Weekly Mortgage Roundup: Top UK Products
Each week, we review the leading mortgage products in the UK, focusing on rates and features across all major types and terms.
Representative Example
A typical example is a £200,000 mortgage over 25 years with an initial 62-month fixed rate of 4.70%, then reverting to a 7.34% variable rate for the remainder. This involves 62 monthly payments of £1,134.49 and 238 payments of £1,401.17.
The total payable amount is £404,946.84, which includes the loan, £203,817 interest, no valuation fees, and £995 product fees. The overall cost for comparison stands at a 6.4% APRC.
New Rate Changes for First-Time Buyers
For first-time buyers with a 10% deposit, the lowest two-year fixed rates on deals financing up to 90% loan-to-value (LTV) have decreased this week. NatWest, NatWest International Solutions, and Royal Bank of Scotland (RBS) have all reduced their rates.
- Each lender offers two deals, each with a £995 arrangement fee and free valuation included.
- One deal from each lender also includes a £250 cashback, providing additional support for homebuyers.
Availability and Application Details
- Borrowers in Great Britain and Northern Ireland can apply for NatWest deals directly and for NatWest International Solutions deals through intermediaries.
- RBS deals are available directly to those in Great Britain, the Isle of Man, and the Channel Islands.
Fee-Free Options
Alternatively, all three lenders offer two-year fixed deals at 4.44% that come without any product fees, maintaining the same terms and features as the above deals.
“The extra perk of £250 cashback is also available on one of the deals from each lender, which may appeal to those wanting extra support with the costs of buying a home.”
These updates offer promising options for newcomers to the housing market, balancing cost savings with supportive features.