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Your mortgage is likely to be your biggest financial commitment. So shopping around for the best deal is vital. MoneySuperMarket can help you compare thousands of mortgage products from a wide variety of lenders, covering the whole of the market. This way, you can be confident you’re getting the right deal.
You can compare and save on your mortgage rate across many different borrowing needs, from your first home purchase, to releasing equity.
As a first-time buyer, you may have a smaller cash deposit to put towards your purchase, but you'll pay less in stamp duty - use our comparison tool to find a mortgage rate that fits your budget and affordability.
Remortgaging could help you save money by getting a lower interest rate and better terms - you could save £6,872.63 a year when you remortgage from a Standard Variable Rate.
A buy-to-let mortgage is designed specifically for people looking to purchase property as an investment, rather than as somewhere to live. If you’re buying a house or flat and intend to rent it out to tenants, you need a buy-to-let mortgage.
You have a number of options with your mortgage when moving home. If you have an existing fixed-term deal, you may be able to port (move) it to a new property. If not, you will need to pay an exit fee. If your term has ended or you have a variable rate deal, then you can apply for a new mortgage on your new home.
Equity release lets you access some or all the wealth tied up in your home.
You can use an equity release product to release cash, but be aware that boosting your available wealth in this way may affect your entitlement to means-tested benefits.
A mortgage is a loan used to purchase a home, either for yourself to live in, or for others to rent out.
It's a form of secured lending, meaning the mortgage itself is secured against the property and failing to keep up payments means the lender can repossess it to recoup the loan from you.
Mortgages come in loads of different forms, with varying rates depending on your circumstances, such as the amount you're lending and how long you're borrowing it for.
Mortgage rates are largely dictated by the Bank of England base rate, meaning when interest is high, so are mortgage rates.
'Loan to Value' ratio (LTV) is important, as higher LTVs mean you're borrowing more relative to the property's price. Putting down a bigger deposit, or if your home appreciates in value, will lower your mortgage rate.
Spreading your mortgage repayments over a longer period, like 35 years, will lower your rate, but you'll pay more interest over the full term.
Fixed-rate mortgages have an interest rate that stays the same for a set period. It means repayments are the same every month, so you’re protected from any rise in interest rates. Mortgage deals are typically on a two-year or five-year fix, though some lenders offer ten-year fixed rate deals.
A tracker mortgage will usually charge you an interest rate that follows the Bank of England base rate. However, it generally tracks a few percentage points higher. The base rate is the interest rate at which high street banks borrow money. As it goes up and down, your monthly repayments will rise and fall too.
A standard variable rate (SVR) is an interest rate set by your lender, usually a few percentage points above the Bank of England base rate. If you are on an SVR mortgage, you’re probably paying more than you need. Switching to a fixed- or tracker-rate deal can usually save you money and there shouldn’t be an early repayment charge.
A discounted variable-rate mortgage is similar to a tracker mortgage. But rather than being linked to the Bank of England base rate, it’s linked to your lender’s standard variable rate (SVR). A discounted variable-rate mortgage will be set at a fixed percentage below your lender’s SVR for a period of two to five years. The SVR can change at your lender’s discretion and your monthly repayments will go up and down as a result.
An interest-only mortgage allows you to pay just the interest charged on the loan each month. You don’t have to repay the amount you’ve borrowed, which is sometimes known as the ‘capital’, until the end of the term. This means your monthly payments will be less than on a repayment mortgage. However, you must make provisions to repay the original loan.
An offset mortgage lets you use your savings against the amount you owe on your mortgage, reducing how much interest you pay. The value of your savings is deducted from your outstanding mortgage balance, so you pay interest on the remainder. Offsets work well if you pay more in mortgage interest than you earn in a savings account.
A fixed-rate mortgage can offer peace of mind because you’ll know what your monthly repayments are. But a tracker mortgage could be cheaper overall. It’s important to consider what suits your financial circumstances and attitude to risk.
