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Compare Best Mortgage Rates

Start your search for a mortgage with Moneyfactscompare.co.uk. Not sure which type of mortgage is right for you? Visit our mortgage guides and mortgage news sections. Ready to compare rates? Select a page below and start comparing providers. 

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Best Remortgage Rates

Product Type
Rate
APRC
Max LTV
2 Year Fixed
4.39%
7.4%
60%
3 Year Fixed
4.49%
7.8%
60%
5 Year Fixed
3.99%
6.4%
60%
10 Year Fixed
4.76%
6.1%
60%
60% LTV
3.99%
6.4%
60%
75% LTV
4.19%
6.5%
75%
80% LTV
4.30%
6.6%
80%
Discounted Variable
4.74%
8.2%
60%
Variable
4.74%
8.2%
60%
All Remortgages
3.99%
6.4%
60%
moving home icon

Best Moving Home Rates

Product Type
Rate
APRC
Max LTV
2 Year Fixed
4.13%
7.1%
60%
3 Year Fixed
4.34%
7.7%
60%
5 Year Fixed
3.99%
6.4%
60%
10 Year Fixed
4.63%
5.8%
60%
60% LTV
3.99%
6.4%
60%
75% LTV
4.19%
6.5%
75%
80% LTV
4.24%
6.3%
80%
Discounted Variable
4.44%
8.1%
75%
Variable
4.44%
8.1%
75%
All Moving Home
3.99%
6.4%
60%
moneyfacts first time buyer house icon

Best First-Time Buyer Rates

Product Type
Rate
APRC
Max LTV
2 Year Fixed
4.75%
8.3%
90%
3 Year Fixed
4.99%
7.2%
90%
5 Year Fixed
4.62%
6.5%
90%
85% LTV
4.24%
6.4%
85%
90% LTV
4.62%
6.5%
90%
95% LTV
4.89%
7.0%
95%
Guarantor mortgages
4.80%
7.8%
100%
Discount Variable
5.05%
7.7%
90%
Variable
5.05%
7.7%
90%
All First-Time Buyer
4.62%
6.5%
90%
moneyfacts buy to let white house icon

Best Buy-To-Let Rates

Product Type
Rate
APRC
Max LTV
2 Year Fixed
3.25%
9.7%
65%
3 Year Fixed
4.74%
7.8%
60%
5 Year Fixed
4.04%
7.4%
65%
10 Year Fixed
4.89%
6.5%
65%
60% LTV
3.25%
9.7%
65%
75% LTV
3.79%
8.7%
75%
80% LTV
4.65%
8.1%
80%
Discounted Variable
5.19%
8.9%
75%
Variable
5.19%
8.9%
75%
All Buy-To-Let
3.25%
9.7%
65%
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

Mortgages Explained

What is a mortgage?

A mortgage is the name given to a loan that is used to buy a property or piece of land where the loan is secured against the property being purchased. Mortgages are typically long-term loans with repayments spread over 25 years.

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.

 

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What type of mortgage is best?

 

 

 

Fixed rate mortgages

Variable and tracker rate mortgages

Offset mortgages

Good if:

You want to know exactly how much your monthly mortgage repayments will be

You believe mortgage rates will go down in the foreseeable future

You have a decent savings pot you are happy to leave untouched for a period

Not so good if:

You think mortgage rates might go down, and are worried you’ll end up paying over-the-odds on a fixed rate deal

You’re on a tight budget and need to know exactly how much your mortgage repayments will cost you every month

You may have to dip into your savings or want to earn savings interest

 

Fixed rate mortgages

fixed rate mortgage typically comes with an initial deal period, usually between two years and five years. The main advantage of this initial period is that you’ll know exactly what your monthly mortgage repayments will be. This will enable you to plan your budget effectively, as you’ll know exactly how much you need to ring-fence for your mortgage repayments each month.

It’s worth pointing out that fixed rate mortgages tend to come with higher rates than their variable mortgage counterparts, but this is often a small price to pay for the security that fixed mortgage interest rates can offer.

Variable and tracker rate mortgages

Variable and tracker rate mortgages typically have lower rates than their fixed rate counterparts, at least at the point you take the mortgage out, and can therefore be cheaper overall, but they come with far less security as the rates aren’t guaranteed.

