Battle for best rates continues as lenders launch new sub-0.90% mortgages

3 min Read Published: 07 Sep 2021

Battle for best rates continues as lenders launch new sub-0.90% mortgagesThe ongoing mortgage wars have already brought us some of the lowest ever deals on record, but the competition shows no signs of slowing.

Barclays and Nationwide have both launched new 2-year deals below 0.90%, bringing the number of sub-1% mortgages on the market to 21 in total.

In this article, we explain the terms of Barclays and Nationwide's new deals, plus we round up the best 2 and 5-year mortgages, so you can weigh up the competition and decide which one is best for you.

Barclays

Barclays’ new 2-year tracker mortgage comes with a market-leading 0.85% initial interest rate, minimum 60% LTV, and a £999 upfront fee for loans up to £2m. After the 2-year term comes to an end, this deal reverts to the standard variable rate of 3.59% interest, although there are no early repayment charges if you decide to remortgage before that point.

Nationwide

Nationwide’s new 2-year fixed-rate deal has a generous 0.87% initial interest rate for minimum 60% LTV mortgages up to £1m, which also reverts to 3.59% once the introductory offer has ended. It has a higher upfront fee at £1,499, and is subject to early repayment charges of up to 1.50%.

Best 2-year mortgages

Based on a 2-year deal for a property worth £500,000, with a 60% LTV, on a 25 year term.

Lender Initial Interest Rate Monthly Repayment Upfront Fee Type
Barclays 0.85% £1,110 £999 Variable
Nationwide 0.87% £1,113 £1,499 Fixed
Platform 0.88% £1,114 £1,549 Fixed
HSBC 0.89% £1,115 £1,016 Fixed
Santander 0.89% £1,115 £1,259 Fixed
Halifax 0.89% £1,115 £1,695 Fixed
NatWest 0.93% £1,121 £1,025 Fixed
RBS 0.93% £1,121 £1,377 Fixed
NatWest 0.93% £1,121 £1,377 Fixed
RBS 0.93% £1,121 £1,377 Fixed

(Rates correct as of 07/09/2021)

Best 5-year mortgages

Based on a 5-year repayment mortgage for a property worth £500,000, with a 60% LTV, on a 25 year term.

Lender Initial Interest Rate Monthly Repayment Upfront Fee Type
Nationwide 0.94% £1,122 £1,499 Fixed
NatWest 0.98% £1,127 £1,025 Fixed
RBS 0.98% £1,127 £1,377 Fixed
NatWest 0.98% £1,127 £1,377 Fixed
Santander 0.99% £1,129 £1,259 Fixed
HSBC 1.01% £1,131 £1,516 Fixed
Platform 1.03% £1,134 £1,549 Fixed
Halifax 1.03% £1,134 £1,695 Fixed
Santander 1.04% £1,136 £1,259 Fixed
Yorkshire Building Society 1.14% £1,149 £1,885 Fixed

(Rates correct as of 07/09/2021)

More on mortgages

For more of the best mortgages on the market, check out our round-up of the best 80%, 90% and 95% LTV deals.

We've also listed our top apps to help you overpay your mortgage, and if you're considering remortgaging, find out how to review your mortgage in 30 seconds using Habito*.

To stay up to date with all the best mortgage deals, use our mortgage best buy table to calculate the best deal for you.

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