|providers||rating||Initial interest period||Product fee|
|Buckinghamshire Building Society||2.74% reduced variable||2 years||0 €|
|Mansfield Building Society||3.05% discounted variable||3 years||£ 199 each|
|Barclays Mortgage Mort||3.25% fixed||5 years||0 €|
|Building society Tipton & Coseley||3.39% discounted variable||0 €|
Guarantee mortgages are mortgages where first-time buyers have a guarantor, usually a close family member, who puts money or assets as collateral for the mortgage. Here we looked at the lowest interest rates on the guaranteed mortgage charts.
The Buckinghamshire Building Society had the lowest discounted two-year variable guarantee mortgage this week. The two-year contract offers an interest rate of 2.74% (4.5% APRC) floating for two years, after which it drops back to 4.75%. This offer is available at 100% LTV but is backed by a fee on parent or grandparent property. To qualify for this deal, the buyer must purchase property in the Buckinghamshire area or have parents or grandparents residing in Buckinghamshire or being members of the Buckinghamshire Building Society 12 months prior to the mortgage application. There are no product fees or incentives with this deal.
The Mansfield Building Society offers a 3.05% (4.9% APRC) discounted variable rate for three years, after which it falls back to 5.35%. This deal is available at 100% LTV, but family members must provide a security deposit equal to 20% of the value of the property purchased, either as a cash saving or as equity on the family member’s home, which is held for seven years. The savings option is not available to residents of Scotland. This offer calls for £ 199 in product fees and includes the incentive of £ 400 cashback.
Barclays Mortgage offers a fixed rate of 3.25% (2.9% APR) through January 31, 2026, which then reverts back to 2.59% floating rate. This deal is available at 100% LTV, but the Barclays Helpful Starter Account must be completed and a deposit equal to 10% of the property purchase price received. The helpful starter account must remain open for a period of at least five years from the time it is signed or until it has been redeemed in full, whichever comes first. There are no product fees with this deal and a free appraisal is offered on properties valued at £ 2 million or less.
Tipton & Coseley Building Society is offering a 3.39% discounted variable rate (at 2.99%) on a deal available to those looking for a 100% LTV. A family member’s property is secured with a security that is released once the loan falls below 75% LTV. There are no product fees or incentives with this deal.