The best residential mortgage deals this week

The best residential mortgage deals this week
Nick Cheek
Written By:
Nick Cheek

In some good news for borrowers, fixed rate mortgages have continued to fall this week following the Bank of England’s decision to pause its hiking cycle.

The average rate of a five-year fixed rate mortgage is now below the 6% mark, yet prices are still significantly higher than they were a year ago.

For those looking to remortgage, it’s now possible to get a five-year fixed rate mortgage for below 5%, with a deal at 4.90% from Virgin Money. For movers, Virgin Money offers a five-year fix at 4.82%.

While fixed rates are coming down, the average Standard Variable Rate (SVR) has risen to 8.18%, up from 8.09% on 1 September 2023. According to data firm Moneyfacts, the SVR is at its highest since 2007.

There are also big differences in the SVR amounts charged by providers, with some of the big high street lenders charging up to 9.49% in interest on their default mortgages.

Here we look at the best rates of the week, with data supplied by Moneyfacts.

The best remortgage rates

Taking top spot this week is Barclays with its two-year remortgage at 5.28%. It is a mortgage with a loan-to-value (LTV) rate of up to 60% and has a fee of £999.

There are also incentives including a free valuation, free legal fees, and £300 cashback.

The next best include:

  1. MPowered Mortgages: A three-year fixed rate mortgage charging 5.40% available on up to 75% LTV. It has a fee of £1,999, a free valuation, and £1,000 cashback.
  2. First Direct: It has reduced its fixed rates this week, including the three-year mortgage at 75% LTV charging 5.49%. It has a fee of £490 and offers a free valuation for all borrowers and free legal fees for those remortgaging.
  3. Virgin Money: A five-year fixed rate mortgage at 5.90% with a 60% LTV. It has a fee of £995 but offers a free valuation and free legal fees.

The best mortgage rates for homemovers

For homemovers the best deal this week is from NatWest with its two-year fixed rate mortgage. It charges 5.34% with an LTV of 60%. There is a fee of £1,495 but it includes a free valuation.

Next in line are:

  1. Mpowered Mortgages: Similar to the above deal, this three-year fixed rate mortgage costs 5.39% and has an LTV of up to 75%. It has a fee of £1,999 but offers a free valuation and £500 cashback.
  2. Barclays: Charges 5.36% for its two-year fixed rate mortgage which can finance up to 60% LTV. It has a fee of £899.
  3. Virgin Money: With its five-year fixed rate deal, movers would pay 4.82% to finance up to 75% LTV. It has a fee of £1,295 and includes a free valuation.

The best first-time buyer mortgages

The best rate for first-time buyers this week is from Virgin Money. Its two-year fixed rate mortgage charges 5.75% and is available with a 10% deposit.

It costs £1,295 in fees but there is a free valuation thrown in.

The next best are the following:

  1. Skipton BS: A mortgage charging 5.24% which is fixed for five years. It requires a 10% deposit and has fees of £2,995.
  2. Skipton BS: There is also a two-year deal available from Skipton BS, which costs 6.19% for an initial two-year fix and then 5.59% for a five-year term. It comes with a fee of £1,495 for the two-year fix and £1,295 for the longer deal. Both include a free valuation.
  3. Yorkshire BS: A two-year deal charging 6.19% which can finance up to 95% of a first home at 6.19%. It also costs £1,495 and comes with a free valuation.