Call for your free quote 0800 955 0058

Mortgage rates reduce further for those with the most equity

Lenders reduce rates as low as 0.84% for home movers and remortgage buyers with the most equity with more competition.

Mortgage rates continue to reduce with Santander and TSB offering deals of 0.84% for remortgage buyers with 40% equity, according to Moneyfacts, as competition remains high from lenders.

Santander are leading with an offer for their two-year fixed remortgage rate of 0.84% reverting to 3.35% variable on 2 December 2023 and requiring a 60% loan to value (LTV).

The deal offers a free valuation with an application fee of £749 available in England, Wales and Northern Ireland including £250 cashback on completion and free legal fees.

Find out how much you can save over the variable rate with a remortgage deal for your home at this link:
Remortgage calculator with instant results and figures for your property.

Remortgage buyers offered low rates

Demand for mortgages has reduced as the stamp duty holiday ends in part and lenders are offering competitive rates for remortgage buyers to keep or win business.

This table from Moneyfacts shows the best remortgage buyer rates from lenders for different terms and the product fees.
Lender Rate Product fee
Term
Santander 0.84% £749 2-years
TSB 0.84% £995 2-years
Nationwide 0.89% £999 3-years
HSBC 0.96% £1,499 5-years
Matching Santander with a competitive rate is TSB offering 0.84% for a two-year fixed mortgage reverting to 3.59% on 30 November 2023.

For this mortgage you need 40% equity in your property with a 60% LTV and the product has a £995 application fee, free valuation and legal fees.

For a longer three-year fixed rate mortgage the best offer is from Nationwide with a rate of 0.89% available with a 60% LTV, application fee of £999, free valuation and legal fees including £500 cashback on completion.

Even a five-year fixed rate mortgage from HSBC offers a competitive 0.96% rate if you have 40% equity and earn a minimum of £75,000 with free valuation and legal fees but has a high £1,499 fee.

If your mortgage is smaller you may find paying high fees with a low fee is not cost effective and having a slightly higher rate with no fee is cheaper over the term of the mortgage deal.

For older homeowners, reducing the cost of equity release is possible with low fixed rates from 2.54% upwards and the option of paying all or some of the interest or letting it roll-up over time.

Great rates for home movers

If you are a home mover the lenders have reduced rates to win business with Nationwide leading the market by offering a two-year fixed rate of 0.87% if you have a 40% deposit reverting to 3.59%.

The offer is only available if your mortgage is £275,000 or more including £500 cashback, free valuation and legal fees but high £1,499 application fee.

Nationwide offers a three-year fixed rate of 0.89% with cheaper application fee of £999 and same incentives as the two-year deal or a five-year fixed of 0.94% but with a higher application fee of £1,499.

If you are a first time buyer with a 10% deposit, Barclays offers a two-year fixed rate of 1.97% with 90% LTV and £999 application fee.

For a longer five-year fixed rate, Virgin money has a deal for 2.62% if you have a 10% deposit for loans up to £540,000 with an application fee of £995 and cashback of £500.

What are your next steps?

Talk to our London City Mortgage brokers for advice if you remortgage your existing home and want the best mortgage deal. Learn more by using the property value tracker chart and equity release calculator.

Start your free remortgage quote and let us find the best mortgages and lowest rates for your property at this link:
Free mortgage quote with the lowest remortgage rates for your property.

If you are releasing equity from your property to repay an interest only mortgage, we can recommend lifetime mortgages so begin your equity release quote for the latest provider offers.


Mortgage Best Buys

These are examples of mortgage products we can approach with many more offering interest rates and flexibility to meet your needs.

1.19% Fixed Rate
60% Loan to Value
£999 App Fee
2-Years Time
Reverts to 3.59%
1.18% Fixed Rate
60% Loan to Value
£1,034 App Fee
Until 31/10/2022
Reverts to 3.59%
1.17% Fixed Rate
60% Loan to Value
£1,025 App Fee
Until 31/09/2022
Reverts to 3.59%
1.16% Fixed Rate
60% Loan to Value
£1,525 App Fee
Until 01/11/2022
Reverts to 4.09%

The latest mortgage news


27 Apr 2022

Mortgage costs hit a five year high as central banks raise base rates

After the Bank of England raised base rates to 0.75% lenders have reacted by increasing the cost of mortgages reaching a five year high.

16 Apr 2022

House prices in seaside towns rise 8pc as demand remains strong

Homes on the coast attract a premium and house prices are up 8% on the previous year as buyers seek to improve their quality of life.

14 Mar 2022

15 million homes can benefit from energy efficiency upgrades

Detached homes face the biggest energy costs due to lack of efficiency and in need of upgrades as we face a rise in the fuel energy cap.

25 Feb 2022

Detached home values at £425,000 with higher demand

The average value of detached homes has increased at twice the rate of smaller properties to £425,000 with a surge in buyer demand.

Call for your free quote 0800 955 0058

  • IMPORTANT

    Equity Release may involve a Lifetime Mortgage or a Home Reversion Scheme. To understand the features and risks, please ask for a personalised illustration. Equity Release may affect your entitlement to means tested state benefits and will impact on the size of your estate. For Equity Release London City Mortgages charge a fixed fee upon completion of £695. For Mortgages a fixed fee is charged on application. Typically this is from £295 up to £495 for the services selected.

  • WARNING

    Equity Release - Equity Released from your home will be secured against it. Mortgages – Your home may be repossessed if you do not keep up repayments on your mortgage or other loans secured against it. Think carefully before securing other debts against your home. The information contained in this website is subject to the UK regulatory regime and is therefore intended for consumers based in the UK.

    CONTACT

    Address:
    9th Floor, 30 Crown Place
    London, EC2A 4EB

    Phone:
    0800 955 0058

    Email:
    info@londoncitymortgages.co.uk

    London City Mortgages Limited is a registered company in England & Wales under company number 09278987. London City Mortgages Limited is an Appointed Representative (FCA no. 655965) of Blackstone Moregate Limited (FCA no. 459051) which is authorised and regulated by the Financial Conduct Authority. LCM and LCM Equity Release are trading names of London City Mortgages Limited.

    2022 © London City Mortgages.
    Website designed & developed by Spyre Media