Take advantage of ultra-low mortgage rates and save
Fixed-rate mortgages are very popular, and it's easy to understand why. They provide you with certainty – you know that for the length of your fixed-rate period, your repayments will remain exactly the same each month, no matter what the Bank of England does with the Base Rate.
However, knowing that you want to fix your mortgage rate is only half the decision. You need to work out how long you want to fix for too.
It looks like the market for two-year fixed deals is hotting up now that HSBC has launched a 0.99% loan. The deal is available to borrowers with a minimum 35% deposit.
However, there is a £1,499 product fee to consider, so it's worth looking at all your options before diving in. Check out the best buy table below that shows the best deals with product fees under £500.
Two-year fixed-rate mortgages are the cheapest, but you only have certainty about your mortgage payments for a short period of time. If you want the added security of a five-year fixed rate, you'll pay a premium in the form of a higher interest rate.
Long-term fixed rates also come with much higher Early Repayment Charges, so you might need to take that into account too.
Top two-year fixed-rate mortgages
First, let's look at the two-year fixed-rate mortgages with the lowest rates around. Be warned, nabbing a tiny interest rate usually means you'll have a stump up a hefty product fee.
Lender | LTV | Interest rate | Product fees |
60% | 1.21% | £1,995 | |
65% | 0.99% | £1,499 | |
70% | 1.34% | £1,499 | |
75% | 1.33% | £1,995 | |
80% | 1.48% | £1,499 | |
85% | 1.58% | £1,880 | |
90% | 1.99% | £1,499 |
As you can see, there are some mammoth fees there. But what if you don't want to stump up a significant product fee? These are the best mortgages with fees under £500.
Lender | LTV | Interest rate | Product fees |
Progressive BS | 60% | 1.74% | £0 |
Norwich & Peterborough BS | 65% | 1.49% | £195 |
70% | 1.84% | £0 | |
Norwich & Peterborough BS | 75% | 1.74% | £195 |
80% | 1.95% | £0 | |
85% | 2.10% | £199 | |
90% | 2.49% | £0 |
Three-year fixed-rate mortgages
If you want certainty about your mortgage repayments for a little bit longer, a three-year fixed-rate mortgage may be a better option. First, let's take a look at the deals with the smallest interest rates.
Lender | LTV | Interest rate | Product fees |
60% | 1.74% | £1,499 | |
65% | 1.78% | £1,545 | |
70% | 1.94% | £1,499 | |
75% | 1.94% | £1,589 | |
80% | 1.99% | £698 | |
85% | 2.14% | £1,499 | |
90% | 2.67% | £1,495 |
And now let's take a look at the best deals with a fee of under £500.
Lender | LTV | Interest rate | Product fees |
Progressive BS | 60% | 1.99% | £0 |
65% | 2.24% | £0 | |
70% | 2.25% | £195 | |
75% | 2.19% | £199 | |
80% | 2.24% | £475 | |
85% | 2.39% | £199 | |
90% | 2.97% | £0 |
Five-year fixed-rate mortgages
If you want to go for a longer-term fixed rate deal, then you may prefer a five-year fixed-rate deal. While you enjoy that security for longer, you may have to pay a premium in terms of a higher rate. You also have significant Early Repayment Charges to consider should you wish to leave the deal early.
Lender | LTV | Interest rate | Product fees |
60% | 2.12% | £995 | |
65% | 1.99% | £1,499 | |
Danske Bank | 70% | 2.32% | £999 |
75% | 2.23% | £1,495 | |
80% | 2.43% | £1,495 | |
85% | 2.58% | £1,499 | |
Norwich & Peterborough BS | 90% | 2.93% | £1,295 |
And now let's take a look at the best deals with a fee of under £500.
Lender | LTV | Interest rate | Product fees |
60% | 2.29% | £195 | |
65% | 2.44% | £188 | |
Danske Bank | 70% | 2.57% | £0 |
75% | 2.54% | £195 | |
80% | 2.63% | £195 | |
85% | 2.74% | £195 | |
Danske Bank | 90% | 3.28% | £0 |
Looking for a mortgage? Compare rates and fees at a glance