Best mortgage rates in 2019

A selection of the best mortgage rates in 2019

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Fixed rate mortgages continue to be popular in the UK due to the reliability of knowing how much you need to pay each month. However, finding and keeping the best fixed mortgage rate can be problematic. Many deals often start with a low, fixed rate but often switch into a higher variable rate after a set period of time. This means you can end up paying more than you expected if you end up on the variable rate.

We have created a number of tables each of which shows a list of mortgage lenders and the rates they have for certain deals with different criteria.

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Which factors should I take into account when choosing the best rate?

The introductory rate is one of the most important factors to consider when comparing mortgages, but it doesn’t tell the whole story. Here are some other elements to take into account.

  • Term length. Fixed-rate mortgages with longer terms have higher rates, but you’ll be protected against potential rate rises for longer. It’s often recommended to apply for short-term mortgages and remortgage once the introductory term ends, but there’s no guarantee you’ll be in a financial position to be approved for a remortgage at that time, which is another reason why some people prefer the security of long-term mortgages.
  • Extra fees. Most mortgage products will have one-off fees attached to them. These should be considered as well as the interest rate. The best way to compare mortgages is to calculate the total amount you’ll spend during the introductory term. The main fee to look out for is an “arrangement fee”. This often adds up to several hundred pounds, even though some mortgage products don’t include this at all. Some lenders will give you the option to add any fees onto the mortgage, but this should be avoided whenever possible, as it will mean paying interest on them for the entirety of your mortgage term.
  • SVR (standard variable rate). This is the rate you’ll be switched onto after the introductory rate ends. It’s best to remortgage before you’re moved on to this significantly higher rate, but that’s not always possible, so it’s worth bearing this rate in mind.
  • Total repayable. This is the total amount you’ll owe over the length of your mortgage. This won’t be too important if you’re planning to remortgage after the introductory term ends, but it’s still a useful figure to help you compare products. The easiest way to reduce your total repayable is to cut the length of your mortgage. Your monthly repayments will be higher, but the amount of interest paid will drop significantly.
  • LTV (loan-to-value). This is the amount of money you’re borrowing from your lender, expressed as a percentage of your property value. With a higher deposit, you’ll be able to access mortgages with a lower LTV ratio. These mortgages have lower rates, plus you’ll pay less interest in total.

Which bank offers the best mortgage rate?

While there is a range of factors to consider when choosing a mortgage lender, interest rate is probably one of, if not the, most significant. There’s no one “best” bank for this though, as each lender will cater for different individual circumstances and rates will vary over time. This is why it’s important to identify what you’re looking for and compare lenders based on your own criteria. To gain an insight into the market and begin comparing lenders, here are our tables.

Best 2 year fixed rate mortgages for 2019

This table shows a list of mortgage providers offering repayment mortgages on a property worth £250,000 with a mortgage amount of £200,000 over a 25 year period. The initial rates shown are set to up to 2 years fixed and after that the variable rate begins. These rates are based on an 80% loan-to-value (LTV) ratio.

LenderInitial rateReverts toTotal amount repayable
NatWest1.41%4.24%£311,985
NatWest1.45%4.24%£312,359
HSBC1.49%4.19%£311,055
NatWest1.53%4.24%£312,525
Platform1.54%4.99%£334,109
These rates were taken on the 16 October 2019 from L&C.

Best 3 year fixed rate mortgages for 2019

This table shows a list of mortgage providers offering repayment mortgages on a property worth £250,000 with a mortgage amount of £200,000 over a 25 year period. The initial rates shown are set to up to 3 years fixed and after that the variable rate begins. These rates are based on an 80% loan-to-value (LTV) ratio.

LenderInitial rateReverts toTotal amount repayable
HSBC1.69%4.19%£306,555
Halifax1.78%4.24%£308,663
TSB1.79%4.24%£308,495
Platform1.79%4.99%£328,049
Platform1.84%4.99%£328,493
These rates were taken on the 16 October 2019 from L&C.

Best 5 year fixed rate mortgages for 2019

This table shows a list of mortgage providers offering repayment mortgages on a property worth £250,000 with a mortgage amount of £200,000 over a 25 year period. The initial rates shown are set to up to 5 years fixed and after that the variable rate begins. These rates are based on an 80% loan-to-value (LTV) ratio.

LenderInitial rateReverts toTotal amount repayable
Natwest1.79%4.24%£298,295
TSB1.79%4.24%£298,795
Platform1.84%4.99%£314,909
HSBC1.84%4.19%£297,639
NatWest1.85%4.24%£298,893
These rates were taken on the 16 October 2019 from L&C.

Why choose a fixed-rate mortgage?

A fixed-rate mortgage allows you to be certain about the cost of your monthly mortgage repayments. With other mortgage types, such as tracker mortgages and discount mortgages, the interest rate fluctuates based on the Bank of England base rate.

Some homeowners wouldn’t be able to handle a sudden spike in the cost of the monthly mortgage repayments, and would, therefore, prefer the certainty of a fixed-rate mortgage, even if it originally cost them a little more.

Two-year fixed rate mortgages tend to have the lowest interest rates on the market. It may be possible to keep these low rates until you’ve paid off the mortgage if you’re willing to remortgage every two years.

Alternatively, you can get a fixed-rate mortgage with a 10-year term, meaning you won’t have to worry about remortgaging for a decade.

Pros and cons of fixed-rate mortgages

Pros

  • Your mortgage repayments remain the same, providing financial certainty.
  • You don’t have to stress about the prospect of interest rates rising.
  • These products tend to be very cheap when interest rates are low.
  • You can end up paying significantly less in the long run if you fix just before the BoE base rate rises.

Cons

  • You’ll pay more, compared to those with other mortgage types, if interest rates fall during your mortgage term.
  • You’ll have to remortgage at the end of your term to avoid paying the SVR. This can be time-consuming and involves fees.
  • Some fixed-rate mortgages aren’t portable, meaning you’ll face exit fees if you move house.

Why is a mortgage adviser is important?

A mortgage adviser will have the knowledge to compare the whole market and recommend the best deal for your circumstances. Most importantly, they’ll be able to recommend the providers most likely to approve someone in your financial position, meaning you’ll be less likely to waste your time and ruin your credit score by submitting several rejected applications.

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We exist to help you find better. The offers we've compared on this page are from a range of products whose details we can track; we don't cover every product on the market...yet. Unless we've indicated otherwise, products are shown in no particular order or ranking. The terms "best", "top", "cheap" (and variations of these) aren't product ratings, although we always explain what's great about a product when we highlight it; this is subject to our terms of use. When you make major financial decisions, it's wise to consider getting independent financial advice. Always consider your own financial circumstances when you compare products so you get what's right for you.

Your home may be repossessed if you do not keep up repayments on your mortgage.
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