This week’s best residential mortgage products

The ebb and flow of mortgage rates mean there’s plenty of jostling for position among the best residential mortgage products this week.

Either new lenders have entered the top spot, or the current best offers have upped in price.

Just last week, Santander, NatWest and Nationwide upped their rates after a flurry of lenders in April went against the grain and sent prices southwards.

Using data from Moneyfacts, YourMoney.com runs through the best options for whether you’re remortgaging, moving home or jumping on the property ladder.

Best remortgage rates

Cumberland Building Society is where to go to utilise the lowest two-year deal on the market. It pays 4.78% and covers up to 60% LTV while coming with a £999 arrangement fee. But, incentives come with a free valuation (up to £750,000) and free legal fees.

Other top options:

1. Loughborough Building Society: This provider pays 4.99% up to 80% LTV for a two-year fix, with a fee of £499 to pay. However, due to a free valuation and a tempting rate, this is Moneyfacts’ ‘best buy’.
2. MPowered Mortgages: With rates getting higher for three-year fixes in the remortgage sector, MPowered takes the lowest rate at 4.59%. This deal can finance up to 60% LTV and a £999 arrangement fee is required too. But, a free valuation and legal fees are part of the offer.
3. Vernon Building Society: The mutual has a Moneyfacts ‘best buy’ thanks to its 4.69% rate that finances up to 80% of your property. Bear in mind this offer is only available if you live in England and Wales.

Best first-time mortgage rate for homemovers

As the lowest two-year fixes rose, Clydesdale tops the charts with a 4.72% rate that finances up to 75% of your property. A high arrangement fee of £1,499 needs to be paid, and no incentives are part of the package.

The next best:

1. First Direct: This Moneyfacts ‘best buy’ is a two-year fix at 85% LTV, has a 5.08% rate and comes with a £490 arrangement fee.
2. Santander: Despite rate rises, it keeps the lowest rate for three-year fixes thanks to a 4.67% rate up to 60% LTV.
3. MPowered Mortgages: Offers the same rate as Santander and, much like the lender, offers a free valuation.

Best first-time buyer mortgages

Clydesdale also sweeps up the best rates for two- and five-year fixes, charging 5.19% and 4.64%. Both contain a £1,499 arrangement fee with no incentives in either deal.

Leading alternatives:

1. First Direct: The lender offers an enticing five-year fix for 4.88%, with no product fees and a free valuation as an incentive.
2. Hanley Economic Building Society: If you want a smaller deposit (5%), this Moneyfacts ‘best buy’ has a 5.49% rate and has no product fees. Further, free valuations up to £250,000 are included, and £310 is on offer to contribute to valuations over that amount.
3. Family Building Society: This is the lowest five-year fix at 4.89% and means buyers need security from a family member in the form of their own savings or their property. It charges £599 as a completion fee, offers a free valuation for a home worth up to £500,000 and even has a £250 cashback incentive.