Best Mortgage Rates - Mortgage Comparison | moneyfacts.co.uk

Compare the Best Mortgage Rates

  - Our whole of market search & independent best buy tables will help you compare the best mortgage rates available.

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Compare the Best Mortgage Deals

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RateAPRCMortgage TypePeriodMax LTVERCSearch all
5224 mortgages
   
 2 Year Fixed  

1.22% reverting to 4.24% 3.8% Fixed30/11/201975%To 30/11/2019Details...
Speak to an Adviser
 
  Product Fee: Arrangement £495 

1.23% reverting to 4.24% 3.8% Fixed30/11/201980%To 30/11/2019Details...
Go to Site
 
  Product Fee: Arrangement £995 

1.73% reverting to 4.24% 3.8% Fixed30/11/201985%To 30/11/2019Details...
Go to Site
 
  Product Fee: None 
  Sponsored Products  

1.79% reverting to 4.70% 4.3% Fixed31/12/201980%1st 2 yrs Details...
Go to Site
 
  Product Fee: Arrangement £999 

1.89% reverting to 4.70% 4.2% Fixed31/12/201980%1st 2 yrs Details...
Go to Site
 
  Product Fee: None 

1.39% reverting to 3.69% 3.4% Fixed31/12/201970%To 31/12/2019Details...
Go to Site
 
  Product Fee: Booking £999 

1.39% reverting to 4.54% 3.9% Fixed01/01/202065%To 01/01/2020Details...
Go to Site
 
  Product Fee: Arrangement £995 

2.24% reverting to 3.69% 3.5% Fixed2 years75%1st 2 yrs Details...
Go to Site
 
  Product Fee: None 

1.49% reverting to 3.74% 3.4% Fixed2 years75%1st 2 yrs Details...
Go to Site
 
  Product Fee: Reservation £999 

1.65% reverting to 3.75% 3.5% Fixed29/02/202085%To 29/02/2020Details...
Go to Site
 
  Product Fee: Booking £995 

2.35% reverting to 3.75% 3.6% Fixed29/02/202060%To 29/02/2020Details...
Go to Site
 
  Product Fee: None 
  
 3 Year Fixed 

1.45% reverting to 4.24% 3.6% Fixed30/11/202075%To 30/11/2020Details...
Go to Site
 
  Product Fee: Arrangement £995 

1.63% reverting to 4.24% 3.5% Fixed30/11/202080%To 30/11/2020Details...
Go to Site
 
  Product Fee: Arrangement £995 
  Sponsored Products  

2.49% reverting to 4.70% 4.2% Fixed31/12/202080%1st 3 yrs Details...
Go to Site
 
  Product Fee: None 

2.59% reverting to 4.70% 4.2% Fixed31/12/202085%1st 3 yrs Details...
Go to Site
 
  Product Fee: None 

2.09% reverting to 3.69% 3.3% Fixed31/12/202085%To 31/12/2020Details...
Go to Site
 
  Product Fee: None 

1.69% reverting to 4.54% 3.8% Fixed01/01/202170%To 01/01/2021Details...
Go to Site
 
  Product Fee: Arrangement £995 

1.69% reverting to 3.74% 3.4% Fixed3 years75%1st 3 yrs Details...
Go to Site
 
  Product Fee: Reservation £999 
  
 5+ Year Fixed 

2.11% reverting to 4.24% 3.5% Fixed30/11/202285%To 30/11/2022Details...
Go to Site
 
  Product Fee: None 
  Sponsored Products  

2.49% reverting to 4.70% 4.0% Fixed31/12/202275%1st 5 yrs Details...
Go to Site
 
  Product Fee: Arrangement £999 

2.59% reverting to 4.70% 3.9% Fixed31/12/202285%1st 5 yrs Details...
Go to Site
 
  Product Fee: None 

1.79% reverting to 3.69% 3.1% Fixed31/12/202260%To 31/12/2022Details...
Go to Site
 
  Product Fee: Booking £749 

2.09% reverting to 4.54% 3.5% Fixed01/01/202370%To 01/01/2023Details...
Go to Site
 
  Product Fee: None 

1.99% reverting to 3.69% 2.9% Fixed5 years75%1st 5 yrs Details...
Go to Site
 
  Product Fee: None 

2.49% reverting to 3.74% 3.2% Fixed5 years75%1st 5 yrs Details...
Go to Site
 
  Product Fee: Reservation £999 

2.48% reverting to 3.75% 3.6% Fixed28/02/202370%To 28/02/2023Details...
Go to Site
 
