Weekly Mortgage Roundup: Top UK Products
Each week we review the leading mortgage products in the UK, comparing rates and features across all major types and terms.
Representative Example
A typical mortgage example: £200,000 over 25 years, initially fixed at 4.70% for 62 months, then reverting to a variable rate of 7.34% for the remainder of the term.
- 62 monthly payments of £1,134.49
- 238 monthly payments of £1,401.17
- Total payable amount: £404,946.84
- Includes loan amount, interest (£203,817), valuation fees (£0), and product fees (£995)
- Overall cost for comparison: 6.4% APRC representative
Encouraging Rate Drops for First-Time Buyers
For first-time buyers with a 10% deposit, the lowest two-year fixed rates on 90% LTV deals have decreased following reductions by NatWest, NatWest International Solutions, and Royal Bank of Scotland (RBS).
Each lender offers two deals with a £995 arrangement fee and includes a free valuation.
Additionally, one deal from each lender provides £250 cashback, assisting buyers with initial home purchase costs.
Availability
- NatWest deals are accessible directly in Great Britain and Northern Ireland.
- NatWest International Solutions deals require application via an intermediary.
- RBS deals are offered directly to borrowers in Great Britain, the Isle of Man, and the Channel Islands.
Fee-Free Options
Alternatively, the same lenders present two-year fixed deals at 4.44% with no product fees, matching the terms and features of the fee-paying deals above.
"Each lender offers two deals, all of which charge a £995 arrangement fee and offer the benefit of a free valuation. The extra perk of £250 cashback is also available on one of the deals from each lender."
Author's summary: Recent reductions in two-year fixed mortgage rates provide first-time buyers with more affordable options, including cashback and fee-free deals for greater financial flexibility.