The best residential mortgage rate this week 29.05.20 | moneyfacts.co.uk

Michelle Monck

Michelle Monck

Consumer Finance Expert
Published: 29/05/2020

The market continues to be competitive and not many of the best rates have changed this week as a result. We have extended this week’s review to include some of the best mortgage rates at 80% and 90% loan-to-value (LTV) and the best 10year fixed deal for home-movers.
Although lockdown has been eased slightly so that surveyors are able to return to work, this is likely to be a slow process. However, some lenders are using automated and desktop valuations to try and complete mortgages as quickly as possible.
Borrowers should remember that the lowest rate may not be the best mortgage deal for them. It’s important to consider the effect of fees on your total mortgage cost, plus any features such as flexibility for overpayments.

The best rates for remortgages

Provider

Rate

Initial rate period

Product fee

HSBC

1.14% fixed

Two years

£999

HSBC

1.29% fixed

Three years

£999

HSBC

1.36% fixed

Five years

£1,499

HSBC continues to offer the best remortgage rates at 60% loan-to-value (LTV) across two, three and five years. The bank’s two-year fixed rate mortgage is fixed at 1.14% (3.2% APRC) until 30 September 2022 and reverts to 3.54% variable thereafter. The fee is £999. The three-year fixed deal runs until 30 September 2023 with a fixed rate of 1.29% (3.0% APRC) reverting to 3.54% variable after the initial period. The fee is £999. The five-year mortgage from HSBC has a fixed rate of 1.36% until 30 September 2025 (2.8% APRC) reverting to 3.54% variable after this. The fee is higher for this longer deal at £1,499 and is only available to those with a minimum income of £75,000. Those that intend to add their product fees to the cost of their mortgage may find HSBC’s five-year deal at 1.39% fixed with a lower fee of £999 more cost-effective over the lifetime of the mortgage. All of the HSBC mortgage deals above are available for those remortgaging as well as first-time buyers and those moving home. They all offer free valuations and legal fees for those remortgaging. Those remortgaging at a higher LTV of 80% can get the best rate from Leek United Building Society at 1.40% discounted variable for two years reverting to 5.19% thereafter. This comes with no product fees and allows overpayments. Leek United Building Society is also using desktop or automated valuations for mortgages at this LTV, helping to complete the mortgage faster than waiting for a physical valuation. A mortgage broker can help provide more information about lenders using automated valuations.

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. Speak To A Broker today for more information.

The best mortgage rates for home-movers

Provider

Rate

Initial rate period

Product fee

HSBC

1.14% fixed

Two years

£999

Cumberland Building Society

1.13% discounted variable

Two years

£1,999

HSBC

1.29% fixed

Three years

£999

HSBC

1.36% fixed

Five years

£1,499

Halifax

2.07% fixed

10 years

£995

The chart for home-movers at 60% LTV also remains the same as last week, with HSBC taking most of the fixed rate top spots, alongside Cumberland Building Society. We have featured the HSBC products earlier in the remortgage category. The discounted variable mortgage from Cumberland Building Society has a discount rate of 2.96% against the Society’s standard variable rate of 4.09% and lasts for two years. This means the current rate is 1.13%, but this could go up or down if the Society changes its standard variable rate. The mortgage will revert to 4.09% variable after the two-year term expires. The APRC is 3.7%. The mortgage is available to those in Great Britain and the fee is £1,999. With little change in the table this week, we have added the best 10-year fixed rate mortgage for home-movers from the Halifax. This mortgage has a fixed rate of 2.07% (2.6% APRC) until 31 August 2030, after this it reverts to 3.59% variable. This mortgage is only available to those moving home and excludes first-time buyers and those wanting to remortgage. The mortgage allows overpayments but up to a set level – if this is exceeded borrowers will face early repayment charges. The Halifax will also accept borrowers up to the age of 80 at the end of the mortgage term.

Moving home mortgages

All the rates available can be found on our moving home chart.

The best mortgage rates for first-time buyers

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

2.75% fixed

Five years

£0[RG1] 

Nationwide Building Society and Barclays continue to offer the best fixed rates for two, three- and five-year fixed rate mortgages for first-time buyers. All of these mortgages accept deposits from as low as 5%. However, at this LTV, buyers will need to wait for a physical valuation to take place. The mortgage from Barclays is their Springboard mortgage. This is a form of guarantor mortgage and requires a family member to provide collateral to secure the mortgage.

Those first-time buyers with a larger deposit of 10% could look for a mortgage at 90% LTV. In addition to finding lower rates at this LTV, borrowers are more likely to find lenders that can use automated routes to value their home and potentially reduce delays. The best 90% LTV mortgage available to first-time buyers is from HSBC at 1.79% (3.3% APRC) to 30 September 2022, after this, it reverts to 3.54% variable. The product fee is £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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