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Rhiannon Philps

Content Writer
Published: 12/06/2024
house keys in hand

Last updated: 12 June 2024 at 13:15

 

As the number of mortgage products on the market increased month-on-month, leading rates remain stable this week.

 

At the start of June, there were 6,629 mortgage deals for borrowers to choose from, according to data from the Moneyfacts UK Mortgage Trends Treasury Report.

 

This was 1,662 more deals than the previous year and is the highest number since February 2008.

 

But, while product availability rose, deals were on the market for an average of just 15 days, compared to 28 days in May.

 

Lenders can amend and withdraw their mortgage products at any time so, if you find a deal that suits your requirements, you may need to act quickly to secure it.

 

Even though most of the leading deals remain the same as last week, providers will be keeping a close eye on factors such as the Bank of England’s next base rate announcement and the upcoming General Election, which could affect the rates they offer.

 

Below, we provide more information on some of the lowest fixed mortgage rates available to remortgage borrowers, homemovers and first-time buyers. Keep in mind, though, the lowest rate may not always be the most cost-effective choice for your needs and circumstances. That’s why we’ve also provided some alternative deals that feature on our Moneyfacts Best Buy Chart based on their overall true cost.

 

Otherwise, for a complete overview of the mortgage market, visit our charts.

 

Although we’ve highlighted the lowest rates across our mortgage charts, borrowers should always keep in mind that the lowest rate may not be the best, or most cost effective, deal for them. Instead, it is important to consider factors such as product fees and incentives when comparing mortgage deals, as these can have a significant impact on the cost of the mortgage. Consumers unsure of which deal is right for them should consider speaking to a mortgage broker, who will be able to provide advice on the best deal for their circumstances.

The best remortgage rates

  • Hanley Economic BS

    Rate: 4.75% fixed for 2 years before reverting to 8.49%

    Initial period: 2 years

    Product fee: £1,000

    Maximum loan-to-value: 80%

    APRC: 8.1%

    Representative example: £178,000 mortgage over 25 years initially at 4.75% fixed for 24 months reverting to 8.49% variable for term. 24 monthly payments of £1014.81 and 276 monthly payments of £1404.92. Total amount payable £413,588.36 includes loan amount, interest of £234,113, valuation fees of £0 and product fees of £1000. The overall cost for comparison is 8.1% APRC representative.

  • MPowered Mortgages

    Rate: 4.49% fixed for 3 years before reverting to 8.74%

    Initial period: 3 years 

    Product fee: £999

    Maximum loan-to-value: 60%

    APRC: 7.8%

    Representative example: £178,000 mortgage over 25 years initially at 4.49% fixed for 36 months reverting to 8.74% variable for term. 36 monthly payments of £988.37 and 264 monthly payments of £1414.36. Total amount payable £410,451.36 includes loan amount, interest of £230,972, valuation fees of £0 and product fees of £999. The overall cost for comparison is 7.8% APRC representative.

  • NatWest

    Rate: 4.32% fixed until 30 September 2029 before reverting to 8.24%

    Initial period: 5 years 

    Product fee: £1,495

    Maximum loan-to-value: 60%

    APRC: 6.8%

    Representative example: £178,000 mortgage over 25 years initially at 4.32% fixed for 63 months reverting to 8.24% variable for term. 63 monthly payments of £971.28 and 237 monthly payments of £1323.56. Total amount payable £376,749.36 includes loan amount, interest of £196,874, valuation fees of £0 and product fees of £1495. The overall cost for comparison is 6.8% APRC representative.

Hanley Economic BS continues to offer the lowest two-year fixed rate for remortgages at 4.75%. This deal features as a Moneyfacts Best Buy and can finance up to 80% loan-to-value (LTV), which is a larger proportion than many other deals at a similar rate. It charges a £1,000 arrangement fee and offers a free valuation as an incentive. While borrowers in England, Wales and mainland Scotland can apply for this deal, only those in England and Wales can receive the extra perk of free legal fees (up to £250).

 

For a two-year fix with a smaller product fee, first direct offers a deal at 4.98% that can finance up to 75% of your property. Featuring as a Moneyfacts Best Buy, this deal charges a £490 booking fee and offers a free valuation and free legal fees as additional perks. Borrowers across Great Britain and Northern Ireland can apply for this deal directly from first direct.

 

The lowest three-year fixed rate for remortgages comes from MPowered Mortgages for another week. This deal, which is available via intermediaries, charges a rate of 4.49% and a £999 arrangement fee and has a maximum LTV of 60%. Borrowers in England and Wales can apply for this deal and, as extra incentives, they can receive a free valuation and £180 towards their legal costs.

 

If you need to finance a larger proportion of your property, you could consider a Moneyfacts Best Buy deal from Vernon BS. This three-year fix charges a rate of 4.79% and a £499 arrangement fee and has a maximum LTV of 80%. However, it doesn’t come with any extra incentives. Borrowers in England and Wales can apply for this deal from Vernon BS directly or via selected intermediaries.

