As mortgage rates continue to fluctuate, staying informed is crucial, especially for those in the UK housing market. This week, various changes in mortgage rates have been observed, impacting homemovers, remortgagers, and first-time buyers differently.
This week has seen increases in mortgage rates among leading lenders, including HSBC, first direct, Barclays Mortgage, and MPowered Mortgages. Consequently, most of the lowest rates available for remortgage borrowers and homemovers have experienced an increase. In contrast, rates for first-time buyers have remained more stable, though the market remains challenging for them.
With rates on the rise, according to MoneyFactsCompare, it’s crucial for potential borrowers to actively compare mortgage deals and consider seeking expert advice. While the lowest rate might seem appealing, it’s important to look beyond the headline figures and evaluate the overall true cost of the mortgage, which includes product fees and incentives.
Top Mortgage Deals This Week
Best Deals for Remortgagers
Several attractive offers have emerged this week for those looking to remortgage:
- Santander offers a rate of 4.65% fixed until September 2026, then reverting to 7.50%. This two-year fixed deal is suited for those with a 60% loan-to-value (LTV) ratio and includes a product fee of £999.
- NatWest presents a competitive five-year fixed rate of 4.18% with an APRC of 6.7%. This deal is available for up to a 60% LTV and involves a higher product fee of £1,495 but includes free valuation and legal fees.
These examples underscore the importance of comparing various aspects of mortgage deals, including fees, the fixed period, and the APRC (Annual Percentage Rate of Charge).
Top Choices for Homemovers
Homemovers also have several options to consider:
- Halifax offers a two-year fixed rate of 4.60% with a £999 product fee and a £250 Green Home cashback for properties with a high energy efficiency rating.
- Nationwide has a three-year fixed rate at 4.54% with similar fees and offers additional cashback for moving to an energy-efficient property.
Special Mentions for First-Time Buyers
The market for first-time buyers shows some stability with specific deals:
- Cumberland Building Society provides a two-year fixed rate at 5.07% for a 90% LTV, including a free valuation on properties up to £750,000.
- Halifax stands out with a 5.47% two-year fixed rate for a 95% LTV, also offering significant cashback for energy-efficient homes.
Choosing the Right Mortgage Deal
While the lowest rates are highlighted, it’s essential for borrowers to assess the full implications of any mortgage deal. Factors such as the LTV ratio, product fees, and the duration of the fixed rate should be weighed carefully. A mortgage broker can provide personalised advice, helping to identify the most cost-effective options tailored to individual circumstances.