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.