  Product Fee: Booking £995 

1.83% reverting to 3.75% 3.2% Fixed28/02/202360%To 28/02/2023Details...
Go to Site
 
  Product Fee: Booking £995 
  
Compare
Last Updated: Thursday 19 October 2017 17:52

Representative Example: £150,000 mortgage over 25 years initially at 1.45% fixed for 37 months reverting to a tracker rate of 4.24% variable for term. 37 monthly payments of £596.39 and 263 monthly payments of £784.98. Total amount payable £229,756.17 includes loan amount, interest of £78,516, valuation fees of £0 and product fees of £995. The overall cost for comparison is 3.6% 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.

Disclaimer: 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 any borrowing.

 

Looking for the best mortgage rates? You’re in the right place! Our Best Buys give you an instant, impartial overview of the top deals from the best mortgage lenders in the market, so you can be sure you’re getting a rate that will keep your budget in check. But how can you be sure you’re getting the deal that’s right for you? First, you need to know what type of mortgage rate you need, so you’ll be better able to make an informed decision.

On this page:

  1. What type of mortgage rate is best?
  2. What type of mortgage are you looking for?
  3. How do you want to pay for your mortgage?
  4. How long should your mortgage term be?
  5. How much deposit/equity do you have for your mortgage?
  6. Should you use a mortgage broker?
  7. Which mortgage is best for me?
  8. How do I get a good rate on a mortgage?
  9. Best Buys
  10. Tools and Guides
  11. Find a mortgage by LTV

What type of mortgage rate is best?

Fixed rate mortgages

A fixed rate mortgage has a set term and a rate that’s guaranteed for the length of that initial period. This means you know exactly how much you’re paying and can plan your budget effectively, safe in the knowledge that your repayments won’t change for the foreseeable future (unlike with a variable rate mortgage, where rates can fluctuate according to market and lender conditions).

You’ll be able to find fixed rate deals for a range of terms depending on your requirements, often starting from two years but rising to five years and beyond. There is even a growing number of 10-year mortgages available, giving people the chance to guard their repayments against uncertainty for a whole decade.

As with all types of mortgages, you’ll be able to find fixed rate mortgages at a range of loan-to-values (LTVs), depending on your deposit and/or level of equity (LTV refers to the percentage of the house price that you’re covering with a mortgage, and therefore the amount left to pay off after accounting for your deposit/equity). The LTV you have will typically determine the rate you’re given – generally, the lower the LTV, the lower the rate, so it’s worth saving as big a deposit as possible, particularly if you’re a first-time buyer.

It’s worth pointing out that fixed rate mortgages tend to come with higher rates than their variable counterparts, but as covered below, this is often a small price to pay for the security that fixed mortgage interest rates can offer. Looking for that kind of security? You can find the best fixed rate mortgages using our Best Buys.

Variable rate mortgages

Variable mortgage rates, unlike their fixed counterparts, aren’t set in stone and could change at any time, often depending on the Bank of England’s base rate or wider economic conditions. The lender can change the rate offered as it sees fit, although there may be some caveats to that – some deals will cap the rate at a certain level, for example, while others are known as tracker mortgages and will track set indices (usually the base rate, but it could be something else) at a set margin.

This means your repayments aren’t set in stone either, and are liable to change depending on rate movements. They could go down as well as up, but just remember that if mortgage rates are low, they’re not likely to fall much further, which is why it’s wise to be particularly prepared for a rise in repayments when you see record low rates.

Variable rate mortgages typically have lower rates than their fixed rate counterparts and can therefore be cheaper overall, but they come with far less security as the rates aren’t guaranteed. For some, this trade-off will be worth it – those who have a relatively low mortgage balance, for example, who may not notice their repayments change too much if rates were to rise, and likewise those with plenty of disposable income who could comfortably absorb any rise in repayments. However, for others, the lack of security could prove difficult, in which case a fixed rate mortgage may be prudent.

Note: we’re referring here to the variable rate mortgages that can be found in our Best Buys, not those offering the lender’s Standard Variable Rate (SVR). SVRs are usually far higher than anything else on the market and are typically what a borrower reverts to once an initial fixed or discounted rate period ends, which is why remortgaging should always be considered at the end of such a period.

