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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 tide has turned on the direction of rates with residential mortgage products recently, as providers once again bumped up rates for borrowers.

An average two-year fixed residential mortgage rate is 5.76%, which has even crept up 0.01% since yesterday.

If you are looking for a longer-term deal, the average five-year fix is priced at 5.34%, which also rose by the same amount since the previous working day, according to Moneyfacts data.

While rates are rising, it is all the more important to bag a competitive rate, so here are the current best residential mortgage products, using data from the comparison site.

The best remortgage rates

Halifax reigns supreme for two-year fixes with a rate of 4.52% up to 60% 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).

The next in line:

  1. Barclays Mortgage: The Moneyfacts ‘best buy’ two-year fix is priced at 4.81% to finance up to 60% LTV. There are no product fees to pay for and plenty of incentives too, which include free legal fees, complementary valuation, and £150 cashback.
  2. MPowered Mortgages: This three-year fix is still the lowest rate around, priced at 4.36% up to 60% LTV. Perks come in the form of free valuation and legal fees, plus a 0.3% mortgage advance cashback. However, there is a bulky arrangement charge of £1,999.
  3. NatWest: The provider offers the lowest five-year fix for borrowers looking to remortgage, with a rate of 4.2% up to 60% LTV. Another deal with a considerable booking fee, which comes to £1,495, but there are also free valuation and free legal fees as part of the package.

The best remortgage rates for homemovers

Barclays Mortgage has nudged HSBC off of the leading two-year fix market perch, offering a rate of 4.39% up to 60% LTV for homemovers. Last week’s joint-top account has a £899 arrangement fee to pay, while a free valuation is also available.

Other top choices:

  1. MPowered Mortgages: This specialist lender remains the lowest three-year alternative, paying 4.27% to finance up to 60% of your property. A £1,999 fee is required on this, but so is a free valuation and cashback (worth 0.3% of your mortgage advance).
  2. Yorkshire Building Society: The mutual offers a slightly higher rate of 4.49% for up to 75% LTV, making this a Moneyfacts ‘best buy’. There is a smaller fee than MPowered Mortgages to pay – a £1,495 completion fee.
  3. Barclays Mortgage: No other lender can beat the Moneyfacts ‘best buy’ rate of 4.09% from this provider. While a £899 arrangement fee needs to be paid for this deal that finances up to 60%, you also receive a free valuation.

The best first-time buyer mortgages

HSBC continues to offer the best deals for borrowers with a 10% deposit jumping onto the property ladder this week, with its two-year fix for 4.99%. It requires a £999 fee for booking costs, and a free valuation with cashback of £250 are also included.

The best of the rest:

  1. HSBC: The lowest five-year market is priced at 4.58% and comes with a £999 booking fee. This is one if you have a 10% deposit and like a free valuation and cashback worth £500.
  2. Halifax: Thanks to a 5.15% rate and a green incentive, this deal is another Moneyfacts ‘best buy’ for first-time buyers with a 5% deposit. You’ll need to pay a £999 arrangement fee if you choose this offer, while there are benefits if you have an environmentally friendly property. The provider offers a £250 Green Home cashback if your home has an energy-efficiency rating of 81 or higher.
  3. Family Building Society: For the last three weeks, the mutual’s offer of 4.79% for five years to buyers with a 10% deposit is the most attractive on the market. Fees include a £599 completion cost and incentives come in the shape of a free valuation worth up to £500,000, as well as £250 cashback.The benefit of opting for this mutual is that funds from relatives can be added to your pot, meaning relatives of first-time buyers can add their own savings or property as security.Although, this offer is only available for property buyers in England and Wales (excluding the Scilly Isles).