Consider any fees attached to the mortgage deal, as these can add considerably to the overall cost - especially if you don't pay them up front. Also, factor in the length of the initial term – there is likely to be an early repayment charge if you want to leave early.
Check your credit report before applying for a new mortgage. Existing financial commitments have a big impact on what mortgage rates and deals you’ll be offered. You can also take steps to improve your rating where possible, such as getting on the electoral roll.
By shopping around, you can look across the whole mortgage market to find deals that suit your needs. That’s where we can help. Whether you’re looking to buy or remortgage, we offer a comprehensive mortgage comparison across the market to source the right one for you.
Our mortgage calculator shows you how much you could borrow based on your income
Work out the cost of your mortgage and the predicted cost of your monthly repayments
See how much your mortgage payments will be affected by a Bank of England base rate change
See how much stamp duty you will need to pay on completion of your house purchase
Keen to find how much you could save by overpaying on your mortgage?
NatWest has launched a 3.71% 5-year fixed rate deal for direct applicants.
This is the lowest rate since April 2023 (3.79%).
If you're buying a house for the first time, or moving to a new one, you could be eligible.
You could be eligible if you meet the following criteria:
You must have over 40% deposit (60% or lower LTV).
There's a £1,495 fee
You're a first-time buyer, or you're moving home.
Direct applications only - this isn't available through a broker
First Time Buyer
Barclays 5 Year Fixed
Representative example: a repayment mortgage amount of £120,000 over 25 years, representative APRC 7%. Total amount payable £261,411.82 includes interest of £140,597.82 product fees of £699 and other fees of £115. Repayments: 63 months of £655.47 at 4.33% (fixed), then 237 months of £925.33 at 8.74% (variable). Early repayment charges apply.
Lender Fees
Redemption fee- £80
Bank transfer fee- £35
Land registry fee- £0
Arrangement fee*- £699
Valuation fee- £0
An asterisk (*) indicates that this fee can be added to the balance of the mortgage
Incentives
Free valuation
Repayment charges
Overpayments are allowed up to 25% without a charge. If you overpay beyond that limit you will be subject to an early repayment charge.
Early repayment charges
Early repayment charges are based on a percentage of mortgage amount repaid repaid at the rates shown below for each period.
Period Percentage
Up to 30/9/2029- 4%
Remortgage
Barclays 5 Year Fixed
Representative example: a repayment mortgage amount of £120,000 over 25 years, representative APRC 7.0%. Total amount payable £261,546.19 includes interest of £140,432.19 product fees of £999 and other fees of £115. Repayments: 63 months of £654.12 at 4.31% (fixed), then 237 months of £924.99 at 8.74% (variable). Early repayment charges apply.
Lender Fees
Redemption fee- £80
Bank transfer fee- £35
Arrangement fee*- £999
Valuation fee- £0
An asterisk (*) indicates that this fee can be added to the balance of the mortgage
Incentives
Free legals
Free valuation
Repayment charges
Overpayments are allowed up to 25% without a charge. If you overpay beyond that limit you will be subject to an early repayment charge.
Early repayment charges
Early repayment charges are based on a percentage of mortgage amount repaid repaid at the rates shown below for each period.
Period Percentage
Up to 30/9/2029- 4%
Home Mover
Barclays 5 Year Fixed
Representative example: a repayment mortgage amount of £120,000 over 25 years, representative APRC 7%. Total amount payable £261,411.82 includes interest of £140,597.82 product fees of £699 and other fees of £115. Repayments: 63 months of £655.47 at 4.33% (fixed), then 237 months of £925.33 at 8.74% (variable). Early repayment charges apply.
Lender Fees
Redemption fee- £80
Bank transfer fee- £35
Land registry fee- £0
Arrangement Fee*- £699
Valuation fee £0
An asterisk (*) indicates that this fee can be added to the balance of the mortgage
Incentives
Free valuation
Repayment charges
Overpayments are allowed up to 25% without a charge. If you overpay beyond that limit you will be subject to an early repayment charge.
