Choose your mortgage

Remortgage

Remortgage

Save money when you switch your mortgage. Find out how swapping to a different deal with your existing lender, or moving to another lender, can reduce your repayments.

How to remortgage your property

First time buyer illustration

First-time buyer

Everything you need to know about the best deals for first-time buyers, including incentives like cashback, low fees, or a contribution towards legal costs.

First time buyer mortgage guide

Home purchase illustration

Home purchase

Discover how a home purchase mortgage can help you move to a new home and see how you could get a great rate by switching to a new deal.

Home purchase mortgage guide

Buy to let illustration

Buy-to-let

Become a landlord and buy a property you can rent out with a buy-to-let mortgage – or learn more about remortgaging an existing rental home.

Read our buy-to-let mortgage guide

What influences if a mortgage is suitable for you?

Your eligibility for a particular mortgage depends on a number of factors…

Remortgage eligibility

When you compare remortgage deals with us, you’ll be asked six short questions so we can show the deals most relevant to you. You can also choose to answer an additional set of questions so we can remove those mortgages you won’t be eligible for.

Eligibility for a mortgage

Your eligibility for a mortgage will depend on your personal profile and credit rating, the property, and the lender’s own criteria. Each lender will look at how much it believes you can afford before deciding how much to let you borrow.

Compare mortgages from over 90 lenders, covering the whole of the market

Mortgage repayment and overpayment calculators

Our mortgage calculator can help you get a better idea of how much you can afford to borrow, and how much your mortgage will cost you in monthly repayments. You’ll also be able to see the total cost of your mortgage once the interest has been added.  

If you want to see how your existing mortgage repayments would be affected by a one-off lump sum payment or increased monthly repayments, our overpayment calculator shows how much you could save in interest payments. Just make sure to read your lender’s repayment terms to check if overpayments are permitted.

And if you’re interested in finding out the average minimum deposit needed for a mortgage across the UK, visit our mortgage deposit deficit guide

Calculator

Fixed rate mortgages

Fixed rate mortgages have an interest rate that stays the same for a set period. This could be anything from two to 10 years. Your repayments are the same every month and you don't need to fear fluctuations in interest rates. Most will charge you a penalty - known as an early repayment charge (ERC) - if you choose to leave the deal before the end of the fixed term.

Variable rate mortgages

Interest rates adjust periodically with a variable rate mortgage, which means repayments may change throughout the loan term. Usually, the interest rate changes in relation to another rate - the Bank of England's base rate is very influential on variable interest rates, as is the base rate of each lender.

For standard variable rate (SVR) mortgages, each lender has an SVR that they can move when they like. In reality, this tends to roughly follow the Bank of England's base rate movements. SVRs can be anything from two to five percentage points above the base rate – or higher – and they can vary massively between lenders.

Discounted variable rate mortgage

The other type of variable mortgage is a discount mortgage. Rather than being linked to the Bank of England base rate, discounts are linked to the lender's standard variable rate (SVR). For example, if the SVR is 4.50% with a discount of 1%, the payable mortgage rate is 3.50%. If the SVR rose to 5.50%, the pay rate would rise to 4.50%.

The problem with discounts is that SVR changes are at the lender's discretion so your mortgage payments could change even if there has been no alteration in the Bank of England base rate. What's more, even if the SVR changes following a move in the base rate, there is no guarantee that it will increase or decrease by the same amount.

As a result, trackers are usually seen as more transparent than discounted deals and are often seen as being fairer for the borrower.

When the base rate fell from 5.00% to 0.50% between October 2008 and March 2009, for example, Lloyds TSB was the only top 20 lender to reduce its SVR by the full 4.50%. All the others cut their rates by less.

When the Bank of England raised the base rate from 0.25% to 0.5% in November 2017, anyone who wasn’t on a fixed rate mortgage was at risk of seeing their repayments increase. A number of leading mortgage lenders followed and increased their tracker and/or SVR rates a month later.

Mortgage fees explained

Most mortgage deals carry arrangement fees, which can vary from a few hundred pounds up to a couple of thousand.

