Compare the Best Mortgages
Our team of money saving experts constantly review the top mortgage rates and deals to help UK families to get the most value and security. We answer all of the most common questions that people ask and provide in depth reviews of the leading mortgage lenders.
Read all about the latest interest rate news and what to do to get the best fixed rate mortgage deals. One of the biggest questions for families about mortgages is ‘what are the lowest rates?’.
If you’re thinking about changing your mortgage or maybe you just need some help to understand your options, you can contact one of our team of qualified mortgage partners on 01925 500425 or CLICK HERE.
There are 1,000’s of mortgage rates and deals that are available from over 100 mortgage lenders in the UK. Finding the best deal based on your financial circumstances can be confusing for families and searching can be extremely time consuming, this is why we recommend to speak to an experienced mortgage adviser.
What is the best mortgage interest rate?
The Bank of England sets its base rate every six weeks in the United Kingdom and this is what usually determines what happens to mortgage interest rates. In the past several years, the Bank of England base rate has been increasing consistently until recently where it has started to fall again.
You can find out everything you need to know about the latest and best mortgage interest rates in the UK in our latest interest rate guide. Our mortgage experts are constantly reviewing the best deals and interest rates from the top mortgage lenders to help our UK families to save more money.
Mortgage rates and especially fixed rate mortgages are constantly changing which can make getting the right deal even more confusing. Families can save £1,000’s every year with the lowest fixed rate mortgage deals.
Why do I need a mortgage?
There are four main reasons for a family getting a mortgage or a remortgage, and every type of mortgage is different. The four main types of mortgage applications are:
- New Mortgage or Purchase Mortgage which is anyone looking to purchase a standard residential family home as their main residence. Moving home usually means that you will need a new mortgage to buy the new property that you are purchasing.
- First Time Buyer Mortgage are specifically for families buying their first home or for someone who has not owned a property for a couple of years or more. There are lots of different options, plus specific deals and incentives to help support new home owners.
- Remortgaging can help a family to save £1,000’s on their mortgage repayments every month, or it can be used to release a lump sum for debt consolidation, home improvements, and to buy certain things. There are lots of different remortgage options for families to help you to get what you want from your mortgage.
- Buy to Let Mortgages are specifically for landlords and property investors which is a common mortgage type in the UK with a booming investment market. Families often use buy to let mortgages to generate a second income for their household and provide financial security.
Which is the best type of mortgage?
There are also several different types of mortgage that you can choose from to suit your budget and your own attitude to risk. The most common type of mortgage in the UK is a Fixed Rate Mortgage because it offers security for families to be able to budget more effectively.
Top mortgage types UK:
- Fixed Rate Mortgages are the most popular type of mortgage for families and homeowners because the give security against future interest rate rises, especially in times of uncertainty.
- Discount Rate Mortgages can offer lower initial interest rates than fixed rate deals but they are variable which means that they can go up as well as go down, so not ideal for budgeting.
- Capped Rate Mortgages offer another type of discount rate mortgage deal that can still go down, but they have a limit (or ‘cap’) on the rate that they can go up to.
- Standard Variable Rate Mortgages (or reversion rate) are the lender’s standard variable rate that every mortgage reverts to after the end of a special rate period and will usually be 2% to 4% higher than Fixed or Discount rate mortgages.
What are the two main types of mortgage?
There are also two main types of mortgage repayment methods for residential and buy to let mortgages. The mortgage type that you choose will affect how you pay off your mortgage and there are pros and cons to each type of mortgage.
- Capital and Repayment Mortgage is the most common type of residential mortgage for families and some investors choose this method for their buy to let mortgages. This type of mortgage means that you will repay an amount of interest and an amount of capital every month so that your mortgage balance reduces over the term of the loan.
- Interest Only Mortgages are now only really used for investment properties or buy to let mortgages, because lenders no longer tend to offer these for residential purposes. As the name suggests, you only repay the interest every month which is why these are cheaper repayments, but you will still owe the full amount at the end of the loan period.
Read more about which type of mortgage is best and find the answers to all your questions to get the best mortgage repayment type for your family.
How much does it cost to get a mortgage?
There are several fees and charges that you’ll need to think about when you get your new mortgage or remortgage. Make sure that you do your research to find the best deals with the lowest fees and charges.
Mortgage lender fee: Most lenders charge an admin fee or a reservation fee with a fixed or discount rate mortgage deal and these typically range from £495 to £1,995 depending on the deal.
Mortgage advice fee: Mortgage brokers also usually charge a fee for their advice which are usually between £195 and £995, depending on the broker and the deal.
Solicitors fee: If you’re purchasing a property then you will need a solicitor (or conveyancer) to process the legal details, searches, and to pay your Stamp Duty.
Valuation fee: Your property will usually be valued by a qualified surveyor to make sure that it is worth the amount suggested. If you’re buying a property then you might also need a higher level valuation such as a full structural survey and these can cost up to £2,000.
Stamp Duty: When you buy a property in the United Kingdom you will usually need to pay Stamp Duty Land Tax (SDLT). *see Stamp Duty Calculator
Mortgage fees and charges can vary dramatically from one lender or broker to another, so it’s important to get the best value for your family.
Note: Your mortgage may include additional fees such as Early Repayment Charges (ERC) or an arrangement fee that is charged by the lender. It’s a good idea to budget for any unexpected charges before applying for a mortgage.
Who is the best mortgage lender?
The biggest mortgage lender in the United Kingdom is Lloyds Banking Group with 16.8% market share and £52.7 billion of lending in 2023. There are also five other major mortgage lenders in the UK, known collectively as the ‘Top Six Mortgage Lenders’, including NatWest, Nationwide, Santander, Barclays, and HSBC, accounting to nearly 72% of mortgage lending.
Every mortgage lender has its own strengths and weaknesses which will work for some families but not for everyone. Some mortgage lenders are also best for specialist types of mortgage lending, such as:
- Self employed
- Contractors
- Bad credit
- Buy to let
According to the independent expert at Which?, the best mortgage lender in the UK in 2024 is Nationwide Building Society based on its customer service and mortgage rates.
