Moneyfactscompare.co.uk will never contact you by phone to sell you any financial product. Any calls like this are not from Moneyfacts. Emails sent by Moneyfactscompare.co.uk will always be from news@moneyfacts-news.co.uk. Be Scamsmart.

Advertisement

Image of Rhiannon Philps

Rhiannon Philps

Content Writer
Published: 21/02/2024
wooden model house in hands

Last updated: 21 February 2024 at 15:30

Leading fixed-rate mortgages increase from last week as more providers raise rates.

This week saw a fair amount of change in the mortgage market as many providers started to increase their rates. Unfortunately for anyone looking for a mortgage, this means that the majority of the leading fixed rates are now higher than they were last week.

Despite this, there are still some competitive deals to be found, including several fixed rate mortgages that come without any product fees and offer several perks such as a free valuation and cashback.

Below, we identify some of the lowest mortgage rates available for different types of buyers. But, as the lowest rate doesn’t necessarily make a mortgage product the best or most cost-effective for you, we’ve also identified some alternatives, including providers that appear on our Moneyfacts Best Buy charts.

For a wider overview of the mortgage market, take a look at 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

  • Cumberland BS

    Rate: 4.48% fixed until 2 May 2026 before reverting to 8.24%

    Initial period: 2 years

    Product fee: £999

    Maximum loan-to-value: 60%

    APRC: 7.8%

    Representative example: £178,000 mortgage over 25 years initially at 4.48% fixed for 26 months reverting to 8.24% variable for term. 26 monthly payments of £987.36 and 274 monthly payments of £1372.30. Total amount payable £403,210.56 includes loan amount, interest of £223,682, valuation fees of £0 and product fees of £999. The overall cost for comparison is 7.8% APRC representative.

  • MPowered Mortgages

    Rate: 4.36% fixed for 3 years before reverting to 8.74%

    Initial period: 3 years 

    Product fee: £1,999

    Maximum loan-to-value: 60%

    APRC: 7.9%

    Representative example: £178,000 mortgage over 25 years initially at 4.36% fixed for 36 months reverting to 8.74% variable for term. 36 monthly payments of £975.29 and 264 monthly payments of £1412.53. Total amount payable £410,497.36 includes loan amount, interest of £230,018, valuation fees of £0 and product fees of £1999. The overall cost for comparison is 7.9% APRC representative.

  • HSBC

    Rate: 3.99% fixed until 30 April 2029 before reverting to 6.99%

    Initial period: 5 years 

    Product fee: £999

    Maximum loan-to-value: 60%

    APRC: 5.9%

    Representative example: £178,000 mortgage over 25 years initially at 3.99% fixed for 62 months reverting to 6.99% variable for term. 62 monthly payments of £938.57 and 238 monthly payments of £1198.98. Total amount payable £345,022.58 includes loan amount, interest of £165,549, valuation fees of £0 and product fees of £999. The overall cost for comparison is 5.9% APRC representative.

Despite recently increasing its rates, Cumberland BS still offers the lowest two-year fix this week for borrowers looking to remortgage. It charges 4.48% and a £999 arrangement fee and can finance up to 60% of your property’s value. In terms of incentives, this deal offers borrowers a free valuation for properties worth up to £750,000 and free legal fees.

If you’re looking for a remortgage deal with a higher loan-to-value (LTV), Halifax offers a deal with a maximum LTV of 75% at a slightly higher rate of 4.63%. It charges a £999 arrangement fee and comes with a free valuation and free legal fees, as well as a green home cashback of £250 if your property has an Energy Efficiency rating of 81 or higher.

Spending another week as the provider with the lowest three-year fixed remortgage deal is MPowered Mortgages with a rate of 4.36%. Available to borrowers in England and Wales looking to finance up to 60% LTV, you can apply for this deal via intermediaries. Borrowers need to pay a hefty arrangement fee of £1,999, but they can also benefit from a range of incentives, including a free valuation, free legal fees and cashback worth 0.30% of the mortgage advance.

