How to beat the Help to Buy mortgage guarantee

Published by Laura Whitcombe on 18 November 2013.
Last updated on 18 November 2013

House and coins

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.

A quick comparison at Moneywise.co.uk 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.

Find the best mortgage for you

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

LENDER MORTGAGE RATE FEES
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

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