 

After Barclays Mortgage increased a selection of its fixed rates this week, NatWest now stands alone in offering the lowest five-year fixed remortgage rate. Charging a rate of 4.32%, this online-only deal is available to borrowers in Great Britain and Northern Ireland and offers a free valuation and free legal fees as extra perks. It can finance up to 60% LTV, but borrowers should note that the deal comes with a sizeable booking fee of £1,495.

 

Borrowers in England and Wales that would prefer a remortgage deal without any additional fees could consider a five-year fix from Vernon BS at 4.79%. This deal, which features as a Moneyfacts Best Buy can finance up to 80% of your property and is available from Vernon BS directly or through selected intermediaries.

 

Compare remortgages

The best mortgage rates for homemovers

  • Halifax

    Rate: 4.78% fixed to 31 August 2026 before reverting to 8.74%

    Initial period: 2 years

    Product fee: £999

    Maximum loan-to-value: 60%

    APRC: 8.2%

    Representative example: £218,000 mortgage over 25 years initially at 4.78% fixed for 26 months reverting to 8.74% variable for term. 26 monthly payments of £1246.62 and 274 monthly payments of £1752.38. Total amount payable £513,713.24 includes loan amount, interest of £294,564, valuation fees of £100 and product fees of £999. The overall cost for comparison is 8.2% APRC representative.

  • MPowered Mortgages

    Rate: 4.59% fixed for 3 years before reverting to 8.74%

    Initial period: 3 years 

    Product fee: £999

    Maximum loan-to-value: 60%

    APRC: 7.8%

    Representative example: £218,000 mortgage over 25 years initially at 4.59% fixed for 36 months reverting to 8.74% variable for term. 36 monthly payments of £1222.88 and 264 monthly payments of £1733.89. Total amount payable £502,919.64 includes loan amount, interest of £283,771, valuation fees of £0 and product fees of £999. The overall cost for comparison is 7.8% APRC representative.

  • Santander

    Rate: 4.28% fixed until 2 November 2029 before reverting to 7.50%

    Initial period: 5 years 

    Product fee: £999

    Maximum loan-to-value: 60%

    APRC: 6.3%

    Representative example: £218,000 mortgage over 25 years initially at 4.28% fixed for 64 months reverting to 7.50% variable for term. 64 monthly payments of £1184.65 and 236 monthly payments of £1532.04. Total amount payable £438,653.04 includes loan amount, interest of £219,379, valuation fees of £0 and product fees of £999. The overall cost for comparison is 6.3% APRC representative.

The lowest two-year fixed rate for homemovers comes from Halifax once again at 4.78%. This deal can finance up to 60% of your new property purchase, charges a £999 arrangement fee and is available to borrowers in Great Britain and Northern Ireland. Those moving to an energy-efficient home may find this deal particularly appealing as it offers a £250 Green Home cashback if the property has an Energy Efficiency Rating of 81 or higher.

 

Alternatively, Santander offers a Moneyfacts Best Buy deal at 5.08% that can finance up to 75% of your new home. Furthermore, this two-year fix doesn’t charge any additional product fees and offers a free valuation as an incentive.

 

MPowered Mortgages continues to offer the lowest three-year fixed rate for homemovers at 4.59%. With a maximum LTV of 60% and a £999 arrangement fee, this deal comes with the extra perk of a free valuation. Borrowers in England and Wales are eligible to apply for this deal via intermediaries.

 

Moving home can be expensive so, if you’re looking for a three-year fix without any product fees, The Co-operative Bank offers a deal at 4.85%. It has a maximum LTV of 60% and, as well as not charging any product fees, this deal also offers a free valuation and £500 cashback. This deal features as a Moneyfacts Best Buy and is available to borrowers in Great Britain.

 

Homemovers wanting to fix for longer may be pleased to see the lowest five-year fixed rate fall slightly this week after Santander made rate cuts to a number of its fixed deals. This provider now offers the deal with the lowest rate at 4.28%, which can finance up to 60% LTV and charges a £999 arrangement fee. Available across Great Britain and Northern Ireland, the deal offers a free valuation as an incentive and features as a Moneyfacts Best Buy.

 

For a deal with a higher LTV, Barclays Mortgage offers a Moneyfacts Best Buy at 4.53% that can finance up to 75% of your property. This five-year fix, which is available in Great Britain and Northern Ireland, charges an arrangement fee of £899 and offers a free valuation as an extra perk.

 

Compare moving home mortgages

The best first-time buyer mortgages

  • Clydesdale Bank

    Rate: 5.19% fixed until 31 August 2026 before reverting to 9.49%

    Initial period: 2 years 

    Product fee: £1,499

    Maximum loan-to-value: 90%

    APRC: 9.0%

    Representative example: £168,000 mortgage over 25 years initially at 5.19% fixed for 26 months reverting to 9.49% variable for term. 26 monthly payments of £1000.80 and 274 monthly payments of £1434.80. Total amount payable £421,063.00 includes loan amount, interest of £251,156, valuation fees of £163 and product fees of £1499. The overall cost for comparison is 9.0% APRC representative.