Tracker mortgages

Tracker mortgages are a subset of the variable rate mortgage mentioned above, whereby the mortgage rate will track a certain indices – typically base rate – and can change accordingly. This could mean that, if base rate goes up, so will the tracker rate, and vice versa. Tracker rates often apply for an initial duration, after which the rate could revert to the lender’s SVR, at which point it might be a good time to remortgage.

Currently, tracker mortgage rates tend to be lower than fixed rates, for the simple reason that base rate is so low. However, it’s important to remember that rates can go up as well as down, which means a rate that looks better than a fixed option right now could end up becoming more expensive over time. As with any mortgage rate, it’s important to compare the different Best Buy charts to be sure you’re making the right option.

Offset mortgages

Many mortgage lenders have an offset option as part of their range; you can find the offset mortgages available for your needs by using our mortgage calculator and filtering accordingly. This type of mortgage might be an option for those with a decent savings pot who are unimpressed by the current rates of interest on offer.

With an offset mortgage, you’re able to use your savings to reduce your mortgage payments by ‘offsetting’ it against your mortgage, thereby reducing the balance you pay interest on. You don’t lose your savings in the process, as you would if you were to overpay a mortgage or put down a greater deposit, but instead agree to put your funds aside and forego any interest you might have otherwise earned on the money.

For example, if you had a £125,000 mortgage balance and £25,000 in a linked savings account, your monthly mortgage interest would be calculated on the amount of £100,000 rather than the full balance, resulting in lower repayments. If you then switch to a different mortgage, you can get the £25,000 back to put in a savings pot that does pay out savings interest.

Depending on the state of the savings market, and the deal you can get on an offset mortgage, this might reduce your repayments by a greater amount than you would otherwise have been able to earn in savings interest. Always compare mortgage rates across the whole market before making a decision, as rates may be less competitive in this sector due to its lower profile.


What type of mortgage are you looking for?

Remortgage

If you’re coming to the end of a fixed or variable mortgage term or have had enough of paying your lender’s SVR, you may want to consider remortgaging. If you look at the best remortgage deals, you’ll find that they usually pay better rates than the SVR, regardless of whether you are after a fixed or a variable remortgage rate.

Of course, you’ll first want to check the terms of your current mortgage to be sure that remortgaging is an option. Your current mortgage provider may charge a fee before they will allow you to change to a different deal, but this may be worth it if you can significantly reduce your mortgage repayments in the process.

Usually such a fee is only payable if you repay your mortgage within an initial period, so it’s normally best to wait until then to avoid paying unnecessary fees. And don’t forget to check your own provider for remortgage rates, as they may be inclined to make the process easier for you if you are staying with them, and therefore may offer lower rates or fees.

Keep an eye on our mortgage news pages, too; should mortgage rates be lower than usual, there’s a good chance that you’ll be able to get a good remortgage deal, because the rates on offer are bound to be lower than when you originally took out your mortgage.

So once you’ve secured your first mortgage, and certainly as you approach the end of your initial period, keep an eye on the best remortgage rates to see if there is an attractive deal that can tempt you to step away from your current mortgage provider. You don’t have to wait to buy a new house to get a better rate on your mortgage!

First-time buyer mortgages

It’s difficult to get a big enough deposit together to take that first step on the housing ladder, especially as house prices continue to rise, which is where first-time buyer mortgages come in. These deals are typically offered at LTVs of 90 to 95% to help those who only have enough saved up for a 5 or 10% deposit.

As providers are taking on extra risk by lending at such a high LTV, the rates on offer cannot be considered the best mortgage rates available, but they can be a lifesaver for those looking to buy their first property. Just bear in mind that you’ll be facing higher repayments than if you could cobble together a bigger deposit – if you can, it may be worth waiting until you can secure a lower LTV. Use our mortgage calculator to compare the different rates.

Buy-to-let mortgages

Buy-to-let (BTL) mortgages are a specialist type of mortgage for those who are or want to be landlords. They have much stricter lending criteria and require even more upfront research than a normal mortgage would warrant, which is why it’s best to seek independent financial advice before choosing to become a landlord. BTL mortgages have their own separate section on this website, with plenty more specific information in our guides.


How do you want to pay for your mortgage?

When deciding how to pay for your mortgage, you generally have one of two options – you can apply for an interest-only deal, or opt for full repayment.

