Updated: Tue, 18 Jun 2013 01:00:00 GMT | By lovemoney.com

The cheapest fixed rate mortgages ever

Interest rates on fixed rate mortgages have, once again, hit all-time lows. We round up the best of the new deals.


The cheapest fixed rate mortgages ever

The cheapest fixed rate mortgages ever

The economy may be in the doldrums but there is some good news if you're looking for a mortgage, as rates continue to fall to new record lows, particularly on fixed rate mortgages.

This is mainly thanks to the government's Funding For Lending scheme, which is offering cheap loans to banks and building societies so long as the money is lent to individual borrowers and small businesses.

Recent research by mortgage broker John Charcol found that the interest rates on five-year fixed rate mortgages are currently up to 3% cheaper than some lenders' Standard Variable Rate (SVR). This is the rate you're mostly likely to go onto after an introductory discounted period on a fixed, variable or tracker mortgage ends.

Let's take a look at some of the record-breaking fixed rate mortgages on offer now, starting with short-term fixes.

Lowest rate ever!

Chelsea Building Society is leading the way with low rate deals, and its latest mortgage at just 1.69% fixed for two years is simply unbelievable.

On a £150,000 25-year repayment mortgage that would mean monthly repayments of just £613.

The deal comes with a fee of £1,545 but it is only available to those with a large 40% deposit.

Even with the high fee this is still a great option for many borrowers. If you want to pay no fee at all there are plenty of choices available, at very low prices, starting from just 2.55% with the Post Office. But for those borrowing a larger sum and looking for short-term security, this is a great rate.

NatWest cuts back

Meanwhile, NatWest is offering a rate of 1.74% fixed until 31st October 2015. Again, this is only available to borrowers with a 40% deposit or equity in their homes and it has a slightly higher fee than Chelsea's at £1,995.

Post Office tops best buy tables

The Post Office has launched its ‘best ever mortgage range’ with some of the new deals riding high in the best buy mortgage tables.

The good news is that its best new deals are targeted at borrowers with a modest deposit. It leads the market in this space with a fee-free two-year fix at 3.19% for those with a 20% deposit and 3.49% for those with a 15% deposit.

Borrowers with 15% upfront who want longer-term security can opt for a competitive five-year fixed rate at 3.69% with a fee of £995.

And those with a slightly bigger 25% deposit can bag a seriously impressive five-year fix at 2.85%. With a modest fee of £995 (yes that is modest in today’s market) this is a very competitive deal indeed.

This is a seriously impressive range from the Post Office, and it hits the mark for all borrowers, not just those with massive deposits.

Barclays goes long

Woolwich from Barclays has reduced some of its fixed rates including on its ten-year mortgage. This is now just 3.89% fixed for ten years and is available to those with 30% or more upfront. The £1,499 fee may look steep but when you consider that you won’t need to pay another for ten years, it’s better value than many.

But its new five-year fix at 2.99% is an absolute stonker of a deal with no fee whatsoever, available up to 60% LTV. This is only available to remortgagors as part of the lender’s Great Escape package – which comes with no fees at all.

The ten-year deal is fantastic for those who want long-term payment security, while the five-year fix for remortgagors is a stunning rate for a totally fee-free deal.

Fancy a low fee?

For those who want to get a combination of a low interest rate and a low fee Norwich & Peterborough has just launched its lowest ever two- and three-year fixed rate mortgages.

The two-year fix at 1.89% comes with a standard £995 fee but the three-year deal at 2.34% has a tiny £295 fee. Both are available to those with 35% upfront.

Both are good products, but it’s the three-year deal stands out because of the low fee.

Small deposit special!

Skipton Building Society has launched a new deal aimed squarely at borrowers who don’t have the massive, or even medium-sized, deposits required to bag the headline rates.

Its two-year fixed mortgage is available to those who can only muster 10% upfront and it is fee-free. The rate is 3.99%, plus borrowers get £160 cashback on completion – the £160 is relevant as it’s to celebrate Skipton’s 160th birthday.

The rate may not seem as low as some of the other deals, but this is a truly impressive deal in its own field, for those with 10% upfront. Plus it’s fee-free.

