Weekly Mortgage Roundup: Top UK Products
Each week, we review the leading mortgage products available in the UK, focusing on rates and features across all major types and terms.
Representative Mortgage Example
A £200,000 mortgage taken over 25 years starts with a 4.70% fixed rate for 62 months, later switching to a variable rate of 7.34% for the remainder of the term. This arrangement requires 62 monthly payments of £1,134.49 followed by 238 payments of £1,401.17.
- Total payable amount: £404,946.84
- Includes loan principal, interest charge of £203,817, no valuation fees, and product fees of £995
- Overall cost for comparison: 6.4% APRC representative
Latest Rate Reductions for First-Time Buyers
First-time buyers placing a 10% deposit benefit this week as the lowest two-year fixed rates for loans up to 90% LTV have decreased. This follows reductions by NatWest, NatWest International Solutions, and Royal Bank of Scotland (RBS).
- Each lender offers two products charging a £995 arrangement fee with a free valuation included
- One deal per lender includes a £250 cashback, assisting buyers with purchase costs
Availability by Region
- NatWest deals are directly accessible to borrowers in Great Britain and Northern Ireland
- NatWest International Solutions products require an intermediary application
- RBS deals are offered directly to those in Great Britain, the Isle of Man, and the Channel Islands
Fee-Free Alternatives
The same lenders also offer two-year fixed-rate mortgages at 4.44% without any product fees, matching the terms and features of the fee-charging deals mentioned above.
"Each lender offers two deals, all of which charge a £995 arrangement fee and offer the benefit of a free valuation. The extra perk of £250 cashback is also available on one of the deals from each lender."
Author’s summary: Recent rate cuts from major UK lenders create attractive two-year fixed mortgage options with flexible fees and cashback incentives, benefiting first-time buyers with small deposits.