Alternatively, Vernon BS offers a three-year fix with a lower upfront cost and a higher maximum LTV of 80%. It charges a rate of 4.59% and an arrangement fee of £499 and, while it doesn’t offer any extra incentives, this deal features as a Moneyfacts Best Buy.

HSBC offers the lowest five-year fix for remortgage borrowers looking for a longer deal. Charging 3.99%, this deal has a £999 arrangement fee and can finance a maximum LTV of 60%. It also offers borrowers a free valuation and a choice of £300 cashback or free legal fees.

If you’d prefer a deal without any upfront arrangement fees, first direct offers a five-year fix at 4.24% with a maximum LTV of 60%. This also comes with the perks of a free valuation and free legal fees.

Compare remortgages

The best mortgage rates for homemovers

  • HSBC

    Rate: 4.39% fixed until 30 April 2026 before reverting to 6.99%

    Initial period: 2 years

    Product fee: £999

    Maximum loan-to-value: 60%

    APRC: 6.7%

    Representative example: £218,000 mortgage over 25 years initially at 4.39% fixed for 26 months reverting to 6.99% variable for term. 26 monthly payments of £1198.14 and 274 monthly payments of £1514.78. Total amount payable £447,345.36 includes loan amount, interest of £228,201, valuation fees of £0 and product fees of £999. The overall cost for comparison is 6.7% APRC representative.

  • Barclays Mortgage

    Rate: 4.39% fixed until 31 March 2026 before reverting to 8.74%

    Initial period: 2 years

    Product fee: £899

    Maximum loan-to-value: 60%

    APRC: 8.1%

    Representative example: £218,000 mortgage over 25 years initially at 4.39% fixed for 25 months reverting to 8.74% variable for term. 25 monthly payments of £1198.14 and 275 monthly payments of £1749.30. Total amount payable £512,040.00 includes loan amount, interest of £293,011, valuation fees of £0 and product fees of £899. The overall cost for comparison is 8.1% APRC representative.

  • MPowered Mortgages

    Rate: 4.27% fixed for 3 years before reverting to 8.74%

    Initial period: 3 years 

    Product fee: £1,999

    Maximum loan-to-value: 60%

    APRC: 7.8%

    Representative example: £218,000 mortgage over 25 years initially at 4.27% fixed for 36 months reverting to 8.74% variable for term. 36 monthly payments of £1183.43 and 264 monthly payments of £1728.38. Total amount payable £501,044.80 includes loan amount, interest of £280,896, valuation fees of £0 and product fees of £1999. The overall cost for comparison is 7.8% APRC representative.

  • HSBC

    Rate: 3.99% fixed until 30 April 2029 before reverting to 6.99%

    Initial period: 5 years 

    Product fee: £999

    Maximum loan-to-value: 60%

    APRC: 5.9%

    Representative example: £218,000 mortgage over 25 years initially at 3.99% fixed for 62 months reverting to 6.99% variable for term. 62 monthly payments of £1149.48 and 238 monthly payments of £1468.42. Total amount payable £421,895.72 includes loan amount, interest of £202,752, valuation fees of £0 and product fees of £999. The overall cost for comparison is 5.9% APRC representative.

After Santander increased its rates, HSBC and Barclays Mortgage now jointly offer the lowest two-year fixed mortgage for homemovers at 4.39%. With a maximum LTV of 60% and a booking fee of £999, HSBC’s deal also offers a free valuation.

The deal from Barclays Mortgage also has a maximum LTV of 60% and offers a free valuation, but it charges a lower arrangement fee of £899. It’s available from Barclays directly or via intermediaries.

If your new home is particularly energy-efficient, you could consider a two-year fix from Nationwide BS with a maximum LTV of 75%. This charges a higher rate of 4.54% and a higher upfront fee of £1,499, but borrowers could get £250 cashback if their property has an Energy Efficiency rating between 86 and 91, or £500 cashback if the rating is 92 or higher.

As with remortgages, MPowered Mortgages offers the lowest three-year fix for homemovers in England and Wales. It charges a rate of 4.27% and a sizeable arrangement fee of £1,999. Borrowers can use the deal to finance up to 60% LTV and can benefit from a couple of incentives, including a free valuation and cashback worth 0.30% of your mortgage advance.

