Mortgages Guide
Find the best mortgage rates for your situation. Compare deals from leading UK lenders for first-time buyers, remortgages and buy-to-let — free and no obligation.
Your mortgage is almost certainly the biggest financial commitment you will ever make. Over a 25-year term, even a small difference in interest rate can mean tens of thousands of pounds saved or spent. Whether you are buying your first home, remortgaging to a better deal, or investing in buy-to-let property, comparing what is available across the market is essential.
First-Time Buyer
Mortgages designed for first-time buyers with low deposits. Access government schemes, Help to Buy alternatives and the best rates for new homeowners.
Compare first-time buyer mortgages →Remortgage
Switch to a better rate when your fixed deal ends. Avoid falling onto your lender's expensive SVR and save hundreds per month.
Compare remortgage deals →Buy-to-Let
Specialist mortgages for rental property investors. Compare BTL rates, understand affordability criteria and find the right deal for your portfolio.
Compare buy-to-let mortgages →Understanding UK mortgages
A mortgage is a secured loan used to buy property. The property acts as collateral, meaning the lender can repossess it if you fail to keep up repayments. Most UK mortgages run for 25 to 35 years, though you will typically remortgage to a new deal every 2 to 5 years when your initial fixed or tracker rate ends.
The two main types are repayment mortgages (where each monthly payment covers interest plus some of the capital, so the loan is fully repaid at the end of the term) and interest-only mortgages (where you only pay interest each month and must repay the capital separately). Repayment is the standard choice for residential buyers. Interest-only is more common in buy-to-let, where landlords plan to sell the property to repay the loan.
Your loan-to-value ratio (LTV) — the percentage of the property value you borrow — is the single biggest factor affecting your rate. A 90% LTV mortgage (10% deposit) will cost significantly more than a 75% LTV deal. Building a larger deposit, or waiting until your equity grows before remortgaging, is one of the most effective ways to cut your mortgage cost.
When to remortgage
Most borrowers should start comparing remortgage deals 3 to 6 months before their current fixed rate expires. Mortgage offers typically last 6 months, so you can lock in a rate well ahead of time. If rates drop between now and your switch date, you can usually reapply for the better deal at no cost.
Falling onto your lender's standard variable rate (SVR) after a fix ends is one of the most expensive mistakes in personal finance. SVRs are typically 2–3 percentage points higher than the best fixed rates, which on a £200,000 mortgage could cost an extra £300–£500 per month. Setting a reminder to compare a few months before your deal ends can save thousands.
Compare mortgages from lenders including
Nationwide Barclays NatWest HSBC Halifax Santander Virgin MoneyThree steps to a better mortgage
Why comparing matters
Average mortgage rate
The average UK 2-year fixed mortgage rate is around 4.5% in 2026. The best deals for low-LTV borrowers can be significantly lower.
Typical LTV
The most competitive rates kick in at 75% LTV (25% deposit/equity). Each 5% LTV reduction unlocks better pricing from lenders.
Average FTB deposit
The average first-time buyer deposit in the UK is around £53,000. Government schemes and family support can help bridge the gap.
Average saving by switching
Remortgaging from an SVR to the best fixed rate saves the average borrower over £4,500 per year on a typical UK mortgage.
Mortgage Repayment Calculator
Find out what your monthly mortgage payments could look like. Enter your property price, deposit, interest rate and term below. The calculator also shows the difference between a 25-year and 30-year term so you can see how extending the term affects your total cost. All figures are estimates based on a standard repayment mortgage with a fixed interest rate throughout.
For illustration only. Actual rates depend on your circumstances, credit history and the lender's criteria. Does not include arrangement fees or other charges.
Stamp Duty Calculator
Stamp Duty Land Tax (SDLT) is a tax you pay when buying property in England and Northern Ireland. The amount depends on the purchase price and whether you are a first-time buyer. Scotland has its own Land and Buildings Transaction Tax (LBTT), and Wales charges Land Transaction Tax (LTT). The figures below use the current SDLT rates for England and Northern Ireland as of 2026.
Based on SDLT rates for England and Northern Ireland effective from April 2025. Does not include the 2% surcharge for non-UK residents or the 5% additional homes surcharge. Source: HMRC.
Watch out for these mortgage pitfalls
Getting a mortgage is a major financial commitment, and there are several common traps that catch buyers off guard. Being aware of these before you sign can save you thousands of pounds and a great deal of stress.