Early repayment charges
Early repayment charges are based on a percentage of mortgage amount repaid repaid at the rates shown below for each period.
Period Percentage
Up to 30/9/2029- 4%
With interest rate rises now back on the agenda after years of low borrowing rates, it’s important to understand how such interest rate changes can affect mortgage rates.
If you have a fixed-term deal, interest rate changes will not affect your mortgage until your term ends. That means your monthly repayments will remain the same. However, after years of historically low mortgage rates, those coming to the end of their deal should be mindful that rising rates may mean having to pay significantly more each month.
Tracker and Standard Variable (SVR) mortgage holders will notice the change in mortgage rates immediately. That is because such deals are tied to the Bank of England base rate, which has consistently raised since late 2021.
For first-time buyers and those remortgaging, changing mortgage rates can mean more expensive deals compared with those available just a few years ago. Lower rates are available to those with a larger deposit or higher loan-to-value on an existing property.
For those with a 5% or 10% deposit, mortgage rates are likely to be at their highest. Fixing a price is advisable, however, as fluctuations in the rate can mean bills go up (as well as down) depending on the interest rate set by the Bank of England.
While the rate cut is undoubtedly positive news, it’s essential you take steps to maximise the benefits - check if your fixed-rate deal is nearing its end and start exploring your options - and even if it's not near the end, remortgaging could still be worthwhile if the rate is significantly lower.
If you can afford to, overpaying your mortgage can help reduce the overall cost of borrowing and potentially shorten the term.
We don't just help you compare mortgage rates - we also help you find great deals on conveyancing solicitors, homebuying survey quotes, and more.
If you’re aged 18–39 and are saving up for a deposit to buy your first home, you can save into a Lifetime ISA where cash is topped up with a 25% bonus by the government.
You can pay up to a maximum of £4,000 a year into the account and claim an annual government bonus of up to £1,000. You can use this money to buy a property costing up to £450,000.
The First Homes Scheme offers a 30% to 50% discount on the market value of a new-build home, or one originally bought with the First Homes Scheme.
To be eligible you must:
be 18 or older
be a first-time buyer
be able to get a mortgage for at least half the price of the home
not earn more than £80,000 a year before tax (£90,000 if the property is in London) - this is your income from the previous tax year
If you’re buying with others:
you must all be first-time buyers
you must apply together, even if you’re not all getting a mortgage
your joint income cannot be more than £80,000 a year before tax (£90,000 if the property is in London)
Local exemptions apply, so check gov.uk for the latest guidance.
In a nutshell, the scheme results in more lenders offering 95% mortgages, meaning you only need to put up 5% as a deposit to get your foot on the ladder.
Any houses are eligible for the scheme as long as they cost under £600,000, but some lenders, like Barclays, have different criteria - so check with your prospective mortgage lender before you apply.
The scheme is due to end by July 2025.
To be eligible for Rent to Buy, you must be:
in full or part time employment
a first-time buyer
able to pay your rent and save for a deposit at the same time
The scheme is available in England, apart from London. Properties in London are covered by a separate scheme called London Living Rent.
Stamp duty is the tax you pay when you buy a property or land set as a percentage of the purchase price. The amount of tax you’ll pay in total depends on the value of the property you are buying, as well as whether you intend to live in it or rent it out.
In England and Northern Ireland, there is no stamp duty to pay on the first £250,000 of a property purchase you make for your personal use. If the property you’re buying is valued at £625,000 or less, this nil-rate band rises to £425,000 for first-time buyers.
Tax is applied at a tiered rate based on the value of your property above the nil-rate band. Stamp duty thresholds and levies are different in Scotland and Wales.
See what tax you might pay with our stamp duty calculator.
