Best mortgage rates – October 2021

Mortgages rates are exceptionally low this month as lenders compete to win your business. But the Bank of England has hinted rates could rise before the end of the year. Read on for the best rates, including fees, best remortgaging deals, lowest Buy to Let mortgages, and more.

Finding the best mortgage deal is critical as it will determine how much you can borrow and your monthly repayment costs. You can find a mortgage or review your current deal now by clicking the pink button below – or scroll down for all the latest mortgage rate news.

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Mortgage rates war continues – best deals for October

It looks like the mortgage price war still isn’t over.

Yorkshire Building Society has launched a 2 year tracker mortgage at a rate of 0.78%. It’s available to borrowers with a 35% deposit and has a £995 fee.

Platform (the intermediary mortgage brand of The Co-operative Bank) has launched a 0.79% 2 year fixed deal. You’ll need a 40% deposit to access it. Plus, it has a £1,499 product fee.

And there are still low rates available if you want to fix for longer.

The cheapest 3 year fixed deal is from Nationwide at 0.89%. Again, you’ll need a 40% deposit and it has a £999 product fee.

The cheapest 5 year fixed deal is also from Nationwide at 0.94%. Similarly, you’ll need a 40% deposit and it has an arrangement fee of £1,499. It’s not available if you’re remortgaging. However, if you are remortgaging, HSBC will offer the same rate fixed for 5 years. You’ll still need a 40% deposit and the arrangement fee is £999.

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75-90% LTV mortgages

The lowest rates may be only available for those with sizeable deposits of at least 35%. But there are still good deals to be had at higher loan to values.

For mortgages with a maximum LTV of 75%, NatWest offers a 2 year tracker at 0.82%, with an arrangement fee of £1,495, but it’s only available if you’re remortgaging.

While Halifax offers the lowest rate for a 90% LTV 2 year fixed deal at 1.79%. It has an arrangement fee of £995 and it’s not available if you’re remortgaging.

Browse mortgage rates

Take a look at today’s best rates from lenders and get an overview of mortgage options now.

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Your home or property may be repossessed if you do not keep up the repayments on your mortgage.

Representative example A mortgage of £204,302 payable over 23 years, initially on a fixed rate until 31/12/24 at 1.56% and then on a variable rate of 5.05% for the remaining 18 years would require 62 payments of £881.42 and 214 payments of £1,168.08. The total amount payable would be £305,690 made up of the loan amount plus interest (£100,315) and fees (£1,073). The overall cost for comparison is 3.6% APRC representative.

New sub 1% buy to let mortgage rate

Meanwhile, buy to let landlords can also snap up a mortgage with an interest rate of less than 1%. The Mortgage Works, Nationwide’s buy to let arm, has launched a 2 year fixed deal at 0.99%. However, to get this rate landlords will need a deposit of 35% or more. And the product fee is 2% of the loan amount. Depending on the size of the loan, this could prove to be quite a hefty amount.

This rate is almost matched by Platform, which has launched a 2 year fixed buy to let deal at 1%. It’s available to those with deposits of at least 40% and has a product fee of £2,450.

Should you remortgage now?

Homeowners whose mortgage deals are coming to an end are being urged to remortgage to lock-in a new fixed rate deal. The advice comes on the back of comments from the Governor of the Bank of England, Andrew Bailey, who said recently that with prices soaring and inflation at 3.2%, and rising, the Bank may need to increase the base rate. So remortgaging now and locking in a fixed rate will mean homeowners have certainty about their monthly mortgage payments.

David Hollingworth, from award-winning brokers L&C, said ‘Being able to lock down the cost of what is typically the single biggest household outgoing, at a time when other costs are climbing, will help build resilience into homeowners’ monthly budgeting.’

He also believes it’s only a matter of time before mortgage prices start rising. ‘The more the markets expect a rate rise, the more likely it will feed into higher funding costs for lenders,’ he adds. ‘Lenders have been competing hard to make rates stand out, so profit margins have been cut to the bone.’

For the best remortgage rates speak to a broker who can talk you through the process and the costs involved. They’ll help you find the best deal for you.

Over half of new mortgages will end after borrower turns 65

Some 52% of new homeowner mortgage lending in 2021 is going to borrowers who will not have paid off their home loan before turning 65, a new report commissioned by UK Finance reveals.

Longer mortgage terms and an ageing population are helping to drive the trend towards later life borrowing and it’s the first time this level of lending has been reached in an older age group, UK Finance said.

Also, the report suggests later life mortgage lending is set to become increasingly common.

By comparison, in 2014 only around a third of new homeowner mortgage lending went beyond the age of 65.

You can find more information in our guide mortgages for the over 50’s

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Get fee free mortgage advice from our partners at L&C. Use the online mortgage finder or speak to an advisor today.

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What are mortgage rates?

Mortgage rates are the rate of interest charged by a mortgage lender (bank or building society). The interest is charged by the lender as compensation for the money they have lent them in order to purchase a property.

Interest rates are determined by the lender in most cases, and can be either fixed (ie remain the same for the term of the mortgage) or variable (where they fluctuate with a benchmark interest rate). Before you compare mortgages, you need to understand the different types. For more information see what type of mortgage should I get?

Help finding the best mortgage deal

The best mortgage deal isn’t just about interest rates. You need to consider whether the mortgage term is right for you, arrangement fees and more.

To get a better idea of the best mortgage for you, use our online mortgage service provided by the fee-free mortgage broker L&C.

L&C can compare the latest mortgage deals for you over the phone, or you can do it yourself in real-time online. Whichever you choose they can help search the market to find you the best mortgage deal, see if you qualify and even help you apply online, doing all the legwork to get you your mortgage offer.

Handy tools and calculators

Here’s a selection of practical gadgets and tools to help keep things simple.