Take a look at the latest mortgage rates

Top fixed rates compared

The following tables show some of the top fixed rate mortgages for different deposit sizes.

Large deposit

Lender

Type of mortgage

Rate

Product fee

Maximum loan-to-value (LTV)

Chelsea BS

Two-year fix

1.69%

£1,545

60%

NatWest

Two-year fix

1.74%

£1,995

60%

Yorkshire BS

Two-year fix

1.89%

£1,345

60%

Chelsea BS

Three-year fix

1.99%

£1,545

60%

Norwich & Peterborough BS

Three-year fix

2.34%

£295

65%

Halifax

Five-year fix

2.45%

£1,995

60%

First Direct

Five-year fix

2.49%

£1,999

65%

HSBC

Two-year fix

2.59%

Fee-free

60%

HSBC

Five-year fix

2.99%

Fee-free

60%

Santander

Ten-year fix

3.94%

£995

60%

Medium-sized deposit

Lender

Type of mortgage

Rate

Product fee

Maximum loan-to-value (LTV)

Chelsea BS

Two-year fixed

2.24%

£1,545

75%

Chelsea BS

Three-year fix

2.44%

£1,545

75%

Chelsea BS

Five-year fix

2.84%

£1,545

75%

First DirectTwo-year fix2.89%Fee-free75%

Post Office

Two-year fix

3.19%

Fee-free

80%

Barclays Woolwich

Ten-year fix

3.89%

£1,499

70%

Small deposit

Lender

Type of mortgage

Rate

Product fee

Maximum loan-to-value (LTV)

Post Office

Two-year fix

3.49%

Fee-free

85%

Chelsea BS

Two-year fix

3.59%

£1,545

90%

Yorkshire BS

Two-year fix

3.64%

£845

90%

Skipton BS

Two-year fix

3.99%

Fee-free

90%

First Direct

Five-year fix

4.19%

£1,499

90%

Hanley Economic BS

Five-year fix

4.20%

Fee-free

90%

The importance of a good credit history

While rates may be falling, in order to get the best mortgage you possibly can, you need to have a good credit history in addition to your deposit. To do this, it's crucial you make payments on any credit agreements you have on time, make sure you're on the electoral roll and make sure your credit history is correct and up to date.

If you want to check your credit history, you can get a free 30-day trial of your Experian credit report.

16Comments
20/06/2013 13:34
avatar

It's always gonna be hard to own your own house, be smart and work hard and it will be worth it in the end.

It's got to be better than throwing your money down the drain on rent, do your homework before getting your mortgage and you will thank yourself you did it. Be lucky everyone.

                                                                                  

19/06/2013 06:45
avatar
The demand on housing is such that the moment a scheme makes it easier to pay a mortgage the estate agents increase the house prices. Back to basics me thinks.
19/06/2013 11:49
avatar
The big mortgage trap, banks and the government are pushing the housing market up with cheap deals to trap people in long term dept.

We will see interest rates rise over the next couple of years causing a massive reprice of the housing market and the only way will be down.

This will then allow the banks to trap people in long high interest deals as they can not move making huge profits and the unfortunate will have their house taken away leaving them with massive depts and the bank then has the house to either pass on when it feels right or even start renting out properties as they will build a massive portfolio of repossessed houses.  

All it comes down to will be profit profit profit for the super rich and the bankers.
avatar
THE DEMAND ON HOUSING.

IS SOME THING YOU ALREADY KNEW WAS COMING WHEN YOU INCREASED TEH SIZE OF THE POPULATION.

IDIOTS.

avatar
PROBLEM IS


WE CAN,T AFFORD TO PAY - JUST THAT ONE BILL.

OUR WAGES,  YOU KNOW THE POOR PEOPLES WAGES, DON,T COUNT FOR **** IN THIS WORLD.

BUT HEY YOU HAVE GOT US BACK IN THE GUTTER, YOU KNOW WHERE YOU ALWAYS WANTED THIS HUMAN BEING TO BE AS WE ARE,NT SKELETONS LIKE YOU OR A VALUED LIFE.

WE ARE JUST HERE TO SERVE THE RICH, NOTHING MORE FOR US IN THIS LIFE.