Repayment mortgages - Repayment mortgages are designed so that, by the end of the mortgage term – which can range from 25-35 years and beyond – you’d have paid off the full balance plus interest. Your repayments will be calculated accordingly, and while they’ll be higher than if you had an interest-only deal, you can be confident that you’ll have paid off everything by the end of the term.

You may even be able to shorten your mortgage term if you make overpayments, which will also reduce the amount of interest you pay. Remember, too, that when you pay off more capital you’ll be able to move down the LTV scale, enabling you to secure lower rates and, therefore, lower repayments. These are the only type of mortgages we cover on our Best Buys.

Interest-only mortgages - Interest-only deals are far less common these days, but there was a time when people chose to opt for such mortgages in droves. With this type of mortgage, your repayments are generally lower, but only because you’re not actually repaying the balance of the loan or increasing your equity. All you’re repaying is the interest on the mortgage, which means that at the end of the term, you’ll still be left with the full balance of your initial loan. You’d have paid no more than your deposit towards the house, and will therefore have to come up with a lump sum to pay off your debt.

Many people once banked on rising house prices to help them do that – they were hoping to sell their home at a higher price than when they first bought it, which would have theoretically covered their mortgage. However, the financial crisis and rapidly falling house prices meant that often didn’t happen. Similarly, others banked on pensions, endowment funds or savings, but poor investment returns left many far short of the sum needed. This is why such deals are now so few and far between – they’re often only used in the buy-to-let sector, with full repayment the preferred choice for residential mortgages.


How long should your mortgage term be?

Ideally, you should aim to set your mortgage term for as short a period as possible, as that way you won’t pay as much interest – although it does mean higher monthly payments. Conversely, a longer term mortgage will reduce the monthly payments, but means you pay more overall, as interest will be charged for a longer period.

It’s important to weigh up your options carefully, as your decision will often be based on your current financial situation. However, it could be possible to change your term when it’s time to remortgage, so even if you want to keep your repayments low for the foreseeable future, you could opt for a shorter term when your financial situation changes. Remember, too, that if you find you can pay more, you may be able to make overpayments that can reduce your mortgage term.

It’s important to consider initial terms, too. Most fixed (and even some tracker) rates apply for an initial period, typically two, three or five years, but could be longer. At the end of this initial term you'll need to find another mortgage to make your repayments as low as possible to avoid reverting to your lender’s SVR, which is when it’s time to remortgage.

Shorter introductory mortgage rates might be attractive, but remember that the shorter your initial term, the more times you'll need to remortgage, potentially paying mortgage fees each time. Longer-term fixed rates offer the chance to guarantee your repayments for longer, but there’s also the chance that, if rates go down, you could end up paying over the odds for your mortgage. It all comes down to which possibility works best for you.


How much deposit/equity do you have for your mortgage?

The deposit you have to put down, or equity you already have in your home, plays a crucial part in the best mortgage deals you can get.

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 loan-to-value (LTV) guide.


Should you use a mortgage broker?

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 onto a third party. However, the most compelling reasons to use a mortgage broker are that you have more legal protection if you are mis-sold a mortgage, and your broker will most likely be more qualified to find a mortgage than you are.

Then there’s the fact that a broker has a responsibility to find the best mortgage products on the market, and they’ll often have access to deals that you won’t be able to find on your own. They’ll offer additional support, too; to learn more about mortgage brokers, read our mortgage broker guide, or contact an independent adviser.


Which mortgage is best for me?

Now that you have a general idea of the different types of mortgages available, it’s time to start thinking about how they apply to your specific situation, and which one would be the most appropriate for you. For some of these mortgage types, it’s easy to see which one would be best. If you’re a first-time buyer with a small deposit, a first-time mortgage deal will probably be your best (and only) option. If you have a large savings pot that isn’t gaining you as much interest as you’d like, an offset mortgage might be for you.

A less obvious choice is that between a fixed and a variable rate mortgage. This choice may come down to personal preference – whether you’d prefer to know your exact monthly repayments for the foreseeable future, or are happy with some degree of uncertainty in exchange for the possibility of a lower rate.

However, don’t forget to compare mortgage rates across the board. Sometimes, it may be that fixed mortgage rates are particularly high, in which case it would be better to opt for a variable rate deal which may even decrease. At other times, such as when there is a lot of uncertainty in the market, it may be better to fix your mortgage for as long as possible, to ride out any storms and avoid a variable rate which may increase by more than you’re comfortable paying.

