Let's compare mortgages
Getting a mortgage can seem scary. It’s one of those milestones that says ‘I’m a grown up’ but it can be hard to figure out what mortgage is right for you.
So when you compare mortgages it’s really important you understand what’s available – and we can help you, from explaining how to save for one in the first place to getting a second mortgage. We’ve even got some top tips on how to maximise your chances of getting your mortgage approved.
When you compare with us, we’ll show you the types of mortgage available, the monthly repayments, and tell you about the fees you can expect to pay. You can also compare mortgage rates for buy to let and first time buyer mortgages right here too. And if you’re looking to find a better interest rate or your current contract’s come to an end – why not look at remortgaging?
Why compare mortgages with comparethemarket.com
We help you compare mortgages from financial providers, helping you find great rates in the mortgage market.
Everything is arranged in order of monthly payment. Our easy-to-understand categories will also help you check rate types, arrangement fees and introductory rates.
You can even arrange for a call-back from our trusted partner MoneyQuest who can guide you through the mortgage application process and establish whether you are likely to be accepted. They have over 20 years’ experience in helping customers secure the perfect mortgage.
What do you need to compare mortgages?
You’ll only need to enter basic details including the type of mortgage, payment options, the property’s value, how much you want to borrow and over how long.
What else can I compare by?
We’ll let you compare mortgages by rate type, which include:
Fixed rate: With this type of mortgage, the interest rate stays the same throughout the period of the mortgage. A period normally lasts between one and five years, but you can get ten year fixed rates. This type of mortgage could be good if you need to stick to a budget, as it’s predictable. However, it may not be so great if mortgage base rates go down, leaving you paying over-the-average.
Tracker: This type of mortgage has an interest rate that is tied to the Bank of England base rate. The mortgage changes with the base rate. Most trackers have terms of two or five years, but you can get lifetime (aka term) tracker mortgages. Trackers could be an attractive option as their rates tend to be lower than those on fixed rate mortgages. However, you need to be prepared for shifting repayment amounts.
Discount: Another type of variable mortgage, discount mortgages differ from trackers in that they are not tied to the Bank of England base rate. Instead, they are linked to the lender’s standard variable rate (SVR), normally over one to five years. Discount mortgages could be great as monthly repayments could fall as well as rise, but are a little more complex and unpredictable compared to trackers.
Offset: Probably the most complicated option, offset mortgages link your savings to your mortgage debt. With this type of mortgage, you don’t earn interest on your savings - instead, your money is set against your mortgage so that you pay less interest on the debt. Available with fixed or variable rates, offsets are great for paying your mortgage off quickly. They also offer a bonus benefit for those in the higher or top tax brackets, as you don’t pay tax on your savings.
What are the common fees when applying for a mortgage?
Advice fee: If you seek help from a mortgage advisor, you may have to pay for their services.
Booking fee: Tends to be around £99 (although some lenders don’t charge at all). This ‘reserves’ your loan as the application goes through. It’s worth noting that this won’t be refunded if you decide not to take out the mortgage.
Arrangement fee: This is what you pay your lender for setting up the mortgage. While a typical price will be around £1,000, it could be as much as £2,000. You can pay upfront, or roll it into your mortgage - but remember you’ll then be paying interest.
Valuation fee: There’s no set price for a valuation, and some lenders offer them free. They cover the lender surveying the property you want to buy, to ensure everything is in order and that the property is adequate security for the mortgage.
Legal fees: Usually charged as a proportion of the purchase price, these cover a solicitor to do all of the legal paperwork. They include costs of Stamp Duty and search fees.