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The table below illustrates the best mortgage rates available on the market. These products are dependent upon certain criteria including but not limited to loan size, loan to value and personal income.

For a more personalised response regarding the feasible rate for your specific situation, speak with an expert.

This is a sample of purchase and remortgage products available on May 15th, 2024.

Residential Best Mortgage Rates

Type Initial Rate Subsequent Rate APRC* Arrangement Fee
2 Year Fixed 4.67% 8.74 % 8.2 % £999 Enquire Now
2 Year Tracker 5.39 % 8.74 % 8.4 % £999 Enquire Now
2 Year Discounted Variable 4.99 % 8.24 % 7.9 % £995 Enquire Now
3 Year Fixed 4.49 % 8.74 % 7.8 % £999 Enquire Now
5 Year Fixed 4.37 % 8.74 % 7.1 % £999 Enquire Now
10 Year Fixed 4.82 % 7.99 % 5.9 % £999 Enquire Now

Investment Best Mortgage Rates

Type Initial Rate Subsequent Rate APRC* Arrangement Fee
2 Year Fixed __________ 4.58 % 7.6 % 7.5 % £3,999 Enquire now
5 Year Fixed  4.23 % 7.6 % 6.7 % £3,999 Enquire now

 

Please note, the FCA (Financial Conduct Authority) does not regulate some forms of Buy-To-Let.

There are a number of factors, in addition to the interest rate, which affect the cost of borrowing, such as arrangement fees, early repayment charges and other set-up costs. When compiling this selection we have taken these other factors into consideration. Examples are based on a property price of £1,000,000 and each product’s respective maximum loan-to-value, or a loan of £500,000. For bespoke mortgage advice and a recommendation, please call or e-mail using the details above.

APRC* = Annual Percentage Rate of Charge

Securing the right mortgage for you


Your mortgage is likely to be your most significant financial commitment, so it is crucial to choose the option that best suits your needs. With thousands of mortgage rates available, some which may only be accessible with the support of an intermediary, finding the right deal to meet your present and future requirements can be a complex journey.

Private Finance empowers you to easily compare mortgage rates from across the market. Their comprehensive approach ensures you can confidently secure the best deal that aligns suitably with your needs.

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Million pound mortgages

What are the different mortgage types?

In a higher interest rate environment and fast changing mortgage market, it can be tough to know whether it is better to fix your mortgage or choose a more flexible variable rate option. Fixed and variable rate mortgage both have their benefits and drawbacks, and where one option may be suitable for one person, it may not be suitable for the other.

We outline some of the main features.

Fixed rate mortgage

With a fixed-rate mortgage, the interest rate remains the same for a set period, typically between two and five years. Longer rates are available but are less common. During the fixed rate period, your monthly repayments will remain the same, regardless of any changes to the Bank of England base rate.

Advantages:

  • Certainty – The monthly mortgage payments will always be the same for the length of the product, regardless of interest rate movements

Disadvantages:

  • Inflexibility – You will usually have to pay an early repayment charge (ERC) if you leave the product early.

Variable rate mortgages

With a variable rate mortgage, the interest rate can fluctuate based on changes in the economy or the financial market, which means that the borrower’s monthly payments may increase or decrease over time.

Tracker rates

Tracker mortgages, also known as variable rate trackers, are a flexible type of mortgage where the interest rate payable is linked to the Bank of England base rate. This means your mortgage repayments can go up or down.

The interest rate you pay will be the Bank of England base rate with a set percentage added on top, depending on the type of deal from the lender.

Discounted rate mortgages

A discount variable rate mortgage offers a discount on the lender’s standard variable rate (SVR) for a certain period. The SVR is set by the lender and can change at their discretion. The discount rate can change along with the lender’s SVR.

This is slightly different from a tracker mortgage in that the prevailing rate does not necessarily follow the bank of England’s base rate movements.

Variable Rates: Advantages and disadvantages

Advantages

  • Possibility to lower total payments – You may be able to reduce the total mortgage repayments if the rate remains low for a substantial period of time compared to a fixed rate mortgage.
  • Flexibility – These mortgages typically offer more flexibility, as borrowers may be able to make additional payments or pay off their mortgage early without incurring penalties. This can be particularly useful for borrowers who expect to receive a windfall or who want to accelerate their repayment schedule.

Disadvantages

  • Higher risk – A variable rate mortgage is riskier than a fixed rate mortgage as the mortgage repayments fluctuates depending on the wider economic and financial market. Your monthly repayments may increase and fluctuations can make it hard to budget for.

Buy-to-let Mortgages

Choosing a fixed or variable rate for your buy-to-let mortgage is more complex. Lenders carry out a stress test for fixed and variable rates to work out the maximum borrowing. These stress rates vary depending on which product you select, with a 5-year fixed typically being the most favourable – you may be allowed to borrow more if you fix your mortgage for longer. In some instances, you may be able to use your earned income to further enhance this calculation and borrow more against an investment property.

If you are a landlord or would like to know more about how much you can borrow, our consultants can help you calculate the numbers while also considering your individual circumstances.

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Other types of mortgages

As well as standard fixed and variable rate mortgages, there are other options available for you to consider.

Standard variable rate mortgage

A standard variable rate (SVR) mortgage is a type of mortgage where the interest rate is set by the lender and can vary over time. SVR mortgages are often the default rate that borrowers move to once their initial fixed or discounted rate period ends. Borrowers on an SVR mortgage are likely to be paying more interest than necessary.

Interest-only mortgages

An interest-only mortgage allows you to pay only the interest charges on the loan for a specified period. The monthly payments are lower compared to a repayment mortgage since you’re not repaying the principal amount during the interest-only period.

At the end of the interest-only period, you will still owe the original loan amount. Therefore, you will need to have a suitable repayment strategy in place to repay the principal, such as investments, savings, or selling the property. It’s crucial to carefully consider the affordability and risks associated with an interest-only mortgage.

Offset mortgages

With an offset mortgage, the balance of your savings and current accounts is offset against your outstanding mortgage debt, reducing the amount of interest you pay on the mortgage.

This can enable you to clear their mortgage more quickly and pay less interest in the long run, while retaining access to savings in case of emergency.

Offset mortgages tend to have slightly higher interest rates compared to standard mortgages. However, the potential interest savings from offsetting your savings can often outweigh the higher interest rate, making it a cost-effective option for many borrowers.

Comparing Mortgages with Private Finance


Determining the best mortgage type for you will ultimately depend on your individual circumstances, goals and appetite for risk.

The best way to be satisfied that you have accounted for every factor when choosing your mortgage is to speak with a qualified mortgage consultant. They will take the time to understand your unique circumstances and will use their up-to-the-minute, expert understanding of the mortgage market to provide you with a recommendation of the type of product that is best suited to you.

If you would like to discuss your mortgage options with a qualified professional, you can speak to one of our mortgage advisors on an obligation-free basis or alternatively by emailing us at info@privatefinance.co.uk

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A man comparing the best mortgage rates with a mortgage broker.
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