Also bear in mind that these set up costs can sometimes be made up of two fees. An increasing number of lenders charge a non-refundable booking fee, which is effectively a product reservation fee. If your house purchase falls through and you don’t end up taking the mortgage deal, you won’t get this fee back.

The second type of fee is an arrangement fee which you pay on completion of the mortgage so you won't have to pay it if, for any reason, you don't take the mortgage.

Mortgage overpayment

Calculate how early you could pay off your mortgage. But make sure you read our mortgage overpayment guide first, as overpaying isn’t the right move for all homeowners.

Mortgage overpayment calculator

Consider the fees

Remember to always factor these into the overall cost of any deal. Even if a lender is offering a seemingly unbeatable rate, steep fees could mean that it actually works out to be more cost-effective to opt for a higher rate, but with a much lower fee, or no fee at all.

The best mortgage rate for you depends on how much you are looking to borrow. A high fee is often worth paying in order to secure a low interest rate if you are applying for a large mortgage. But those with smaller mortgages could be better off opting for a higher rate and lower fee.

However, while this is the general rule, it is well worth crunching the numbers when you are comparing mortgages - you need to work out the total cost over the term of the deal. For example, if you are going for a two-year fix you need to work out the cost of your repayments over the term. You can do this by finding out what the monthly payment will be using our mortgage calculator – and then multiply by 24. You then need to add on the arrangement fee to find out the total cost.

Credit history

You will likely find that you have more mortgage deals available to choose from if you have a good credit history, so it’s worth making sure that your credit report is as good as it can be before applying for a mortgage. Steps like paying off any outstanding borrowed credit you owe and making sure your current address is on the electoral role can help to improve your credit score.

Save a deposit

The more money you can save as a deposit, the less you’ll need to borrow as a mortgage loan – and having a bigger deposit can help you get access to more competitive mortgage rates. Lenders will often have a maximum loan to value they’re prepared to offer you, and the rest will need to be made up with either a deposit or an equity loan like the government’s Help to Buy equity loan scheme.

Compare mortgage deals

Using a mortgage comparison tool can help to give you a better idea of how much you’d need to pay in monthly costs and interest, the duration of the deal, the maximum LTV and any product fees you may need to pay for the mortgage deals available based on your borrowing requirements. It’s important to remember though that the actual mortgage deals you’re offered when you go to make an application may differ because they will then be influenced by your financial situation and credit history.

Looking for mortgage advice?

Get free mortgage advice, and see deals from the whole of the market, with broker London & Country. Call free from your landline or mobile on 0800 170 1943 any day.

Read more about London & Country

Hotel of Mum & Dad

With around 4.5 million adult children living at their parents’ house, the Hotel of Mum & Dad is a major part of British life.

In most cases, the situation arises out of necessity. Rents are sky-high, and getting on the housing ladder is notoriously expensive in many parts of the country, so children have little choice but to return to the family home.

But that in itself brings its own pressures and concerns for parents and their offspring. What are the additional costs of having another person under the roof? How do family members get along on a day-to-day basis when they might have different schedules, responsibilities and preferences?

We’ve explored these and related issues in a survey of what is undoubtedly the biggest hotel chain in the UK. And we’ve built an interactive calculator so that parents and children alike can work out how much they’re spending or saving by being in their own Hotel of Mum & Dad.

Check in here

How do mortgages work?

A mortgage is a type of loan that a bank or building society lends to you to help you buy a property. The amount of mortgage you need to borrow will depend on the amount you’ve saved up to put towards a deposit for a property, and the amount you still need to reach the purchase price of the property you want to buy. So the amount of mortgage you then take out will be a percentage of the purchase price – which is called a loan-to-value or LTV.

How do you get a mortgage?

You can apply for a mortgage through a bank or building society – you’ll need to have a few documents to hand, including proof of identity, utility bills and bank statements. When you apply you’ll be asked a series of questions about yourself and your finances, so your lender can calculate what kind of mortgage you’ll be able to afford. They’ll also run a number of checks to determine your financial status, and if your application is accepted you’ll be sent an offer.

However it's easier and quicker find the best mortgage for you when you compare quotes with MoneySuperMarket. Just tell us a little about yourself and the home you want to purchase, and you can compare deals by the initial interest rate, overall APR and the fees included in the overall mortgage term.

