The best mortgages for different borrowers
We round up the top deals whatever your circumstances
It’s different strokes for different folks when it comes to mortgages, since no two borrowers are the same.
Most lenders’ products are available to first-time buyers, home movers and remortgagors, but many are specifically targeted at certain groups.
For example, some lenders currently reserve their best deals for purchasers (including first-time buyers and home movers), while other products are only available to borrowers who want to remortgage but are not moving house. It’s always worth checking this when you first see a deal to avoid disappointment later.
Then comes the all-important question of deposit. What you have upfront, either as existing equity in your home, an upfront deposit, or the two combined, will make an enormous difference to the deals you can access.
As if that wasn’t enough you need to choose between a fixed and a variable rate, one of the biggest decisions you will make in terms of your mortgage. The reasons for and against each type of deal have been discussed many times on these pages, for example in my recent article Why you are better off with a tracker mortgage and in John Fitzsimons’ feature Fix your mortgage at 2.69%.
In terms of cost, if you go for the safety of a fixed rate you need to accept that you will currently pay a premium. If you go for a cheap variable deal (such as a tracker or a discount) you will initially benefit from cheaper monthly repayments, but of course you face the risk of rising interest rates.
The point is that the best type of mortgage for you is completely dependent on lots of different things, including those mentioned above as well as the length of deal you prefer to go for and the level of fee you are prepared to pay to secure your homeloan.
Below are some of the best mortgages currently on offer for different types of borrowers. These are just a snapshot and, depending on your circumstances and attitude to risk, there may be more suitable deals available.
13 fab deals for first-time buyers
John Fitzsimons looks at the dos and don’ts of arranging a mortgage over the internet.
The deals below are all available to first-time buyers, and assume a small deposit, as it is often those buying for the first time who need to borrow up to 85% or 90% of the property’s value.
However, some home movers or remortgagors might also have very little equity in their properties, especially if you have seen your house price slide in recent years. In that case it is worth looking at these deals as many are available to all borrowers.
Equally, if you are a first-time buyer with a deposit of more than 15% you will be able to access more competitive rates than these, so make sure you also check out the sections below.
|
LENDER |
TYPE OF DEAL |
RATE |
FEE |
MAX LTV |
|
3-year tracker |
3.19% (Base + 2.69) |
£999 |
85% |
|
|
2-year tracker |
3.49% (base + 2.99) |
£495 |
85% |
|
|
2-year fix |
3.95% |
£995 |
85% |
|
|
Term tracker |
3.99% (Base + 3.49) |
£99 |
85% |
|
|
3-year fix |
4.69% |
£999 |
85% |
|
|
3-year tracker |
4.29% (Base + 3.79) |
£499 |
90% |
|
|
Term tracker |
4.49% (Base + 3.99) |
£499 |
90% |
|
|
Term variable |
4.69% |
Fee-free |
90% |
|
|
Term variable |
4.19% |
Fee-free |
85% |
|
|
2-year fix |
4.99% |
£499 |
90% |
|
|
2-year fix |
4.95% |
£995 |
90% |
|
|
5-year fix |
5.29% |
£995 |
85% |
|
|
5-year fix |
5.89% |
£499 |
90% |
10 top home mover mortgages
Many homeowners are lucky to have accrued some equity since they bought their current home, so they often (but not always) tend to have larger deposits when they come to buy their next property.
The deals below are all available to those moving home who need to borrow between 75% and 80% of their new property’s value. If you have more equity than this you may be able to access even better deals so read the next section too.
|
LENDER |
TYPE OF DEAL |
RATE |
FEE |
MAX LTV |
|
2-year discount |
2.25% |
£995 |
75% |
|
|
2-year tracker |
2.39% (Base + 1.89) |
£995 |
75% |
|
|
3-year tracker |
2.49% (Base + 1.99) |
£999 |
75% |
|
|
Term tracker |
2.79% (Base + 2.29) |
£99 |
75% |
|
|
2-year fix |
2.89% |
£995 |
75% |
|
|
2-year fix |
2.99% |
£495 |
75% |
|
|
2-year fix |
3.49% |
£999 |
80% |
|
|
30-month fix |
3.49%* |
£499 |
75% |
|
|
5-year fix |
3.99% |
£995 |
75% |
|
|
5-year fix |
4.75% |
£999 |
80% |
*Max loan of £125,000
12 terrific deals for remortgagors
If you are in the home you intend to stay in for the long term, that doesn’t mean you won’t want to switch your mortgage regularly, as you can still save money by doing so.
Many remortgagors have built up significant equity and the deals below are suitable for those with a deposit of 30% or more. However, lots of them are also open to first-time buyers and home movers with a large deposit.
|
LENDER |
TYPE OF DEAL |
RATE |
FEE |
MAX LTV |
|
2-year discount |
1.99% |
£999 |
70% |
|
|
2-year tracker |
2.19% (Base + 1.69) |
£999 |
60% |
|
|
Term tracker |
2.29% (Base + 1.79) |
£99 |
65% |
|
|
2-year tracker |
2.29% (Base + 1.79) |
£945 |
60% |
|
|
Term tracker |
2.35% (Base + 1.85) |
£945 |
60% |
|
|
Term tracker |
2.49% (Base + 1.99) |
£999 |
70% |
|
|
2-year tracker |
2.59% (Base + 2.09) |
£995 |
70% |
|
|
2-year fix |
2.64% |
2% |
70% |
|
|
2-year fix |
2.69% |
£1,499 |
60% |
|
|
2-year fix |
2.85% |
£1,995 |
60% |
|
|
2-year fix |
2.89% |
£1,295 |
70% |
|
|
5-year fix |
4.09% |
£945 |
60% |
12 best buy-to-let mortgages
Buy-to-let landlords face a tough time getting or switching a mortgage, with lending criteria still very restricted. The absolute minimum deposit you will need is 20% and there are only a few mortgages at that level; most require at least 25% upfront.
Remember that as well as the criteria listed here you also need to check the minimum rental cover on each mortgage to see if it is accessible to you -- most require monthly rental income of at least 125% of mortgage repayments.
|
LENDER |
TYPE OF DEAL |
RATE |
FEE |
MAX LTV |
|
2-year tracker |
3.64% (Base + 3.14) |
3.5% |
60% |
|
|
Term tracker |
3.88% (Base + 3.38) |
£1,695 |
65% |
|
|
2-year tracker |
3.89% (Base + 3.39) |
3.5% |
60% |
|
|
2-year fix |
4.58% |
£995 |
60% |
|
|
2-year tracker |
4.59% (Base + 4.09) |
£995 |
75% |
|
|
2-year fix |
4.89% |
£999 |
60% |
|
|
2-year tracker |
4.99% (Base + 4.49) |
£1,999 |
75% |
|
|
2-year fix |
4.99% |
3.5% |
70% |
|
|
3-year fix |
5.29% |
£1,495 |
75% |
|
|
2-year fix |
5.40% |
2.5% |
75% |
|
|
3-year fix |
5.49% |
3% |
80% |
|
|
5-year fix |
5.69% |
£1,549 |
60% |
More: Machine gun your mortgage | The safest variable mortgage around
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