The best mortgage rate could save you 1000’s

We are a whole of market award winning mortgage broker with access to 100+ lenders, these are some of the lenders we work with

When looking for the best mortgage rates a lot of people focus on making sure they can get the mortgage they require to buy their dream home. Once you know that you can get the mortgage, an important factor is then ensuring the monthly payment is affordable for you. Getting the best mortgage rate will help to ensure your monthly payment is attainable.

What is the best mortgage rate?

As of March 2024 the best mortgage rate available is 4.08% for a 5 year fixed interest rate.

How do I know what the best mortgage rate is for me?

The best mortgage deals will depend on a lot of factors. Below are some factors that impact the best mortgage deal for you;

  • How long you are looking to take a mortgage product for
  • The amount of equity you have/your loan to value
  • How much your mortgage balance is
  • The full term of your mortgage
  • The interest rate on the mortgage
  • Any fees involved with the mortgage

The best mortgage deal will depend on how long you are looking to take a mortgage product for. Lenders chose which market they are going to offer the best mortgage deal in based on their current risk appetite.

The amount of equity you have in a property reduces the loan to value. The more equity you have in your property also reduces the risk that you pose to a lender. They will therefore offer you a lower interest rate as you are a more favourable customer. The best mortgage deal for someone with 10% equity in their property will look different to the best mortgage deal for someone with 50% equity.

Some lenders have products based on the loan size. This can vary from products being available only for small loans or beneficial products being offered for high value mortgages. The market which a lender choices to offer their best mortgage deals in, will depend on their target market at the time.

The standard mortgage term is 25-35 years for most people when first starting their mortgage. The full mortgage term is what dictates your monthly payment. A large focus is on the monthly payment so a lot of people will take the mortgage term based on this. You can change your mortgage term when you remortgage to ensure that you maintain a comfortable monthly payment. Taking a mortgage term over a longer timeframe will mean you pay more interest by paying the mortgage for longer.

The best mortgage deal factors in the interest rate and any fees involved. Your advisor at Willow Brook mortgages will look at the best mortgage deal based on the overall cost over the timeframe you are taking the product for.

Below is an example of how different products can be suitable for different customers;

Customer 1 – mortgage of £300,000 over a 35 year term

  • product 1 – a 2 year fixed interest rate of 5.34% with no fees. A monthly payment of £1580. Over 24 months this would be £37,920
  • product 2 – a 2 year fixed interest rate of 4.69% with a £999 arrangement fee. A monthly payment of £1455. Over 24 months this would be £34,920 plus the £999 fee giving a total of £35,919
  • For customer 1 it would work out that product 2 is the best mortgage deal over the 2 years.

Customer 2 – a mortgage of £50,000 over a 35 year term

  • product 1 – a 2 year fixed interest rate of 5.34% with no fees. A monthly payment of £263. Over 24 months this would be £6312
  • product 2 – a 2 year fixed interest rate of 4.69% with a £999 arrangement fee. A monthly payment of £243. Over 24 months this would be £5832 plus the £999 fee giving a total of £6831
  • For customer 2 it works out that product 2 would be the best mortgage deal over a 2 year period.

These examples show how the mortgage balance can affect which interest rate and fee set up is the best mortgage deal for each client.

These factors show how important it is to speak with an experience mortgage broker to find the best mortgage deal. We can ensure that all factors are looked at to save you money on your mortgage.

The best mortgage will change depending on your circumstances such as your deposit, how long you fix your mortgage deal for and whether there is anything unusual about the property or your personal circumstances. Your mortgage advisor will discuss all of your circumstances to find the best mortgage deal for you from across the whole of the market.

There is no exact answer to this because it should be based around your personal circumstances. There are a lot of factors which contribute towards this decision such as any changes to your personal circumstances, any renovation work and how long you plan to be in the property. When we have discussed all of your details, your advisor will be able to advise you on how long you should look at fixing your interest rate.