How much mortgage can you afford?

The amount of mortgage you can afford is based on your yearly income and any financial commitments you already have.

You can use our mortgage calculator to help you figure out how much a mortgage might cost you in monthly repayments based on the purchase price you enter and the amount you’d need to borrow as a mortgage loan, as well as the interest rate charged. This should give you a better idea of how much mortgage you could afford to pay each month.

Whether a lender will let you borrow this amount though will also depend on your credit history and mortgage term.

What are mortgage interest rates?

Mortgage rates are the rate of interest charged on a mortgage. They are determined by the lender in most cases, and can be either fixed, where they remain the same for the term of the mortgage, or variable, where they fluctuate with a benchmark interest rate.

Before you compare mortgage rates, you first need to understand the different types and how they work.

What else do you need to consider when looking for a mortgage?

Mortgage term: most people opt for a 25-year term when they take their first mortgage out - but you can choose a longer or shorter period of time. If you opt for a longer term, your repayments will be lower but it will take you longer to pay off the debt. The shorter the term, the sooner you'll be mortgage free. So the shortest term with the most affordable fee is often a better option.

Deal length: given that most mortgage products have an early repayment charge (ERC) if you end the mortgage deal early, it’s important to think about how long you’re happy to tie yourself in for. For example, if you think you might move in the next few years, you'd be better off going for a two or three year product rather than locking into a five year product. It can cost thousands of pounds to get out of a mortgage early as the penalty is usually a percentage of the outstanding mortgage. So if your mortgage if £100,000 and the ERC is 2%, you'll have to pay £2,000.

Repayment or interest-only: you can take your mortgage out on a repayment basis or interest-only.

With a repayment mortgage your monthly payments are calculated so you're paying some of the capital off as well as the interest and will have repaid the entire loan by the end of the term.

Monthly payments on an interest-only mortgage, on the other hand, just cover the interest – which means you'll have the original loan to pay in full at the end of the term. The idea is that you have a repayment plan in place, such as ISA investments, so you’ve built up the lump sum you need by the time your mortgage ends.

However, interest-only mortgages are getting harder to come by because lenders are concerned about the risk of too many people taking out interest-only mortgages with no repayment plan in place – which means that lenders that do offer this mortgage type may only offer them to people with very large deposits. 

What is a mortgage in principle?

A mortgage in principle or an agreement in principle is confirmation of how much a bank or building society would be prepared to lend you in theory – based on the information you’ve given them – and this can help show that you’re ready to buy when it comes to making an offer on a place. It’s important to remember though that a mortgage in principle is not a guarantee that a lender will let you borrow that much, and they can still decide not to lend to you when you come to make a full mortgage application. This is because a full mortgage application also looks at your full credit history and financial situation.

What happens to your mortgage when you move house?

Many mortgages are portable, so in theory you can take your existing deal with you when you move. However, it’s unlikely that the mortgage on your new house will be exactly the same as that on your existing home.

Unless you're downsizing, you'll probably need to borrow an additional amount. This is possible, but it is likely to be at a different rate than you're paying on the existing mortgage so it all gets a bit more complicated. It's therefore simpler if the fixed or introductory term has ended and you're out of the penalty period when you come to move.

You’ll also need to go through the same affordability and credit checks you went through to get your current mortgage deal to make sure you could afford to borrow more. There will also be some mortgage fees you’ll need to pay when moving house, including a property valuation, legal fees and stamp duty. Our home movers guide has more information about what happens to your mortgage when you move home.

Can't find what you're looking for? Try looking at our news, views and in-depth mortgage guides

Get Money Calm

MoneySuperMarket gives you lots of clever ways to save a lot, by doing very little.

  • Take control of your credit score by checking and improving it for free with Credit Monitor
  • Never overpay again with Energy Monitor, our energy monitoring service
  • Over 50 ways to Get Money Calm

So how do we make our money? In a nutshell, when you use us to buy a product, we get a reward from the company you’re buying from.

But you might have other questions. Do we provide access to all the companies operating in a given market? Do we have commercial relationships or ownership ties that might make us feature one company above another?

We commit to providing you with clear and informative answers on all points such as this, so we have gathered the relevant information on this page.