The best UK fixed-rate mortgages 2017


Updated on 25 September 2017 | 4 Comments

If you want to fix your mortgage repayments, here are the top deals now.

Yorkshire Building Society has launched a  0.99% two-year fixed-rate mortgage for borrowers with a 20% deposit or equity in their home.

However, it’s only available through mortgage brokers, so you will need to go through Accord Mortgages, Yorkshire Building Society’s lending arm to get the deal.

The 80% loan-to-value deal is the cheapest rate ever offered to those with a 20% deposit.

But is a two-year deal the right one for you? We take a look at the advantages of going for a fixed-rate deal and compare the best buys across two-, five- and ten-year deals.

Why go for a fixed-rate mortgage?

Fixed-rate mortgages are very popular, and it’s easy to understand why.

They provide you with certainty – you know that for the length of your fixed-rate period, your repayments will remain exactly the same each month, no matter what the Bank of England does with the Base Rate.

However, knowing that you want to fix your mortgage rate is only half the decision. You need to work out how long you want to fix for too.

Two-year fixed rate mortgages are the cheapest, but you only have certainty about your mortgage payments for a brief period of time.

If you want the added security of a five-year fixed-rate, you’ll pay a premium in the form of a higher interest rate.

Long-term fixed rates also come with much higher Early Repayment Charges, so you might need to take that into account too.

Top two-year fixed-rate mortgages

First, let’s look at the two-year fixed-rate mortgages with the lowest rates around. Be warned, nabbing a tiny interest rate usually means you’ll have a stump up a hefty product fee.

Lender

LTV

Rate

Fee

ERCs

Yorkshire Building Society

60%

0.99%

£1,495

2% in the first year, then 1% until the end of the fixed period.

Monmouthshire Building Society  

65%

1.13%

£999

3% until the end of the fixed period.

HSBC

70%

1.14%

£999

2% in the first year, then 1% until the end of the fixed period.

Yorkshire Building Society

75%

1.13%

£995

2% in the first year, then 1% until the end of the fixed period.

Accord Mortgages

80%

0.99%

£1,495

2% in the first year, then 1% until the end of the fixed period.

Post Office Money 

85%

1.27%

£995

3% in the first year, then 2% until the end of the fixed period.

Yorkshire Building Society

90%

1.89%

£995

2% in the first year, then 1% until the end of the fixed period.

Yorkshire Building Society

95%

3.30%

£995

2% in the first year, then 1% until the end of the fixed period.

As you can see, the rates on the top deals tend to command a big fee. So, we’ve also picked out the best rates on two-year deals with a fee of under £500.

Lender

LTV

Rate

Fee

ERCs

Post Office Money 

60%

1.35%

£295

3% in the first year, then 2% until the end of the fixed period.

West Bromwich Building Society

65%

1.29%

£500

3% in the first year, then 2% until the end of the fixed period.

Platform (for Intermediaries)

70%

1.49%

£0

2% in the first year, then 1% until the end of the fixed period.

Post Office Money 

75%

1.39%

£295

3% in the first year, then 2% until the end of the fixed period.

Post Office Money 

80%

1.58%

£295

3% in the first year, then 2% until the end of the fixed period.

Post Office Money

85%

1.68%

£295

3% in the first year, then 2% until the end of the fixed period.

Principality Building Society

90%

2.1%

£0

2% in the first year, then 1.5% until the end of the fixed period.

Monmouthshire Building Society

95%

3.2%

£0

3% until the end of the fixed period.

Compare mortgages with loveMONEY

Five-year fixed-rate mortgages

If you want to go for a longer-term fixed rate deal, then you may prefer a five-year fixed rate deal.

While you enjoy that security for longer, you may have to pay a premium in terms of a higher rate. You also have significant Early Repayment Charges to consider should you wish to leave the deal early.

Lender

LTV

Interest rate

Product fees

ERCs

HSBC

60%

1.59%

£999

5% of the amount redeemed until 2018

4% of the amount redeemed until 2019

3% of the amount redeemed until 2020

2% of the amount redeemed until 2021

1% of the amount redeemed until 2022

Metro Bank

65%

1.69%

£999

5% until 2018,
then
4% until 2019,
then
3% until 2020,
then
2% until 2021 the

1% until 2022

HSBC

70%

1.74%

£999

5% of the amount redeemed until 2018

4% of the amount redeemed until 2019

3% of the amount redeemed until 2020

2% of the amount redeemed until 2021

1% of the amount redeemed until 2022

Atom Bank*

75%

1.69%

£1,120

5% until 2018,
then
4% until 2019,
then
3% until 2020,
then
3% until 2021 then 2% until 2022