Aside from scouring the Best Buys for the top rates and comparing the best fixed and variable mortgages, borrowers may also want to look at who is providing the best mortgage deals. High street providers may be the ones with the biggest marketing budgets, and therefore generally the ones that draw the eye, but they don’t necessarily offer the best rate mortgages. Sometimes, a challenger is a lot more eager to sign people up, and will offer better deals as a result.

Also remember that the cheapest mortgage rate isn’t always the best one for you. To make a fully informed decision, look not just at the rate and the term, but also how much it will cost upfront in mortgage fees, whether or not the lender will allow you to remortgage if rates become lower in the future, and anything else that you find important. Be on the lookout for incentives, too, but don’t be swayed by then – the true cost of the mortgage, including the rate and fee, is what counts.


How do I get a good rate on a mortgage?

Once you’ve figured out what kind of mortgage you want, it can be an easy process of looking at our Best Buy charts and deciding which deal best fits your requirements. But there’s more to it than simply applying.

Check your credit score

A vital aspect of applying for a mortgage, which people can choose to ignore at their own peril, is a credit rating. As part of the mortgage application process, your chosen lender will run a credit check on you and whoever else you may be buying the property with. If your credit score isn’t good enough, not only will you not get the mortgage, but your credit rating will also be lowered further, making it harder to get a mortgage from another provider.

So, while you may be solely focused on getting that deposit together, don’t forget to keep an eye on your credit rating – certain companies will allow you a free trial to check yours – and do whatever you can to make sure it is as good as it can be.

Find the best mortgage rates

Once you’ve got both a deposit and a decent credit rating sorted, and you’ve found a property on the market that you really want to buy, it’s time to scour the charts. Compare the mortgages that have the lowest LTV that you can afford, and remember that if you find yourself just a small amount away from a lower LTV tier, you might want to save up a bit more to reach that next level of affordability.

Plan for additional costs

Don’t forget about other expenses, either, including moving costs, stamp duty, and of course upfront mortgage and valuation fees. If you click on the details link of any top mortgage deal, you will see not only what arrangement fee you will have to pay for that mortgage, but you may also find some extra incentives which can offset any upfront costs, such as cashback, free legal fees and a free valuation.

Get a valuation

It is important to do a thorough valuation of any property you are looking to purchase, to make sure that there are no hidden problems that can cause you a major headache later on. For instance, a house may seem spick and span, but if the toilet outflow doesn’t connect to the sewer pipes, it's nothing more than an odd accessory, and fixing these kinds of problems can cost you a lot of money.

Research, research, research

Again, it’s all about paying attention to the details, not just of the actual property you are looking at, but also of the mortgage you are interested in. You may have found the cheapest deal, but have you thought about how you will manage the arrangement fee? Does it offer some degree of flexibility should your plans change?

There is no such thing as the ultimate good deal; everyone’s circumstances are unique. The best thing you can do is to compare the mortgage market, using our mortgage calculator tool which allows you to put in your specific search criteria, and see if the Best Buy mortgage deals match your requirements. Then make sure you’re as prepared for applying to a lender as you possibly can be. This may seem like a lot of hard work, but it could save you a lot of money over the long run!

Our Best Buy charts are unique in the comparison market due to their impartial nature – you will always find the objectively best mortgage deals right at the top, and any sponsored products clearly marked and separate – but that doesn’t always mean they will fit your specific needs.

Do your own research, using our mortgage comparison calculator, our mortgage guides, and any other information you can find, to make sure you are fully prepared for taking on a mortgage. Furthermore, don’t hesitate to contact an independent mortgage adviser to get the very best deal for your own personal circumstances. These things can make it more likely for your application to be accepted by a mortgage provider, with the interest rate that you are after. Then you will just have to worry about what colour to paint the walls!


Best Buys:

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


Tools and Guides:

Search all mortgages

Mortgage repayment calculator

How much can you borrow calculator

Mortgage guides

Mortgage terminology jargon buster


Mortgage Calculators

How much will I pay monthly?How much will I pay monthly?
Work out how much your monthly mortgage repayments will be.

How much do I need to borrow?How much do I need to borrow?
Work out how much money in total you will need to borrow in order to get a mortgage.

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