This week's best residential mortgage rates

Homeowners and first-time buyers are spoilt for choice for when it comes to sub-5% mortgage rates, thanks to another wave of cuts by high-street banks.

Before November, there were no two-year fixes at that landmark price, but now there are over 25 lenders boasting prices below 5%.

Since Nationwide kicked off the sub-5% trend last week, various lenders have followed suit by reducing rates to as low as 4.97%.

Using data from Moneyfacts, we analyse the best deals available to borrowers on the market.

The best remortgage rates

Virgin Money, First Direct and HSBC lead the pack when it comes to two-year fix remortgage rates this week. Each lender is offering 5.14% up to 60% loan to value (LTV) with free valuations but First Direct has the lowest product fee of £490.

The next best:

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1. HSBC: Offers the same rate as First Direct on two-year fixes, but gives borrowers the choice of free valuation or £300 cashback instead. There is also a £999 fee included.
2. Virgin Money: The lender charges £995 in fees and is available through intermediaries.
3. HSBC: Offering the lowest rates for three-year fixes, priced at 5.04% up to 60% LTV, with a £999 fee.

The best rates for home movers

Halifax tops the charts for two-year rates this week, thanks to a 4.97% rate up to 60% LTV which includes a £999 fee. There is an added incentive for homeowners of environmentally-friendly properties too, as homes that rank in an Energy Efficiency Band of A or B will receive £250 cashback.

The other top choices:

1. Virgin Money: The lender offers the same rate as Halifax up to 65% LTV and includes a free valuation with a £1,295 fee.
2. Lloyds Bank: A Moneyfacts’ ‘best buy’ on two-year deals with a rate of 5.21%, plus a £999 fee.
3. HSBC: The best three-year fix is priced at 4.89% up to 60% LTV, and has a £999 fee but a free valuation.

The best rates for first-time buyers

Halifax hoards the top spots in the lenders’ league table for those jumping on the property ladder. Borrowers who have a deposit worth 5% or 10% can enjoy a deal on a two-year fix that includes a £999 product fee and an energy efficient incentive of £250.

The next best offers:

1. Halifax: The five-year alternative is a Moneyfacts’ ‘best buy’ and is priced at 5.35% up to 95% LTV.
2. Lloyds: Also a ‘best buy’, this deal has a rate of 6.35% and is open to buyers with a 5% deposit, doesn’t come with a fee, includes a free valuation and there are no legal fees.
3. Halifax: Borrowers looking for a deal to finance up to 90% of their property should consider the 4.97% deal which includes a £999 fee.