To find the best mortgage deal, you will need to speak to a mortgage broker with access to the whole market. With access to over 100 lenders we can research the market to find the best product for your mortgage. To ensure you have access to the best mortgage rates, you can also ensure your credit score and payments are kept up, increase your deposit or equity as much as possible and keep your debt levels low to help with affordability.

No, is the short answer. The majority of banks and building societies don’t offer better rates to their current account holders or even their employees. A mortgage broker with access to the whole market will be able to check for the best mortgage deal including checking what your current lender can offer to you if you currently have a mortgage. Willow Brook Mortgages get exclusive rates with some lenders as well, meaning that sometimes we can get you a better interest rate than going directly to your bank or building society.

The mortgage market changes daily so the lender with the lowest interest rate will change based on your circumstances and the current market. We can secure the best interest rate for you but also check the market for any better products until you complete.

Traditionally people used to go to their bank for a mortgage, where you would book an appointment potentially weeks in advance and sit for hours while they arranged your mortgage. This is time consuming and would also mean that if your bank cannot offer the mortgage or don’t have the best interest rate, you would miss out. If you take a mortgage broker through a broker like Willow Brook Mortgages, you will have access to the whole of the market which is over 100 lenders. This gives you access to the best interest rate to save money but also all of the market for criteria and affordability to ensure if a mortgage is possible that you will have access to it.

A whole of market mortgage broker with access to over 100 lenders will be able to find you the best mortgage deal. Other factors to consider are ;

  • * Ensure your credit score is good. You will need to keep your payments up to date and ideally ensure there are no arrears over the last 6 years. Close or update old accounts to make sure all of your addresses match and your name shows the same on all of your accounts. Try to keep your credit card use at 60% of your credit limit and avoid taking new commitments in the 3-6 months before you look at taking out a mortgage. While these aren’t essential for a mortgage, they will help to ensure you can get the best interest rate for your mortgage.
  • * Your deposit or equity – a higher deposit will give you a better interest rate. A mortgage is available from 5% deposit, but as you increase your deposit by 5-10% the interest rates will drop.
  • * Keep your income high and your debts low – these aren’t always factors you have full control over but ensuring your affordability is as high as possible will help you qualify for the best mortgage deals.

Who is offering the best mortgage rates UK?/ Who has the cheapest mortgage rates?

The mortgage market changes on a daily basis, so the lenders offering the best mortgage rates will change with this as well. The key to finding the best mortgage rates is to use a whole of market mortgage broker. With access to over 100 lenders, Willow Brook mortgages will find you the best mortgage rate. We look across 100 lenders for your specific circumstances to find the best deal. We will secure this interest rate for you and with our free rate check facility you have the peace of mind that you will get the best mortgage rate.

Is it better to get a mortgage from a bank or broker UK?

When going direct to a bank for a mortgage you will only have access to the deals that 1 bank can offer to you. In comparison if you are using a broker who is whole of market they will usually have access to around 80-100 lenders. This could save you £1000’s on your mortgage by finding the best mortgage rate and not just being tied to 1 bank.

Another factor when using a bank is that they will usually have long waiting times for appointments, a mainline number to call for updates and queries that can be a pay per minute number with long hold times and also a customer service team. When using a broker like Willow Brook Mortgages we will be able to talk straight away in most scenarios or schedule an appointment promptly at a convenient time for you. You will be assigned your own mortgage advisor who will give you their direct contact details and always come back to any calls or emails quickly.

How many years is best for a mortgage?

This is dependant on your full circumstances so there is not a specific answer to this question. While some people are focused on paying their mortgage off as quickly as possible, others will want to keep their outgoings lower. You will also want to consider how long you will stay in the property for and the long term goal. Our specialist advisors will talk you through the options and advise you on what is best for your personal circumstances.

Who is best to get a mortgage from?

The best mortgage lender is dependant on the time you are looking for a mortgage, the mortgage you require and your personal circumstances. This is where using an independant mortgage broker will also benefit you. You could be declined by a lender due to things such as credit score, the property or affordability. These vary between lenders so an experienced mortgage broker will be able to guide you on the best lender for your mortgage.

Last updated 01/03/2024