A BEAUTIFUL PLANET, DON,T MAKE ME LAUGH.

avatar

... afta : BOE lender / 1% rate / 30 year type / free product fee / 100% LTV / no deposit / no tied in period / 500K / 30 years / 10.00 per month RePaYmEnT Mo ...

                                _________________

 

... but simply cannot find a single one for looking ... ( must be me ! / wot is it with me ? ) ...

... I just don`t understand these things and probably never will ...    ~

_________________________________________________________________________

avatar
YOUR BLOODY JOKING ARE,NT

WHAT BECOME A HUMAN LIVING ONLY TO PAY FOR HOUSE IM HARDLY IN MOST OF THE TIME.

MONEY HAS GONE TO YOUR HEAD MATE.

CAN,T AFFORD IT ANYWAY, SO GOT NOTHING TO LOOSE.

HAVE A GREAT DAY FOLKS

avatar
MOST PEOPLE CAN,T AFFORD A MORTGAGE.


IDIOT,  BUT ILL TOLD IM WRONG ONCE AGAIN.

MMMMMMMMM SO WHAT ARE WE LEFT WITH ON CRAPPY WAGES ONCE WE PAY ALL THE OTHER BILLS FIRST, EXCACTLY HARDLY ANYTHING.

YOU PEOPLE ARE LIVING ON ANOTHER PLANET, GET YOUR HEAD OUT YOUR ARSE,S.

19/06/2013 09:42
avatar

Sorry, these rates are rubbish...with fees and deposits it makes for the same old story:

 

If you have money you can save money.

If you don;t have money and want to save...you can't.

 

What about the APR rates?

avatar
ITS A MONEY TRAP TO GET YOU TO SIGN ON THE DOTTED LINE.

DON,T FALL FOR IT FOLKS.

19/06/2013 02:05
avatar
isnt this fab now you can enslave yourself even faster into massive debt with these great mortgages all dressed up in thier finery to trick ur feeble mind ........u will be forced into a garbage job paying crap money you will be terrifed to lose incase your house is taken back by the bank and you incure a huge penalty ,,,,,,,,,,,,,,,,,yes with us the bank of scum u can also get a credit card to ensure you spend your off days down dfs buying cheaply made crap expensive costing leather reclining rubbish that will fall to bits in 3 weeks ,,,,,,,,,,,,,that new car the one with the button thats fab and shinny will be on ur pikey tarmac drive rusting away cos fuel has gone up to 30 grand a litre .................   u can buy 50 million quids worth of cloths no better than primark kak but has a label saying armani or boss in it made by 7yr old kids in slave camps on 3p a wk to cloth western fraggles brain dead from watching bgt and eastenders ,,,,,,,,,,,,,,,,,yes freedom is urs as long as you sign up today to ruin your life to make an elitist **** rich off your misery so come on do it do it now buy buy buy its fab be the first to wear the latest dead animal scalped alive to make you a fur coat so u look great be a slave we need your enslaved mind and body to drain like vampires suck u dry and spite you out onto the streets in despair and poverty ,,,,,,,,,,,,,,, if you buy into this scam ur as stupid as it gets dont give these mugs your lives think b4 u sign ur existance over to a bank who will destroy u over a few quid
Report
Please help us to maintain a healthy and vibrant community by reporting any illegal or inappropriate behavior. If you believe a message violates theCode of Conductplease use this form to notify the moderators. They will investigate your report and take appropriate action. If necessary, they report all illegal activity to the proper authorities.
Categories
100 character limit
Are you sure you want to delete this comment?
10 reasons to make MSN UK your homepage (© Microsoft)

more on msn money

msn money poll

New research has found that families are spending an average of £180 on back-to-school supplies for their kids. Does this tally with your experience?

Thanks for being one of the first people to vote. Results will be available soon. Check for results

  1.  
    15 %
    Yes, that sounds about right to me
    584 votes
  2.  
    20 %
    Yes, but I think school supplies are getting more expensive every year
    764 votes
  3.  
    28 %
    No, the cost of new uniforms, stationery and sports kit takes us well past the £200 mark
    1,104 votes
  4.  
    37 %
    No, I wouldn’t spend anything like that amount on the little horrors!
    1,432 votes

Total Responses: 3,884
Not scientifically valid. Results are updated every minute.