Representative Example: £150,000 mortgage over 25 years initially at 1.42% fixed for 37 months reverting to 4.74% variable for term. 37 monthly payments of £594.28 and 263 monthly payments of £821.60. Total amount payable £239,439.16 includes loan amount, interest of £88,069, valuation fees of £235 and product fees of £995. The overall cost for comparison is 4.0% APRC representative.
Our team of experts have chosen those mortgages they believe to be Best Buys.
A selection of those, for which we have arranged links are shown above, whilst
products shown with a yellow background are sponsored products.
Credit will be secured by a mortgage on your property. YOUR HOME MAY BE REPOSSESSED IF
YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE. Written quotations are available from
individual lenders. Loans are subject to status and valuation and are not available to
persons under the age of 18. All rates are subject to change without notice. Please
check all rates and terms with your lender or financial adviser before undertaking
Before you start your mortgage comparison, make sure you're certain of what you're looking
for - that way you won't get lost looking for the best mortgage deals out there.
Remember that the mortgage you choose is going to have an impact on your
monthly finances for a number of years, so it's important to shop around for
the best mortgage deals.
Make sure you've considered the following before starting your mortgage search.
When you compare mortgages, there are two main types of mortgage interest rate to keep in mind:
Fixed rate mortgages can be great if you'd rather know what you'll be
paying, or if you're on a tight budget and can't afford for your payment to
go up. Fixed rate mortgages often have the best mortgage rates. Learn more about fixed rate mortgages with our fixed rate mortgage guide.
Variable rate mortgages may be for you if you don't mind taking the chance
of your payment going up. However, if finding the lowest mortgage rate is important to you, you could end up paying
much less in interest. Before you compare variable rate mortgages, be sure to read
Standard Variable Rate Mortgages, Tracker Mortgages or Discounted Mortgages mortgage guides.
Only consider a variable rate mortgage if you can afford a payment that's
quite a bit higher than you are quoted at the outset. Variable rates can go
up as well as down - your payment could increase by hundreds of pounds later
on, so make sure you can cover this.
Most mortgages are set up on a repayment basis which means that you repay
the loan and the interest as you go along. This guarantees that the loan is
repaid at the end of the mortgage term. With an interest only mortgage you
just pay the interest each month but none of the actual loan. So you need a
separate method to save up enough to be able to repay the whole loan at the
You should aim to set your mortgage term for as short a period as possible
as you will not pay as much interest. However, a shorter term does mean
higher monthly payments (assuming you have a repayment mortgage). A longer
term mortgage will reduce the monthly payments, but mean you pay more
Most fixed or discounted variable rate apply for an initial period. This
is typically 2,3 or 5 years, but could be longer. When considering the term
you should also think about how long you would like this initial deal period
to run for. At the end of this initial term you'll need to find another
mortgage to make your repayments as low as possible. This is known as
'remortgaging'. Shorter introductory mortgage rates might be attractive, but
remember that your payments will probably increase when the initial deal
ends. The shorter your initial term, the more times you'll need to
remortgage, potentially paying mortgage fees each time.
Longer term fixed rates have their pitfalls as
well as, if rates go down, you could end up paying over the odds for your
mortgage, while others enjoy lower mortgage rates. Although this is unlikely in the
current low interest environment.
The deposit you have to put down (or equity you already have in your home)
plays a crucial part in the best mortgage rates you can
The higher the mortgage in relation to the value (or purchase
price) of your home (LTV), the greater the risk to the mortgage lender. The greater
the risk to the mortgage lender, the higher the rate you'll pay.
You'll see that the mortgages in our Best Buy tables all state a maximum
LTV - this is the highest possible proportion of borrowing against property
price or value that you can have on that mortgage. You can learn more about loan-to-value with our
A mortgage that allows you to overpay, underpay, take payment breaks
and/or borrow back money is often referred to as a flexible mortgage.
If you think you'll want to overpay, or to have the option to pay less or
suspend your payments later (during a planned sabbatical for instance),
you'll need to make sure your mortgage will allow this.
Another thing to consider, if you're thinking of moving in the next few
years, is a portable mortgage that allows you to
take your borrowing from your current home to the next.
A portable mortgage means that, because you don't have to finish one
mortgage and start another one, you can avoid having to pay both an Early Repayment Charge on one mortgage
and set up fees on a new one (although there will normally be a porting fee,
this will be a lot less that the fees you would have to pay if taking out a
There are several reasons you might consider using a mortgage broker or mortgage advisor - not least because it can transition the stress of finding the best mortgage rate onto a third party. The most compelling reasons to use a mortgage broker are; you have more legal protection if you are missold a mortgage, your broker will most likely be more qualified to find a mortgage than you are, and finall, a broker has a responsibility to find the best mortgage deals on the market. To learn more about mortgage brokers, read our mortgage broker guide
As you can see, mortgages can be very complicated and we recommend that
you use an independent mortgage
adviser to get the very best deal for your own personal
Compare 2 year fixed rate mortgages Compare 3 year fixed rate mortgages Compare 5 year and over fixed rate mortgages Compare variable and tracker rate mortgages Compare discounted rate mortgages Compare buy to let mortgages
Search all mortgages Mortgage repayment calculator How much can you borrow calculator Mortgage
guides Mortgage terminology jargon buster
80% LTV Mortgages
85% LTV Mortgages
90% LTV Mortgages
95% LTV Mortgages
100% LTV Mortgages
Please send me emails with the latest Moneyfacts news, best buy products and specially selected third party offers
Mortgage repayment calculatorWork out how much your mortgage repayments will be.
How much can I borrow calculator?Work out what your monthly mortgage payments are likely to be based on how much you want to borrow over the mortgage term.
Many of those coming to the end of a fixed mortgage term revert to their lender’s SVR, and in doing ... More
After years of saving for a deposit, months of hunting for the dream home and countless hours spent ... More
Taking that first step on the housing ladder can be tricky, not least because of the deposit require... More
Whether you’re trying to get on or move up the housing ladder, saving a suitable deposit is key. Ind... More
Years of mortgage rates falling to record lows means borrowers have never had it better, but unfortu... More
Find out how to choose the best estate agent in this guide. We look at practical ways to shortlist, ... More
Mortgage valuations shouldn’t be confused with a property survey. You should consider having a surve... More
What is your relationship with your mortgage? Are you repaying it off as quickly as you can – are yo... More
Yorkshire BS has reduced rates on selected mortgage products, which sees its three-year fixed rate d... More
Leeds BS has reduced numerous fixed rate mortgages in its range and has launched a brand new three-y... More
West Brom BS has reduced the rate on its five-year fixed mortgage by 0.05%, which has earned it a hi... More
TSB has reduced selected mortgage rates by 0.10%, including its five-year fixed deal, which now boas... More
Chelsea BS has launched a new two-year variable tracker rate mortgage, which boasts the lowest rate ... More
Moneyfacts.co.uk will, like most other websites, place cookies onto your computer’s
hard drive. This includes tracking cookies.