The lowest fixed rate mortgage deals – what’s on offer

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There’s something of a price war going on at the moment with some lenders offering mortgage deals at record low rates. Find out who’s offering the lowest fixed rate mortgage deals and what’s on offer.

The lowest fixed rate mortgage deals

The recent mortgage war has seen some incredibly low interest rates on offer. I reckon that other mortgage lenders will bring out new deals over the next few weeks, but I’ll update this article to reflect that when I can.

Lowest two year fixed rate mortgages

Yorkshire Building Society: two year fixed rate mortgage charging 0.99% until 31.08.19. It’s available on mortgages up to 60% loan to value. There’s an arrangement fee of £1,495 and a valuation fee of £235. If you don’t remortgage at the end of the deal, you’ll pay the standard variable rate, which is currently 4.74%.

SAVVY TIP: The arrangement fee is a fee you pay for the mortgage to be sorted out. It is normally paid when you complete on the house purchase or remortgage, but sometimes part of the fee is asked for earlier. You can normally get a refund of this if the mortgage doesn’t go through. The valuation fee is for the mortgage lender to value your property.

Halifax: two year fixed rate mortgage charging 1.09% on mortgages up to 60% loan to value. It’s only available to first time buyers, and you must complete the purchase of your property by 30th September 2017. There is a booking fee of £999 and a valuation fee of £565. If you don’t remortgage at the end of the deal, you’ll pay the standard variable rate, which is currently 4.7%.

SAVVY TIP: A booking fee is different to an arrangement fee. A booking fee is used to secure the funds for a fixed rate deal. You may be asked to pay this upfront (although it may be something you can pay when the mortgage goes through). Your lender may not refund it if you don’t go ahead with the mortgage – so it’s worth checking before you apply.

First Direct: two year fixed rate mortgage charging 1.14% on mortgages up to 60% loan to value. There’s a booking fee of £1,450 and a valuation fee of £232. If you don’t remortgage at the end of the deal, you’ll pay the standard variable rate, which is currently 3.69%.

Chelsea Building Society: two year fixed rate mortgage charging 1.17% on mortgages up to 75% loan to value. There’s an arrangement fee of £1,695 and a valuation fee of £235. If you don’t remortgage at the end of the deal, you’ll pay the standard variable rate, which is currently 4.74%.

Yorkshire Building Society: two year fixed rate mortgage charging 1.18% until 31.08.19. It’s available on mortgages up to 75% loan to value. There’s an arrangement fee of £995 and a valuation fee of £235. If you don’t remortgage at the end of the deal, you’ll pay the standard variable rate, which is currently 4.74%.

HSBC: two year fixed rate mortgage charging 1.19%. It’s available on mortgages up to 75% loan to value. There’s a booking fee of £99 and an arrangement fee of £900. If you don’t remortgage at the end of the deal you’ll pay the standard variable rate, which is currently 3.69%.

Chelsea Building Society: two year fixed rate mortgage charging 1.88% on mortgages up to 90% loan to value. There’s an arrangement fee of £1,695 and a valuation fee of £235. If you don’t remortgage at the end of the deal, you’ll pay the standard variable rate, which is currently 4.74%.

First Direct: two year fixed rate mortgage charging 1.89% on mortgages up to 90% loan to value. There’s a booking fee of £1,450 and a valuation fee of £232. If you don’t remortgage at the end of the deal, you’ll pay the standard variable rate, which is currently 3.69%.

HSBC: two year fixed rate mortgage charging 1.94%. It’s available on mortgages up to 90% loan to value. There’s a booking fee of £99 and an arrangement fee of £900. If you don’t remortgage at the end of the deal you’ll pay the standard variable rate, which is currently 3.69%.

Lowest five year fixed rate mortgage

You can get a five year fixed rate mortgage charging less than 1.7%. The fees are almost £1,000, but, as it’s a five year deal, it’s only £200 a year, which isn’t too bad. Here are some of the five year fixed rate mortgage best buys:

HSBC: : five year fixed rate mortgage charging 1.69%. It’s available on mortgages up to 60% loan to value. There’s a booking fee of £99 and an arrangement fee of £900. If you don’t remortgage at the end of the deal you’ll pay the standard variable rate, which is currently 3.69%.

Woolwich: five year fixed rate mortgage charging 1.75%. It’s available on mortgages up to 60% loan to value. There’s an arrangement fee of £999 and a fee of £35 (not quite sure what that’s for). These deals are only available via mortgage brokers. Woolwich mortgages are provided by Barclays. If you don’t remortgage at the end of the deal you’ll pay the standard variable rate, which is currently 3.74%.

Leek United Building Society: five year fixed rate mortgage charging 2.55%. It’s available on mortgages up to 90% loan to value. There’s a booking fee of £100 and an arrangement fee of £895. If you don’t remortgage at the end of the deal you’ll pay the standard variable rate, which is currently 5.19%.

Lowest ten year fixed rate mortgage

HSBC has brought out a ten year fixed rate mortgage charging less than 3%.

HSBC: ten year fixed rate mortgage charging 2.69%. It’s available on mortgages up to 70% loan to value. There’s a fee of £999, but you get the cost of a standard valuation covered. This mortgage is 0.25% lower than HSBC’s previous ten year fixed rate deal.

Useful links: 

I used mortgage brokers London & Country and John Charcol’s websites to compile this list.

Related articles:

Getting the best remortgage deal; fees, charges and rates that matter

How to find a good mortgage broker

Paying off your mortgage early — how to get the best results when overpaying your mortgage

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