As variable mortgage rates could change at any time, often depending on the Bank of England base rate (or other wider economic conditions), the amount you pay each month may vary. If you need to know the exact amount you’ll be required to pay back each month, then a variable rate mortgage is not for you. If, however, you believe that rates won’t go up, but are prepared for if they do, then a variable mortgage might be just right for you.

So long as you bear in mind that your mortgage rate may increase and have enough wiggle room in your budget to accommodate fluctuations in your monthly mortgage repayments, then a variable rate mortgage may be a good option for you.

Note: we’re referring here to the variable rate mortgages that can be found in our comparison charts, 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.

Offset mortgages

Many mortgage lenders have an offset option as part of their range; you can find the available offset mortgages by using our mortgage search 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 savings 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 larger deposit, but instead agree to put your funds aside and forgo 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 £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 deciding, as rates may be less competitive in this sector due to its lower profile.

 

Should I speak to a mortgage broker?

Mortgage brokers remove a lot of the paperwork and hassle of getting a mortgage, as well as helping you access exclusive products and rates that aren’t available to the public. Mortgage brokers are regulated by the Financial Conduct Authority (FCA) and are required to pass specific qualifications before they can give you advice.

 

Speak to an award-winning mortgage broker today

 

MAB is the preferred mortgage broker of MoneyfactsCompare

 

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Your home may be repossessed if you do not keep up repayments on your mortgage.

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’ll have paid off the full balance plus interest and will have nothing further to pay. 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, should you decide to remortgage onto a different product.

Interest-only mortgages

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 (though if your property increases in value over this time, then your equity will increase as well; conversely if your property loses value you could find yourself in a sticky situation).

You will only be repaying 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 will have to come up with a lump sum to pay off your outstanding mortgage 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 less common – they’re more often used in the buy-to-let sector, with full repayment the preferred choice for residential mortgages.

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Ashley Seager

Digital Marketing Manager

Mortgage guides

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Should I use a mortgage broker?

A mortgage broker specialises in finding mortgage lenders who will meet your needs for a mortgage. They do this by providing you with advice and recommending the mortgages most suitable for you. They will then manage completing your mortgage application.

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What are mortgage exit / redemption fees?

This guides outlines what mortgage exit and redemption fees are, and what you need to be aware of to avoid being left out of pocket.

This guides outlines what mortgage exit and redemption fees are, and what you need to be aware of to avoid being left out of pocket.

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Your choice of estate agent can play a crucial part in the process of buying or selling a property. Our helpful guide explains what to look for.

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Should I switch mortgage lenders?

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Is it a good idea to switch mortgage lenders? Our guide takes you through the basics and the benefit of making a change.

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Ask us anything

Mortgage news

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The best UK residential mortgage rates this week

27th March 2024

Each week the Moneyfactscompare.co.uk content team round up the very best mortgage rates available in the UK. Compare and apply today.

Leading five-year rates for remortgages and homemovers drop this week.

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Bank of England base rate unchanged at 5.25% for fifth consecutive time

21st March 2024

High interest rates prove effective as inflation slows significantly.

High interest rates prove effective as inflation slows significantly.

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Moneyfacts pick of the week

21st March 2024

The Moneyfacts Pick of the Week showcases the best of the latest products or rate changes to hit the consumer finance market.

This week's selection includes new fixed-rate bonds, fixed-rate mortgage deals and Santander's current account switching deal.

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Mortgage deals available for an average of just 15 days

14th March 2024

The average shelf-life of a mortgage product saw a month-on-month drop from 28 days to 15 days. Meanwhile, average fixed mortgage rates edged upwards.

The average shelf-life of a mortgage product saw a month-on-month drop from 28 days to 15 days.

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Average mortgage product fees rise to £1,141

5th March 2024

Average mortgage product fees rise to £1,141 while the proportion of deals offering cashback and other incentives drops.

Average mortgage product fees rises £46 in one year to £1,141.

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Two-year fixed mortgage rates see biggest monthly drop since 2022

14th February 2024

The average two-year fixed rates saw their largest monthly fall between January and February. Find out more about how average mortgage rates are changing.

The average fixed mortgage rate fell by 0.37 percentage points between January and February.

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Revealed: Winners of the Moneyfacts Consumer Awards 2024

8th February 2024

Financial professionals from across the industry gathered at the Royal Lancaster London to hear Tim Vine reveal the results.

