Home owners have short window of opportunity to remortgage

Co-op/Britannia has some very competitive loans including a five year fix at 4.19% as well as a lifetime tracker at Bank Base Rate plus 1.99% giving a pay rate of 2.49%.  You have to hold a Co-op Bank current account to be eligible for this deal – but it is probably worth switching banks to qualify.  Loans up to 75% of the property’s value are available and there is no arrangement fee.  For full details of all mortgages on offer visit  or  

You can get a cheaper lifetime tracker if you have plenty of equity in your home.   First Direct’s lifetime tracker also has no penalties for switching so if a fixed rate looks a better bet a year or so down the line you are free to move.  The First Direct deal is at Bank Base Rate plus 1.79% giving a pay rate of 2.29% with a fee of £99.  But you will need at least 35% deposit to qualify. 

Rate rise threat

For those worried about rate increases who want to the certainty of a fixed rate, two-year fixes remain the cheapest.  First Direct has a two year fix at 2.99% with a fee of £99.  But this could leave you vulnerable to an enforced switch two years down the line – just as mortgage rates are moving up.  If you decide to go for a fix it is probably better to settle for five years.

The best five year fix is now 4.09% from Ing Direct with a fee of £945.  But maximum loan is just 60%.  For those with a deposit of 25% Co-op Bank has a five year fix at 4.19% with a fee of £999 and Yorkshire Building Society has a ten year fix at 4.99% with a fee of £995.  Less than 40% of lenders’ SVRs are now lower than 4.99%.  For those with only a 15% deposit Co-op Bank has a five year fix at 5.49%.

Buy-to-let

Things are improving for buy-to-let investors too.   Leeds Building Society has just reduced its two-year fixed rate buy to let mortgage, which is available from only 4.89%.  The product has a flat fee of £999 and allows 10% capital repayments each year, without penalty, and there is no higher lending charge.  You can apply at a branch or online at .  

Nearly all the buy-to-let deals are short term whether they are fixed or trackers.  Best buy for a two-year fix is Leek United Building Society two year fix at 4.58% with loans up to 60% and a flat fee of £995.  For those who need a larger 70% loan the Mortgage Works has a two year fix at 4.99% - but this has a hefty fee of 3.5% of the sum borrowed