A strong credit rating is the key to securing a mortgage offer with attractive terms. A good credit score shows lenders you’re less of a risk. Find out your credit score with our Credit Monitor tool. We’ll also send you tips and tricks on how to improve your credit score
MoneySuperMarket has won the Feefo Platinum Trusted Service Award, an independent seal of excellence, which recognises businesses that consistently deliver a world-class customer experience.
Mortgage comparison is easy with MoneySuperMarket.
Tell us whether you’re looking to buy or remortgage and whether you’ll use the property to live in or rent out to tenants
Let us know an estimate of the property value, your deposit, the length of your desired term, and how you want to repay
We sift through mortgage deals from our leading panel of providers. This way, you can see what's on offer and make an informed choice
It’s hard to definitively say who has the best mortgage rate, as that depends on what you’re looking for.
Banks and building societies change their mortgage rates quite frequently, so it’s always best to shop around when looking for the best deals. While low interest rates are attractive, they are not the only consideration. You should also factor in the type of deal you want, such as whether a fixed-rate or variable-rate mortgage will suit you best.
What’s more, think about the fees attached to the deal, plus how long you want to be tied into the loan.
A mortgage is a type of loan you get from a bank or building society to help buy a property. The size of the mortgage you need for a property will depend on how much you’ve saved up to put towards a deposit and the amount you still need to reach the purchase price.
The amount of mortgage you then take out will be a percentage of the purchase price. This is called a loan-to-value ratio, or LTV.
You can apply for a mortgage through a bank or building society. You’ll need a few documents on hand to start the process, 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. This is so the lender can calculate what kind of mortgage you’ll be able to afford. Your potential lender will also run checks to determine your financial status and credit history. If your application is accepted, you’ll be sent a mortgage offer.
It's easier and quicker to find the best mortgage for you when you compare quotes with MoneySuperMarket. Just tell us about yourself and the home you want to purchase. You can compare deals by the initial interest rate, APR, and the fees included in the overall mortgage term.
The size of the mortgage you can afford is based on your income and any financial commitments you already have.
You can find out how much you could borrow with our mortgage calculator. Simply enter your annual income and we’ll do the rest.
Whether a lender will let you borrow this amount will also depend on your credit history, the size of your cash deposit, and the length of the mortgage term.
This is the rate of interest charged on a mortgage. Rates are determined by the lender in most cases. They can be 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, it’s important to understand the different types and how they work.
Mortgage lenders generally offer around 4.5x your annual salary for a mortgage. So, for example, if you earn £30,000 per year, you should be able to borrow £135,000, 4.5x your wages. Some lenders may offer deals based on 5x your salary.
If you are a couple buying a home, or you are buying with someone else, you can combine your salaries so you can borrow more money. That means that if you earn a combined £60,000, you should be able to borrow £270,000.
If you have a larger deposit, you may not need to borrow the maximum amount, meaning you can get lower mortgage rates. Remember that lenders carry out stringent checks to ensure you earn as much as you say you do. If you are self-employed, you will need to provide extensive evidence of your salary over the past two or three years.
A loan-to-value (LTV) ratio is used to indicate how much of your new property is paid for by your mortgage (in percentage). You can calculate this by subtracting your deposit as a percentage from the house’s total price value.
For instance, if you’re purchasing a property that is valued at £200,000 and you’ve already paid a deposit of £50,000, you will be left with a 75% LTV. This is because your deposit is worth one-fourth (25%) of the house’s total price.
Generally, a larger LTV will come with higher interest rates as there’s more risk to the lender. Instead, paying a bigger deposit or buying a cheaper property in relation to your finances, is likely to get you a more favourable mortgage rate.
This is a specific type of mortgage where another homeowner – generally a family member or close friend – agrees to cover for your mortgage expenses should you not be able to yourself. Guarantor mortgages are particularly useful in the case of first-time buyers, as they’re likely to have a limited deposit and a poor credit history.
That said, these mortgages come with a huge dose of financial responsibility for both you and your guarantor. If you’re both unable to meet your mortgage repayments, you could put your homes at risk.