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Bank of England holds base rate at 5.25% despite rise in inflation

1st February 2024

This marks the fourth consecutive time the base rate has gone unchanged.

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Bank of England base rate to remain at 5.25% heading into 2024

14th December 2023

The Bank of England’s Monetary Policy Committee voted 6 to 3 in favour of maintaining the base rate at 5.25% heading into 2024. Find out what this means for savers and mortgage borrowers.

The Bank of England’s Monetary Policy Committee voted 6 to 3 in favour of maintaining the base rate at 5.25% heading into 2024.

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Average two-year fixed mortgage falls below 6%

8th December 2023

The average rate for a two-year fixed mortgage fell below 6% today for the first time since mid-June of this year – dropping to 5.99% according to Moneyfacts’ data.

The average rate for a two-year fixed mortgage fell below 6% today for the first time since June of this year – dropping to 5.99% according to Moneyfacts’ data.

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Mortgage market sees highest product availability in over 15 years

16th November 2023

Alongside falling fixed rates and a longer average shelf-life, increased product availability demonstrates a buoyant period in the mortgage market.

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Bank of England holds base rate at 5.25% for second consecutive month

2nd November 2023

The Bank of England’s Monetary Policy Committee (MPC) voted 6 to 3 in favour of maintaining the base rate at 5.25% for the second consecutive month.

The Bank of England’s Monetary Policy Committee (MPC) voted 6 to 3 in favour of maintaining the base rate at 5.25% for the second consecutive month.

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Buy-to-let fixed rates drop as product choice rises

13th October 2023

Average fixed rates in the buy-to-let market have fallen month-on-month, Moneyfacts’ data reveals. The start of October saw the average rate for a two-year deal drop to 6.40%, down from 6.64% in September. Similarly, the average five-year fixed rate fell to 6.32% from 6.49% during the same months.

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Average five-year mortgage rate drops below 6%

28th September 2023

The average rate for a five-year fixed mortgage fell to 5.99% today – the first time this rate has dropped below 6% since 3 July 2023, according to Moneyfacts’ data.

The average rate for a five-year fixed mortgage fell to 5.99% today – the first time this rate has dropped below 6% since 3 July 2023.

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Bank of England keeps base rate unchanged for first time in almost two years

21st September 2023

The Bank of England’s Monetary Policy Committee (MPC) voted to keep the base rate at 5.25% today - the first time in almost two years the MPC have opted to keep borrowing costs unchanged.

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13th September 2023

Increased product choice, alongside falling average two and five-year fixed rates, may be an early sign of stability within the mortgage market.

Exceeding 5,300 at the start of September, product choice is at its highest level since February 2022.

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Higher mortgage costs have cooled demand in recent months, so will this trend continue over the long-term?

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Bank of England makes 14th consecutive base rate increase

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The Bank of England’s Monetary Policy Committee (MPC) voted to make its 14th consecutive base rate increase today.

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The Mortgage Charter: Should I consider an interest-only deal?

17th July 2023

Interest-only mortgages will temporarily reduce your monthly repayments, but you’ll likely pay more in total at the end of your term.

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11th July 2023

However, some of the lowest rates still stand at 5.64%.

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Rising mortgage rates: average two-year fixed deal breaches 6%

19th June 2023

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5th June 2023

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30th May 2023

Since last week almost 7% of mortgages have been withdrawn from market.

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18th May 2023

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11th May 2023

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10th May 2023

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27th April 2023

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20th April 2023

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6th April 2023

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23rd March 2023

At 4.25%, interest rates were last higher in October 2008.

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21st March 2023

The retail banking division of HSBC has reduced the rates on more than 30 of its fixed mortgages.

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Fixed mortgage average rates at a six-month low

21st March 2023

The average two- and five-year fixed rate mortgages are at a six month low, according to Moneyfacts data.

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2nd March 2023

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1st March 2023

Overall buy-to-let mortgage availability has now returned to its highest count since last July.

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2nd February 2023

The Bank of England’s Monetary Policy Committee (MPC) voted to increase the base rate by 50 basis points today.

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Moneyfactscompare.co.uk will never contact you by phone to sell you any financial product. Any calls like this are not from Moneyfacts. Emails sent by Moneyfactscompare.co.uk will always be from news@moneyfacts-news.co.uk. Be ScamSmart.

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