The lowest headline rates often come with arrangement fees of £1,000–£2,000. If you add the fee to your mortgage balance (as most borrowers do), you pay interest on it for the full term. On a 25-year mortgage at 4.5%, a £1,500 fee added to the balance costs you over £2,400 in total. Always compare the total cost of the deal, not just the rate.
If you repay your mortgage or switch lender during the fixed period, you may face an early repayment charge, typically 1–5% of the outstanding balance. On a £200,000 mortgage, that could mean a penalty of £2,000–£10,000. Check the ERC terms before committing, especially if there is any chance you might move or remortgage early.
When your fixed or tracker deal expires, your lender moves you to their standard variable rate (SVR). SVRs are typically 7–8% — far higher than the best fixed rates. On a £200,000 mortgage, the difference between a 4.5% fix and a 7.5% SVR is around £350 per month. Set a diary reminder 4–6 months before your deal ends to start comparing.
In England and Wales (but not Scotland), a seller can accept a higher offer from another buyer even after accepting yours. This can happen right up until contracts are exchanged, potentially after you have already spent money on surveys, legal fees and mortgage applications. Around 1 in 3 property transactions in England fall through before exchange, according to industry estimates.
Most mortgage offers are valid for 3–6 months from the date of issue. If your purchase takes longer than expected (common in long chains), your offer may expire and you will need to reapply — potentially at a higher rate if rates have risen. Ask your lender about extension policies before your offer lapses.
Mortgage comparison FAQs
Start by knowing your deposit size (or equity if remortgaging), the property value, and the term you want. Then compare the total cost including fees, not just the headline rate. A slightly higher rate with no arrangement fee can work out cheaper overall. Use a mortgage calculator to see the monthly payment and total cost for each deal.
Both have advantages. A broker can access exclusive deals not available directly and handles the paperwork. However, comparing online first gives you a benchmark so you know whether a broker's recommendation is genuinely competitive. Some of the best rates are only available direct from lenders.
The minimum deposit for most mortgages is 5% of the property value. However, rates improve significantly at 10%, 15%, and especially 25% deposit levels. First-time buyers can access government schemes like the Lifetime ISA to boost their deposit. The average UK first-time buyer deposit is around £53,000.
Fixed rates give certainty — your payments stay the same for the fix period (usually 2 or 5 years). Variable rates (trackers and SVRs) can go up or down with the Bank of England base rate. In a rising rate environment, fixing protects you. When rates are expected to fall, a tracker can save money. Most UK borrowers currently choose fixed rates for the security.
Stamp duty in England and Northern Ireland is charged in bands: 0% up to £250,000, 5% on the portion from £250,001 to £925,000, 10% from £925,001 to £1.5 million, and 12% above £1.5 million. First-time buyers pay no stamp duty on the first £425,000 of a property up to £625,000. Use our stamp duty calculator above for an exact figure.
An arrangement fee (also called a product fee) is charged by the lender for setting up your mortgage. They typically range from £500 to £2,000. You can pay the fee upfront or add it to your mortgage balance, but adding it means paying interest on the fee for the full term. Always factor arrangement fees into your total cost comparison — a lower rate with a high fee may cost more overall than a slightly higher rate with no fee.
When your fixed rate expires, you automatically revert to your lender's standard variable rate (SVR), which is usually significantly higher. On a typical mortgage, this can add £300–£500 to your monthly payment. Start shopping for a new deal 3–6 months before your fix ends — you can lock in a rate early, and if better deals appear before your switch date, you can usually reapply at no cost.
Most fixed-rate mortgages allow overpayments of up to 10% of the outstanding balance per year without penalty. Overpaying reduces both the total interest you pay and the length of your term. Even modest regular overpayments can save you tens of thousands over the life of the mortgage. Check your terms before overpaying, as exceeding the allowance triggers early repayment charges.
Most UK lenders offer 4 to 4.5 times your annual household income, though some specialist lenders go up to 5.5 times for higher earners. Your existing debts, credit card balances, childcare costs and living expenses also affect affordability. Getting a mortgage agreement in principle (AIP) before you start house-hunting gives you a clear budget and shows sellers you are a serious buyer.
Your lender will do a basic valuation, but this only confirms the property is adequate security for the loan — it is not a thorough inspection. A Level 2 HomeBuyer Report (£400–£700) is suitable for most properties, while a Level 3 Full Building Survey (£600–£1,500) is advisable for older, larger or unusual homes. Surveys regularly uncover defects worth thousands in repairs, and can give you leverage to renegotiate the purchase price.