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This week’s best residential mortgage products

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

There's a sprinkling of new names topping the charts this week for borrowers moving house, buying a first home, or deciding to remortgage..

Coventry Building Society and MPowered Mortgages re-enter the fold, while The Co-operative Bank continues to hold the keys to the best first-time buyer rates.

As 15% more properties are on the market compared to last year, securing the best mortgage possible will be on the minds of millions more UK borrowers than usual.

So to assist potential buyers, YourMoney.com has cast its eye across the best residential mortgage products to seek out, according to Moneyfacts data.

The best remortgage rates

It’s Coventry Building Society’s two-year fixed rate, priced at 4.42% up to 65% loan to value (LTV) which takes the top spot this week with two deals. Both have a fee of £999 for borrowers to pay, while one has a complimentary valuation and no fees, the other offers £350 cashback.

  1. TSB: To refinance 75% of your property, the lender offers 4.54% with a £995 product fee included. Incentives come in the form of a free valuation, with no legal fees, making this a Moneyfacts ‘best buy’.
  2. Santander: A three-year fix rate is available for 4.44% up to 60% LTV, with a £999 fee on top. If you’re in England, Wales or Northern Ireland, a choice between free legal fees and £250 cashback is available, on top of a complimentary valuation. This incentive drops to £95 for borrowers in Scotland. This deal can also be secured through intermediaries.
  3. NatWest: The leading five-year fix rate around is priced at 3.89% up to 60% LTV and incentives are made up of a free valuation and free legal fees.

The best mortgage rates for homemovers

Barclays Mortgage has the best option if you’re moving home, with a market-leading 4.17% rate. The deal offers a free valuation but a £899 fee needs to be paid on this offer which finances up to 60% of your home.

  1. MPowered Mortgages: The lender boasts a couple of options for those in England and Wales, with the lowest three-year fix on the market of 4.37%, which finances up to 60% LTV. Both deals have a free valuation as standard, but one has a £500 cashback incentive (if a minimum of £200,000 is borrowed). This might be one to avoid if you do not wish to pay a product fee, as both come with a £1,999 charge.
  2. Virgin Money: The 3.92% rate from the lender is the lowest five-year fix on the market and can finance up to 60% LTV. It comes with a £1,295 fee to pay but a sizeable £500 cashback is also included as an incentive.
  3. Yorkshire Building Society: This 4.09% deal pays up to 75% of your property. There may be a product fee, but at £495 it is at the lower end of the scale. A free valuation and £250 cashback solidify its credentials as another Moneyfacts’ ‘best buy’.

The best first-time buyer mortgages

Virgin Money has the leading rates this time, boasting the most appealing prices across two and five-year fixed rates for borrowers with a 10% deposit. It stands at 4.87% and 4.38% respectively and prospective homeowners can enjoy £500 cashback, while a £1,295 product fee is part of the package with both rates.

  1. Virgin Money: The lender also has a two-year deal up to 90% LTV for 5.12%. Perks come with no product fees involved, plus a cashback incentive worth £500.
  2. Yorkshire Building Society: For buyers with a 10% deposit, a five-year fixed rate is available for 4.54%. There are product fees, albeit below the average at £495 while a valuation on the house and £250 cashback are also part of the deal.
  3. The Co-operative Bank: The ethical lender has top deals for those with smaller deposits of 5% on both two and five-year fixes. Each has £999 product fees but also comes with a free valuation and £250 cashback, which make these deals a Moneyfacts ‘best buy’. The offers are available through the Co-op’s Intermediaries arm too.