Compare mortgage rates

With a fixed-rate mortgage, the interest rate on your mortgage is fixed for an agreed period of time. This is typically between two and five years, though some deals let you lock your rate in for up to 10 years or even longer. 

This type of mortgage could be good if you want the peace of mind that your monthly repayments won’t change during your fixed term, which can help you with budgeting. But on the downside, it can be frustrating if rates in the wider market go down and you're stuck paying a higher rate.

Once the fixed-rate period is over, you’ll be automatically switched to your mortgage provider’s standard variable rate (SVR), which is usually much higher, unless you remortgage to a new deal.

There are a few different types of variable-rate mortgage:

Tracker mortgage – the mortgage interest rate you pay is directly linked to another rate – usually the Bank of England base rate – plus a set percentage, for example 1%. This means your mortgage interest rate changes each time the rate it’s linked to changes, and can go both up and down.

Most trackers last two to five years, but you can get lifetime (also known as term) tracker mortgages too.

Discount – discount mortgages are based on the lender’s standard variable rate (SVR) minus a set percentage, and usually last for between two and 10 years. With a discount mortgage, your monthly repayment could fall or rise whenever your lender decides to change its SVR.

Standard variable rate (SVR) – this is the interest rate that mortgage lenders charge once your introductory deal period (e.g. your two or five-year fixed rate) ends. This is often much higher than the rate you could get on a fixed or other variable-rate mortgage.

Although mortgage lenders roughly track the Bank of England base rate, they can decide to increase or decrease their SVR whenever they wish.

Probably the most complicated option, offset mortgages link your savings to your mortgage debt to help reduce your interest payments.

With this type of mortgage, you don’t earn interest on your savings. Instead, they’re ‘offset’ against your mortgage so that you pay interest on a smaller proportion of the debt. For example, if you have a mortgage of £200,000 and savings of £30,000, you’ll only pay interest on the net amount: £170,000.

This can be advantageous for higher and top-rate taxpayers as, by sacrificing the interest you’d otherwise earn on your savings, you also avoid paying tax on that interest.

As the name suggests, with an interest-only mortgage you only pay the interest on the loan each month. This means lower monthly repayments, but it also means that at the end of the mortgage term you have to pay back the entire amount you originally borrowed (the ‘capital’). Interest-only mortgages are often used for buy-to-let properties.

Before offering you an interest-only mortgage, your lender will need to be satisfied that you have a plan in place to repay the capital at the end of the mortgage term. For example, you could pay off the outstanding balance with savings, an inheritance or by selling your property.

A guarantor mortgage is a type of mortgage where another person – usually a family member or close friend – agrees to cover the mortgage repayments if you’re unable to.  

Guarantor mortgages can be a way to get mortgage approval if you’re a first-time buyer with a limited deposit or you have a poor credit history.

However, it’s a huge financial responsibility for both you and your chosen guarantor. If neither of you can afford to cover the repayments, you could both end up losing your homes.

Guarantor mortgages are also unlikely to offer the best mortgage rates. Think carefully about whether you can afford the monthly repayments before deciding if it’s the right option for you or the person providing the guarantee.

The cheapest mortgage rates are typically offered to borrowers with larger deposits and the best credit ratings. If you want to secure a decent rate, it could be worth building your credit score before you apply for a mortgage.  

There are a few ways to help improve your credit rating, including: 

• Registering on the electoral roll
• Checking your credit report for any errors or out-of-date information
• Always paying your bills on time
• Avoiding applying for different types of credit over a short period as this can make the lender think you’re having financial difficulties.

An agreement in principle is an offer of a mortgage from a provider. It’s valid for a limited time – typically 60 to 90 days.

Some estate agents or sellers will require you to have a mortgage in principle agreement before you make an offer on a house, particularly if you’re a first-time buyer. This is because it shows you can (in principle) borrow the amount.

Once you’ve found the right property, you can then go back to your potential lender and finalise the terms of your mortgage (or shop around for a better deal).

Mortgage protection insurance or mortgage payment protection insurance (MPPI) can cover the cost of your mortgage if you lose your job or can’t work due to illness. Many policies will pay out for a maximum of a year.

This safety net can be particularly useful if you’re self-employed.

Other types of insurance, including life insurance and income protection insurance, can also be used to help cover mortgage payments.

Lenders will almost always require you to have buildings insurance in place from the moment you exchange contracts. They may also ask that you have a valid life insurance policy as a condition of your mortgage offer.

Before you start looking at properties, it’s a good idea to get a mortgage agreement in principle to help establish your budget. 

You’ll need to provide your mortgage broker or lender with details about your finances to get one. 

Agreements in principle are normally valid for 60-90 days. Once your offer on a property has been accepted, you can start the full mortgage application.

It's possible to get a mortgage with only a 5% deposit, though lenders tend to prefer it if you can put in 10% or 20%. Remember, the higher your deposit, the better rates you’re likely to get.

If you're saving for a mortgage deposit there are various government schemes to help you get a foot on the property ladder, including Lifetime ISAs.

When you run a mortgage rates comparison with us using the green buttons at the top of the page, you’ll find mortgage deals from across the market. These include some of the biggest providers in the UK, such as Barclays, Halifax, HSBC, Nationwide, NatWest and Santander.

Some deals are available direct from the lender while others are only available through a mortgage broker, such as our trusted partner London & Country Mortgages Ltd (L&C).