It is thanks to the big banks that consistently hiked up rates and is for the first time in over six months.
While seeing many sub-4% rates on the market might be a thing of the past, we’ve rounded up the leading ones available.
Using data from Moneyfacts, here is a round-up of the best residential mortgage products.
The best remortgage rates
Although Cumberland Building Society hiked its rates, the mutual still provides the best two-year remortgage rate on the market at 4.48% up to 60% loan to value (LTV). Last week’s leading deal still has a £999 arrangement fee, plus the same incentives (free legal fees and free valuation up to £750,000).
The next best:
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- Halifax: The provider enters the frame for two-year fixes with a rate of 4.63% up to 75% LTV. The deal comes with a £999 arrangement charge but also a free valuation and zero fees. Cashback worth £250 is also on offer for greener homes (with an energy-efficiency rating of 81 and above).
- MPowered Mortgages: Keeping the top spot for another week with a 4.36% rate up to 60% LTV. A sizeable charge for arranging is included £1,999, but so are free legal fees and valuation. Also, the specialist lender offers cashback worth 0.3% of the borrower’s mortgage advance.
- HSBC: The high-street lender replaces NatWest in the five-year fix market due to its 3.99% rate. Borrowers will need to pay a £999 arrangement fee up to 60% LTV, but a choice of incentives are also available. They include a free valuation and a selection of either £300 cashback or complementary legal fees.
The best remortgage rates for homemovers
HSBC and Barclays Mortgage replaced Santander after it upped rates for its borrowers moving homes. Its two-year fix is priced at 4.39% up to 60% LTV. The deal comes with a booking fee charge for customers, but also a free valuation.
The top alternatives:
- Barclays Mortgage: The lender matches HSBC’s rate and charges a lower fee amount of £899.
- MPowered Mortgages: This provider has a deal of 4.27% to finance up to 60% of your property, while a £1,999 fee is required. A free valuation is included plus a cashback deal worth 0.3% of your mortgage advance.
- HSBC: As well as boasting the top rate for two-year fixes, it has a Moneyfacts ‘best buy’ available for a longer-term deal. A 3.99% rate on this product comes with a complementary valuation and finances up to 60% LTV. However, there’s a £999 booking fee to pay for too.
The best first-time buyer mortgages
HSBC storms the rankings for borrowers this week, leading the pack with the lowest rates for first-time buyers. Its two-year fix for 4.89% is a Moneyfacts ‘best buy’, with a £999 fee required to cover booking costs, but a free valuation and cashback of £250 are also included.
The next best:
- HSBC: The lender also tops the rankings for rates in the five-year market with its product priced at 4.48%. This offer mirrors the two-year deal and is also considered a ‘best buy’ by Moneyfacts.
- Newcastle Building Society: Priced at 5.2%, this two-year fix is ideal for borrowers with a 5% deposit in the bank. It needs a £999 arrangement fee to be paid, while no other incentives are included.
- Family Building Society: This mutual continues to offer the lowest price (4.79%) for five years for buyers with a 10% deposit. One perk of this account is that funds from relatives can be considered, so the relatives of first-time buyers can add their own savings or property as security.
The deal is only on offer in England or Wales (excluding the Scilly Isles), and fees include a £599 completion cost, but incentives come in the shape of a complementary valuation worth up to £500,000, as well as £250 cashback.
