Society. West Brom Building Society also accepts mortgage applications directly and it is for these reasons it is featured on our best five-year fixed mortgages for home movers this week. West Brom Building Society offers a rate of 1.40% fixed (3.0% APRC) until 30 September 2025, and after this the rate increases to 3.99% variable. The fee is £999 and free valuation is included.

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

2.24% fixed

Two years

£999

Nationwide Building Society

2.79% fixed

Three years

£999

HSBC

2.56% fixed

Five years

£1,499

HSBC

2.59% fixed

Five years

£999

The trend of the best rates for a five-year fixed first-time buyer mortgage at a lower rate than three-years continues this week. HSBC has retained the best rates for first-time mortgages at 90% LTV for two-year and five-year fixed deals. Meanwhile, Nationwide Building Society now has the best rate for those buying their first home and wanting a three-year fixed mortgage. First-time mortgage borrowers wanting a three-year fixed term will find the best rate significantly improved, from 3.19% last week to 2.79% this week.


The lowest two-year fixed rate first-time buyer mortgage at a 90% LTV is still from HSBC this week. HSBC offers 2.24% (3.4% APRC) fixed until 30 September 2022. The rate then increases to 3.54% variable. There is a £999 product fee and free valuations.


The lowest three-year fixed rate for those buying their first home is 2.79% fixed (3.5% APRC) from Nationwide Building Society. Buyers need at least a 10% deposit and there is a £999 product fee. This mortgage also comes with the additional incentives of £500 cashback and free valuations. After the initial three-year fixed period, this mortgage will increase in rate to 3.59% variable.

This week, HSBC continues to offer the lowest five-year fixed rate first-time buyer mortgage at 90% LTV. However, unlike its two-year fixed counterpart, this mortgage requires applicants to earn a total of at least £75,000. The rate is 2.56% (3.3% APRC) fixed until 30 September 2025 and this then reverts to 3.54% variable. The product fee is £1,499, which if added to the mortgage balance would make it more expensive over the five-year term compared to the next best rate. This is also from HSBC at 2.59%. This mortgage has a lower product fee of £999 and does not require a minimum income of £75,000. A buyer borrowing £160,000 over a 25-year term that added their fees to the mortgage balance would save £353.90 over the full five-year fixed period by taking the 2.59% HSBC mortgage.
The 2.56% fixed rate (3.3% APRC) continues to 30 September 2025 and will then revert to 3.54% variable. It also offers free valuations.

Those borrowers interested in HSBC mortgages can call them to find out more on 0808 291 1740.

First-time buyer mortgages

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

Borrowers who are interested in any of these deals can speak to a mortgage broker. Speak To A Broker today for more information.

Speak to a mortgage broker

Speak to a professional mortgage broker and find those lenders most likely to accept your application.

Call our preferred mortgage broker Premier Financial Group for a free consultation on 0800 193 6644 or request a call back.

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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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