Therefore, it's important to ensure that you can afford this type of solution. Bear in mind that guarantor mortgages usually don’t offer the best mortgage rates on the market.
A mortgage in principle or an agreement in principle is confirmation of how much a bank or building society is prepared to lend to you based on the information you’ve provided. This can help show that you’re ready to buy when it comes to making an offer on a property.
However, it’s important to remember that a mortgage in principle is not a guarantee that an offer will be made. A lender can still refuse or reduce the amount at the point you come to make a full mortgage application, as this will assess your full credit history and financial situation at the time of application.
APRC stands for annual percentage rate of change, and it’s expressed as a percentage. It shows you the total cost of your mortgage, including any fees or variable interest rates, over the entire term of the loan.
APRC is often used to advertise mortgages, as it helps give a more realistic idea of how much the mortgage will cost overall. It can come in handy when you’re comparing mortgages, as you can see how different rates and fees can impact the cost of your mortgage over its lifetime.
Our page APRC Explained goes into more detail.
Taking out a mortgage comes with an array of additional expenses. Here are a few you can expect to pay:
Arrangement fee – this is the standard fee you’ll have the pay lender to set up the mortgage
Booking fee – this ‘books’ your loan while you wait for your application to be processed and accepted
Valuation fee – this covers for checks to the property to ensure that it’s worth the sum of money you’re hoping to borrow
Conveyancing fees – this fee covers the legal costs associated with purchasing your new house
Broker fee – if you seek help from a mortgage advisor, some will ask for a payment for their service. The broker or advice fee is what you’d generally pay for mortgage advice
Fixing for two or five years is a personal choice. Five year deals now tend to come with a marginally lower interest rate compared with two year deals, and have the advantage of offering security, as well as the knowledge of how much you must pay every month. However, they also attract higher exit fees if you choose to quit your deal early.
Two-year fixes are good for those who want short term stability, but want flexibility in case interest rates fall. While rates have stabilised, they remain at their highest since the 2008 financial crisis and are unlikely to fall significantly in the medium term. That means a five-year fixed mortgage may be preferable.
If you’re unsure, seek the advice of a mortgage broker or advisor.
Mortgage term: most people opt for a 25-year term for their first mortgage, but you can choose a longer or shorter period. If you opt for a longer term, your repayments will be lower. However, it will take you longer to pay off the debt and you’ll pay more interest overall. The shorter the term, the sooner you'll be mortgage free, but you should make sure you can meet the repayments each month.
Deal length: given that many mortgage deals have an early repayment charge (ERC) if you want to 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, opting for a two-year deal rather than a five-year deal might be preferable. 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 to get out of the deal.
Repayment or interest-only: you can take your mortgage out on a repayment or interest-only basis. With a repayment mortgage, your monthly payments are calculated, so you’re paying off some of the capital as well as the interest. This way, you can be confident you’ll have repaid the entire loan by the end of the term.
In contrast, monthly payments on an interest-only mortgage cover only the interest. This means you'll have the original loan to pay in full at the end of the term. The idea is that you’ll have a repayment plan in place, such as an investment or cash ISA. Therefore, you’ll build up a significant lump sum to clear your mortgage loan in full by the time your mortgage ends.
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 works out to be more cost-effective to go 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.
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. You can do this by finding out what the monthly payment will be using our mortgage repayment calculator – and then multiply by 12. You then need to add on the arrangement fee to find out the total cost.
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.
By paying off any outstanding borrowed credit and making sure your current address is on the electoral roll, you can help to improve your credit score.
The more money you can save as a deposit, the less you’ll need to borrow as a mortgage loan. 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.
The rest will need to be made up with either a deposit or funded through the government’s Help to Buy equity loan (now closed to new applicants) or the newer Lifetime ISA (LISA) scheme.
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. It also allows you to identify 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. This is because they will then be influenced by your financial situation and credit history.
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, so we have gathered the relevant information on this page.
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