This week’s best mortgage deals

This week’s best mortgage deals
Christina Hoghton
Written By:
Christina Hoghton

Homeowners and homemovers ought to consider Nationwide Building Society when picking a mortgage this week, as the newly revamped mutual is offering deals fit enough for its new stylish rebranding.

With the average mortgage rates for two and five-year fixes tumbling for the second month in a row, and product choice reaching a 15-year high, the outlook is looking brighter for buyers to step on the property ladder.

On average, rates for two and five-year fixes at 95% LTV dropped by 0.17% month-on-month, while pricing fell by around 0.27% at both 90% and 60% LTV too.

In October, the average two-year fixed rate was 6.47% – a drop from 6.7% in September and the average five-year fixed rate also dropped from 6.19% to 5.97%.

Read on for the best rates of the week, with data supplied by Moneyfacts.

The best remortgage rates

Reigning supreme this week is Barclays, which offers the lowest two-year fixed remortgage rate at 5.28%. It can finance a loan-to-value (LTV) of up to 60%, with a £999 product fees but includes a free valuation and the choice between free legal fees or £350 cashback.

The best of the rest include:

  1. First Direct –  A three-year fixed rate at 5.29% which reverts to 6.99% with a maximum loan to value (LTV) of 60%. Includes £490 product fee.
  2. Nationwide – The mutual is also offering a three-year fixed 5.29% rate up to 60% LTV plus a £999 fee but offers a choice of £500 cashback or free legal fees.
  3. First Direct – Offers the lowest five-year fixed rate in the UK at 4.87% up to 60% LTV while product fees are £490.

The best mortgage rates for homemovers

Nationwide boasts some of the lowest rates on the market after making cuts yesterday (11 October) across its two, three and five-year initial term rates. The  60% LTV deals sit at 5.24%, 4.99% and 4.74% respectively. All three terms come with a product fee costing £999 but with an Energy Performance Certificate (EPC) incentive. If your property scores between 92 or more, you could enjoy some cashback to the tune of £500.

The next in line are:

  1. First Direct – The two-year deal at 75% LTV is 5.44% and comes with a booking fee of £490.
  2. Nationwide – This offers a three-year rate at 75% LTV at 5.30% and has a £999 product fee but comes with a free valuation plus its EPC green incentives.
  3. HSBC – It offers a five-year deal up to 85% for 5.14% and has mortgage costs at £999 with a free valuation with £350 cashback.

The best first-time buyer mortgages

The lowest rates for first-time buyers are at Virgin Money as it continues to offer buyers stepping on the property ladder with a 10% deposit the lowest two-year deal. The five-year fixed rate is the lowest on the market too, at 5.22% up to 90% LTV. Its two-year deal has dropped since last week to a lower rate of 5.70%. Both include £1,295 fees as well as a free valuation.

The other best buys this week:

  1. HSBC – The lender is offering incentives in its battle to win over buyers which include, a two-year deal and a five-year deal with at a respective £250 and £500 cashback, plus a free valuation.
    The two-year deal is priced at 5.84%, while the five-year mortgage is offered at a 5.29% rate – both have £999 fees.
  2. Skipton BS – The mutual has the lowest five-year fixed rate around at 5.59% up to 95% LTV and comes with a free valuation and a £1,295 fee.
  3. Yorkshire BS – This has been rated as a Moneyfacts Best Buy due to its free valuation, cashback incentive and lower product fees of £995, on the mutual’s five-year fixed rate of 5.63%.