Weekly Mortgage Roundup: Top UK Products
Each week, we highlight the most competitive mortgage products available in the UK, comparing them by rate and key features. Below is a representative example and notable rate updates from major lenders.
Representative Example
Example based on a £200,000 mortgage over 25 years:
- Initial fixed rate: 4.70% for 62 months
- Reverting variable rate: 7.34% for the remaining term
- 62 monthly payments of £1,134.49
- 238 monthly payments of £1,401.17
- Total amount payable: £404,946.84
- Includes interest (£203,817), no valuation fees, and product fees of £995
- Overall cost for comparison: 6.4% APRC representative
Rate Reductions for First-Time Buyers
This week, first-time buyers with a 10% deposit received positive news as fixed-rate mortgages up to 90% loan-to-value (LTV) saw rate cuts. NatWest, NatWest International Solutions, and the Royal Bank of Scotland reduced their two-year fixed rates, all featuring a £995 arrangement fee and free valuation.
“Each lender now includes a £250 cashback option on selected products, providing extra help with upfront costs.”
Availability by Region
- NatWest products: Open to borrowers in Great Britain and Northern Ireland directly from the lender.
- NatWest International Solutions: Accessible through intermediaries.
- RBS deals: Available in Great Britain, the Isle of Man, and the Channel Islands.
Additional Fee-Free Options
The same lenders also offer two-year fixed-rate deals at 4.44% with no product fees, retaining identical terms and benefits as the fee-based options.
Author’s Summary
UK mortgage lenders are easing conditions for first-time buyers, cutting fixed rates and adding incentives such as cashback to make homeownership more attainable.