How to beat the Help to Buy mortgage guarantee

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RBS and NatWest are offering a two-year fixed-rate mortgage at an interest rate of 4.99% and a five-year fix at 5.49%. Neither come with fees. Meanwhile, Halifax has announced two two-year fixes. One has a rate of 5.19% and comes with a fee of £995, and the other has a rate of 5.59% but is fee free.

However, Newbury's three-year variable rate is cheaper than the RBS/NatWest deals. It's 4.89%, reverting to 4.95%, with a free valuation and no arrangement fees. Clydesdale Bank and Yorkshire Bank have also undercut the Help to Buy rates on offer, by trimming the interest on their three-year fix from 5.49% to 4.99%. There are no fees and borrowers will receive a free standard valuation and get £250 cashback on completion.

Get help finding the best mortgage for you shows three even lower rates. Cambridge Building Society has a three-year stepped discounted mortgage at 3.99% in year one and 4.89% in years two and three. It comes with a free valuation and fees of just under £500.

Market Harborough Building Society is also discounting its Family Deposit Mortgage to 3.99% for the mortgage term, but this is aimed at young buyers whose parents save with the society. There is a £95 admin fee.

However, while all of these deals won't suit everyone, it's important borrowers understand there are some better deals at 95% LTV available to them other than the Help to Buy mortgage guarantee products.

Get help finding the best mortgage for you

95% LTV mortgages that beat the Help To Buy mortgage guarantee deals on rate

Cambridge Building Society Three-year stepped discount mortgage 3.99% (year one)* £499
Market Harborough BS Family Discount mortgage, discounted for term 3.99% £95
Newbury BS Three-year variable 4.89% n/a
Clydesdale/Yorkshire Bank Three-year fix 4.99% n/a

Note: *4.89% in years two and three