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This week’s best residential mortgage products

This week’s best residential mortgage products
Matt Browning
Written By:
Matt Browning
Posted:
01/02/2024
Updated:
01/02/2024

Lenders have shifted their approach to residential mortgage products, with many removing the best deals, but there is still floods of value in the market.

This week, Barclays introduced a mix of price hikes and rate cuts, meaning a new lender tops the remortgage sector, while most of the market remains unchanged.

One sector that saw a shake-up was the first-time buyer standings, with fresh deals from the mutuals Newcastle and Cumberland.

Using data from Moneyfacts, here are the leading deals on the market for borrowers.

The best remortgage rates

Cumberland Building Society steps into the top spot for a two-year fix with a 4.26% rate up to 60% loan to value (LTV), with a £999 arrangement fee included. Incentives for this deal (for British homes properties only) come in the shape of free legal fees and valuation for homes valued up to £750,000.

The best of the rest:

  1. Furness Building Society: A two-year fix is available up to 80% priced at 4.64%, with an additional £999 arrangement fee. This deal offers a free valuation, plus £250 cashback, making it a Moneyfacts ‘best buy’.
  2. MPowered Mortgages: This is the lowest three-year deal around, priced at 4.36% for a maximum of 60% LTV. The incentives attempting to outweigh the hefty £1,999 arrangement fee on this deal are complementary legal fees, free valuation, and cashback worth 0.30% of your mortgage advance.
  3. Nationwide Building Society: For a longer-term product, this deal is the lowest price among its high-street rivals. The rate is fixed for five years at 3.88% up to 60% LTV. Fees will set you back £999, but a free valuation is included, in addition to a choice of free legal fees or £500 cashback.

The best mortgage rates for home movers

Another lender benefitting from Barclays’ removal of residential mortgage products is Halifax. It now boasts the lowest two-year fix deal at 4.17% to finance a maximum of 60% of your property. A £999 arrangement fee is required to pay, but if you have an energy efficiency rating of at least 81, the lender will give you £250.

The other top options:

  1.  Santander: The lowest rate for three-year fixes alongside Nationwide, it stands at 4.20% for a maximum of 60% LTV. Like many deals this week, it comes with a £999 arrangement fee, although a courtesy valuation is also included.
  2. Nationwide Building Society: The mutual shares the same deal as Santander, but if the property has an energy efficiency rating of 92 or more, you’ll take £500 home (£250 for a rating higher than 86).
  3. Cumberland Society: This deal is priced at 4.08% for five years and is worth considering for borrowers wanting a deal to finance a maximum of 75% of their property. Incentives include free valuation for properties up to £750,000, while a £999 arrangement fee is also added into the mix.

The best first-time buyer mortgages

At the top of the table again for first-time buyers with a 10% to play with is Virgin Money, thanks to its rate of 4.87%. This is despite the considerable upfront fee of £1,295. However, £500 cashback is also available for customers taking advantage of the appealing rate.

The next best:

  1. HSBC: On the other hand, if you want a smaller fee to pay (£999), HSBC’s two-year fix is priced at 4.89% and offers £250 cashback plus a complementary valuation.
  2. Cumberland Building Society: This five-year fix has no product fees to pay, offers a free valuation, and is priced at 4.58%. However, this deal is not available for borrowers outside Great Britain, or those in London or the Southeast of England.
  3. Newcastle Building Society: The mutual has a two-year fix at 5.20% for borrowers with a 5% deposit. There are no incentives and a £999 fee is required to secure the deal.