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This week’s best residential mortgage products

This week’s best residential mortgage products
Matt Browning
Written By:
Matt Browning

The mortgage market has well and truly been shaken up, as HSBC dominates the leading offers for borrowers remortgaging, buying for the first time or moving home.

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:

  1. 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).
  2. 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.
  3. 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:

  1. Barclays Mortgage: The lender matches HSBC’s rate and charges a lower fee amount of £899.
  2. 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.
  3. 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:

  1. 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.
  2. 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.
  3. 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.