Leeds Building Society

80%

1.89%

£1,999

5% until 2018,
then
5% until 2019,
then
4% until 2020,
then
3% until 2021 then 2% until 2022

Atom Bank*

85%

1.99%

£1,120

5% until 2018,
then
4% until 2019,
then
3% until 2020,
then
3% until 2021 then 2% until 2022

Atom Bank*

90%

2.39%

£1,120

5% until 2018,
then
4% until 2019,
then
3% until 2020,
then
3% until 2021 then 2% until 2022

*Available via intermediaries

And now let’s take a look at the best deals with a fee of under £500.

Lender

LTV

Interest rate

Product fees

ERCs

Atom Bank*

60%

1.74%

£220

5% until 2018,
then
4% until 2019,
then
3% until 2020,
then
3% until 2021 then 2% until 2022

Virgin Money

65%

1.98%

£0

4% of the outstanding loan balance

HSBC

70%

1.99%

£0

5% of the amount redeemed until 2018

4% of the amount redeemed until 2019

3% of the amount redeemed until 2020

2% of the amount redeemed until 2021

1% of the amount redeemed until 2022

Atom Bank*

75%

1.79%

£220

5% until 2018,
then
4% until 2019,
then
3% until 2020,
then
3% until 2021 then 2% until 2022

Atom Bank*

80%

1.89%

£220

5% until 2018,
then
4% until 2019,
then
3% until 2020,
then
3% until 2021 then 2% until 2022

Post Office Money 

85%

2.11%

£0

4% of the sum repaid until 30/11/2019, then 3% until 30/11/2021, then 2% 30/11/2022

Atom Bank*

90%

2.49%

£220

5% until 2018,
then
4% until 2019,
then
3% until 2020,
then
3% until 2021 then 2% until 2022

*Available via intermediaries

Looking for a mortgage? Compare rates

Ten-year fixed-rate mortgages

A ten-year fixed rate can offer long-term piece of mind and the market is booming.

Again the longer security means a higher rate and significant ERCs to consider should you wish to leave the deal early.

Here are the top rates at the moment.

Lender

LTV

Interest rate

Product fees

ERCs

Coventry Building Society

50%

2.55%

£999

5%, 5%, 3%, 3%, 3%, 1%, 1%, 1%, 1%, then 1% until end of fixed period.

First Direct

60%

2.49%

£0

3% in year 1, then 2% until end of fixed period

Leeds Building Society

65%

2.59%

£999

6%, 6%, 5%, 5%, 5%, 5%, 4%, 4%, 3% then 2% until end of fixed period

HSBC

70%

2.69%

£0

10% then 9% then 8% then 7% then 6% then 5% then 4% then 3% then 2% then 1% until end of fixed period

First Direct

75%

2.64%

£0

3% in year 1 then 2% until end of fixed period.

Barclays

80%

2.69%

£999

5% until the end of the fixed period.

TSB

85%

3.33%

£0

5% to 31 January 2019
4% to 31 January 2020
3% to 31 January 2021
2% to 31 January 2022
1% to 31 January 2023

Nationwide

90%

3.89%

£999

7% for four years, then 6%, 5%, 4%, 3%, 2% and 1% until end of fixed period

As you can see, although these best buy deals offer eye-catching low rates, many also carry hefty fees. So here are the best 10-year fixed-rate deals with fees under £500.

Lender

LTV

Interest rate

Product fees

ERCs

First Direct

60%

2.49%

£0

3% in year 1, then 2% until end of fixed period

TSB

65%

2.94%

£0

5% to 31 January 2019
4% to 31 January 2020
3% to 31 January 2021
2% to 31 January 2022
1% to 31 January 2023

HSBC

70%

2.69%

£0

10% then 9% then 8% then 7% then 6% then 5% then 4% then 3% then 2% then 1% until end of fixed period

First Direct

75%

2.64%

£0

3% in year 1 then 2% until end of fixed period.

First Direct

80%

2.89%

£0

3% in year 1 then 2% until end of fixed period

TSB

85%

3.33%

£0

5% for year 1, 4% for year 2, 3% for year 3, 2% for year 4, 1% for year 5.

Nationwide

90%

3.99%

£0

7% for four years, then 6%, 5%, 4%, 3%, 2% and 1% until end of fixed period

This loveMONEY article is regularly updated

Now read these: 

How to remortgage

How to beat Stamp Duty

The best Help to Buy mortgages

 

 

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