  • first direct

    Rate: 4.78% fixed for 5 years before reverting to 6.99%

    Initial period: 5 years 

    Product fee: £490

    Maximum loan-to-value: 90%

    APRC: 6.2%

    Representative example: £168,000 mortgage over 25 years initially at 4.78% fixed for 60 months reverting to 6.99% variable for term. 60 monthly payments of £960.70 and 240 monthly payments of £1148.78. Total amount payable £333,889.20 includes loan amount, interest of £165,349, valuation fees of £0 and product fees of £490. The overall cost for comparison is 6.2% APRC representative.

  • Hanley Economic BS

    Rate: 5.32% fixed for 2 years before reverting to 8.49%

    Initial period: 2 years 

    Product fee: N/A

    Maximum loan-to-value: 95%

    APRC: 8.1%

    Representative example: £168,000 mortgage over 25 years initially at 5.32% fixed for 24 months reverting to 8.49% variable for term. 24 monthly payments of £1013.69 and 276 monthly payments of £1330.65. Total amount payable £391,732.96 includes loan amount, interest of £223,588, valuation fees of £0 and product fees of £0. The overall cost for comparison is 8.1% APRC representative.

  • Family Building Society

    Rate: 5.09% fixed until 31 October 2029 before reverting to 8.44%

    Initial period: 5 years 

    Product fee: £599

    Maximum loan-to-value: 95%

    APRC: 7.2%

    Representative example: £168,000 mortgage over 25 years initially at 5.09% fixed for 64 months reverting to 8.44% variable for term. 64 monthly payments of £990.94 and 236 monthly payments of £1283.50. Total amount payable £367,275.16 includes loan amount, interest of £198,326, valuation fees of £175 and product fees of £599. The overall cost for comparison is 7.2% APRC representative.

First-time buyers searching for deals that can finance up to 90% LTV will find that Clydesdale Bank continues to offer the lowest two-year fixed rate at 5.19%. This deal is available across Great Britain and borrowers can apply for it via intermediaries. However, despite the competitive rate, it’s worth noting that this deal charges a sizeable arrangement fee of £1,499 and doesn’t offer any extra incentives.

 

As an alternative, first-time buyers in Great Britain and Northern Ireland with a 10% deposit could consider a two-year fix from first direct that doesn’t charge any product fees. It charges a rate of 5.48% and comes with the perk of a free valuation.

 

For a longer fix, first direct offers the lowest five-year fixed rate on deals with a maximum LTV of 90% at 4.78%. Borrowers in Great Britain and Northern Ireland can apply for this deal from the provider directly, which charges a £499 booking fee and offers a free valuation as an extra incentive.

 

If your new home is particularly energy-efficient, you could look at deals with a “green” incentive. For example, Nationwide BS offers a five-year fix at 4.90% with a maximum LTV of 90% that offers £250 cashback on properties with an Energy Efficiency rating between 86 and 91, or £500 cashback on those with a rating of 92 or higher. This deal charges a £999 fee and comes with a free valuation. It’s available across Great Britain and Northern Ireland, excluding the Scilly Isles.

 

As for deals that can finance up to 95% LTV, Hanley Economic BS continues to offer the lowest two-year fixed rate at 5.32%. This deal, which is available to first-time buyers in England, Wales and mainland Scotland, doesn’t charge any additional product fees, which could appeal to those aiming to minimise their upfront costs. It also comes with a free valuation on properties valued up to £250,000, or £310 towards valuation costs if your property is valued above this threshold. Taken as a whole, this deal features as a Moneyfacts Best Buy.

 

Getting on the property ladder can be expensive, so mortgage deals with cashback may be appealing to first-time buyers with a 5% deposit. The Co-operative Bank offers a two-year fix at 5.66% that comes with £250 cashback and a free valuation as extra incentives, but borrowers will be charged a £999 arrangement fee. This deal is available across Great Britain.

 

As it has done for many weeks now, Family Building Society offers the lowest five-year fixed rate for first-time buyers with a 5% deposit. This deal charges a rate of 5.09% alongside a £599 completion fee and is available to borrowers in England and Wales (excluding the Scilly Isles). As extra perks, borrowers can receive a free valuation on properties worth up to £500,000 as well as £250 cashback. Note that, as this deal is a family mortgage, first-time buyers will need a family member who is willing to use their own savings or property as security.

 

Alternatively, first-time buyers with a 5% deposit could consider a Moneyfacts Best Buy five-year fixed deal from Cumberland BS. It charges a rate of 5.23% but comes without any additional product fees, which can be appealing to those looking to minimise upfront costs. It also offers a free valuation on properties up to £750,000. Note that this deal is available across Great Britain, excluding London and south-east England.

 

Compare first-time buyer mortgages

Should I speak to a mortgage broker?

Mortgage brokers remove a lot of the paperwork and hassle of getting a mortgage, as well as helping you access exclusive products and rates that aren’t available to the public. Mortgage brokers are regulated by the Financial Conduct Authority (FCA) and are required to pass specific qualifications before they can give you advice.

 

Speak to an award-winning mortgage broker today

 

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