If you would prefer a deal with a lower upfront cost, Coventry BS has a three-year fix at 4.39% with a lower arrangement fee of £999. It can finance a slightly higher LTV of 65% and also comes with a free valuation.

In addition to the lowest two-year fixed rates, HSBC also offers the lowest five-year fixed mortgage deal at 3.99%. This deal, which is a Moneyfacts Best Buy, comes with a £999 booking fee and offers a free valuation. Homemovers can use this deal to finance up to 60% of their new property purchase.

Alternatively, first direct offers a five-year fix with a lower booking fee of £490. It charges 4.04%, offers a free valuation and can finance up to 60% LTV.

Compare moving home mortgages

The best first-time buyer mortgages

  • HSBC

    Rate: 4.89% fixed until 30 April 2026 before reverting to 6.99%

    Initial period: 2 years 

    Product fee: £999

    Maximum loan-to-value: 90%

    APRC: 6.8%

    Representative example: £168,000 mortgage over 25 years initially at 4.89% fixed for 26 months reverting to 6.99% variable for term. 26 monthly payments of £971.37 and 274 monthly payments of £1171.43. Total amount payable £347,371.44 includes loan amount, interest of £178,227, valuation fees of £0 and product fees of £999. The overall cost for comparison is 6.8% APRC representative.

  • HSBC

    Rate: 4.48% fixed until 30 April 2029 before reverting to 6.99%

    Initial period: 5 years 

    Product fee: £999

    Maximum loan-to-value: 90%

    APRC: 6.1%

    Representative example: £168,000 mortgage over 25 years initially at 4.48% fixed for 62 months reverting to 6.99% variable for term. 62 monthly payments of £931.89 and 238 monthly payments of £1141.57. Total amount payable £330,614.84 includes loan amount, interest of £161,471, valuation fees of £0 and product fees of £999. The overall cost for comparison is 6.1% APRC representative.

  • Newcastle BS

    Rate: 5.20% fixed until 30 June 2026 before reverting to 6.94%

    Initial period: 2 years 

    Product fee: £999

    Maximum loan-to-value: 95%

    APRC: 6.8%

    Representative example: £168,000 mortgage over 25 years initially at 5.20% fixed for 28 months reverting to 6.94% variable for term. 28 monthly payments of £1001.79 and 272 monthly payments of £1167.90. Total amount payable £347,162.92 includes loan amount, interest of £177,719, valuation fees of £265 and product fees of £999. The overall cost for comparison is 6.8% APRC representative.

  • Family Building Society

    Rate: 4.79% fixed until 30 June 2029 before reverting to 8.44%

    Initial period: 5 years 

    Product fee: £599

    Maximum loan-to-value: 95%

    APRC: 7.0%

    Representative example: £168,000 mortgage over 25 years initially at 4.79% fixed for 64 months reverting to 8.44% variable for term. 64 monthly payments of £961.67 and 236 monthly payments of £1276.89. Total amount payable £363,841.92 includes loan amount, interest of £194,893, valuation fees of £175 and product fees of £599. The overall cost for comparison is 7.0% APRC representative.

The lowest rates for first-time buyers saw some change this week, with HSBC now offering the lowest rates for borrowers with a 10% deposit. Its two-year fixed mortgage charges 4.89% while its five-year fix charges a lower rate of 4.48%, both of which feature as Moneyfacts Best Buys. Both deals also charge a £999 booking fee and offer a free valuation and a cashback of £250 (two-year fix) or £500 (five-year fix).

Alternatively, there are some two- and five-year fixes for buyers with a 10% deposit that don’t charge any product fees. Coventry BS offers a two-year fix at a rate of 5.18%, which also offers the extra incentives of a free valuation and £500 cashback.

Also charging no product fees is the five-year fix from Virgin Money, which is available via intermediaries. Charging 4.62%, this deal offers £500 cashback as an incentive which could help first-time buyers with the cost of moving house.

Only have a 5% deposit? Newcastle BS offers a two-year fix at 5.20% with a maximum LTV of 95%. It charges a £999 arrangement fee and doesn’t offer any extra incentives.

For a deal with more incentives, Coventry BS offers a two-year fix with a maximum of 95% LTV. It charges a slightly higher rate of 5.50% but borrowers won’t need to pay any additional product fees. Furthermore, this deal also offers a free valuation and £500 cashback, all of which means it appears as a Moneyfacts Best Buy.

Family Building Society once again offers the lowest five-year fixed rate for first-time buyers with a 5% deposit. With a rate of 4.79%, this deal is a family mortgage, which means the family of first-time buyers can help them get on the property ladder by using their own savings or property as security.

Borrowers will need to pay a £599 completion fee and can benefit from a free valuation for properties worth up to £500,000, as well as £250 cashback. This deal is available to first-time buyers in England and Wales (excluding the Scilly Isles).

Alternatively, if you’re looking for a longer fix, Leeds BS offers a Moneyfacts Best Buy five-year fix at a slightly higher rate of 4.84%. It charges a £999 arrangement fee but offers a free valuation to borrowers.

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

 

MAB is the preferred mortgage broker of MoneyfactsCompare

 

Mortgage Advice Bureau logo

Get friendly, expert advice free of charge as a visitor of MoneyfactsCompare

Mortgage Advice Bureau have 1,600 UK advisers with 200 awards between them.

Speak to an award-winning mortgage broker today.

Call 0808 149 9177 or request a callback

Mortgage Advice Bureau offers fee free mortgage advice for MoneyfactsCompare visitors that call on 0808 149 9177. If you contact Mortgage Advice Bureau outside of these channels you may incur a fee of up to 1%. Lines are open Monday to Friday 8am to 8pm and Saturday 9am to 1pm excluding bank holidays. Calls may be recorded.

Your home may be repossessed if you do not keep up repayments on your mortgage.

Other mortgage stories

news icon
More mortgage deals on the market but rates continue to rise

8th March 2021

Those looking to capitalise on the stamp duty holiday extension will welcome the news that there is now the highest number of mortgage deals on the market since March 2020

Those looking to capitalise on the stamp duty holiday extension will welcome news that there is now the highest number of deals on the market since March 2020

Read More
news icon
Mortgage rates hit five-year high as lenders react to three base rate hikes

11th April 2022

Average interest rates on mortgages are at a five-year high, new data reveals, as mortgage lenders price in three back-to-back base rate rises from the Bank of England. The Moneyfacts UK Mortgage Trends Treasury Report has found that the average rate on a two-year fixed-rate mortgage is now 2.86%, the highest level seen since 2015. This is an increase from 2.58% this time last year.

Average interest rates on mortgages are at a five-year high, new data reveals, as mortgage lenders price in three back-to-back base rate rises.

Read More
news icon
House prices fall for second time in three months

7th October 2022

UK house prices decreased 0.1% in the month of September, according to Halifax, Britain’s largest mortgage lender. The drop means that the average house price has fallen in two of the past three consecutive months.

UK house prices decreased 0.1% in the month of September, according to Halifax, Britain’s largest mortgage lender.

Read More
Disclaimer

Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time. Links to third parties on this page are paid for by the third party. You can find out more about the individual products by visiting their site. Moneyfactscompare.co.uk will receive a small payment if you use their services after you click through to their site. All information is subject to change without notice. Please check all terms before making any decisions. This information is intended solely to provide guidance and is not financial advice. Moneyfacts will not be liable for any loss arising from your use or reliance on this information. If you are in any doubt, Moneyfacts recommends you obtain independent financial advice.

Cookies

Moneyfactscompare.co.uk will, like most other websites, place cookies onto your device. This includes tracking cookies.

I accept. Read our Cookie Policy

Moneyfactscompare.co.uk will never contact you by phone to sell you any financial product. Any calls like this are not from Moneyfacts. Emails sent by Moneyfactscompare.co.uk will always be from news@moneyfacts-news.co.uk. Be ScamSmart.

Moneyfactscompare.co.uk will never contact you by phone to sell you any financial product. Any calls like this are not from Moneyfacts. Emails sent by Moneyfactscompare.co.uk will always be from news@moneyfacts-news.co.uk. Be ScamSmart.