Compare our best mortgage rates and deals

The best mortgages have low interest rates and minimal (or no) fees. Compare our best fixed, variable and discount mortgages here. Explore our mortgage guide to learn about how mortgages work and how much deposit you need.

Mortgage type

Property price

£

Mortgage amount

£

Mortgage term

years

Initial rate type

Deal length

Repayment type

Our best mortgage rates

  • Halifax 2 Year Fixed mortgage

    Initial rate 1.49%. APRC 4%. Set-up fees £1,495
  • Halifax 2 Year Fixed mortgage

    Initial rate 1.49%. APRC 3.9%. Set-up fees £1,495
  • Halifax 2 Year Fixed mortgage

    Initial rate 1.5%. APRC 3.9%. Set-up fees £995
  • Halifax 2 Year Fixed mortgage

    Initial rate 1.5%. APRC 4%. Set-up fees £995
  • Barclays 2 Year Fixed mortgage

    Initial rate 1.51%. APRC 3.9%. Set-up fees £999
  • Barclays 2 Year Fixed mortgage

    Initial rate 1.53%. APRC 3.8%. Set-up fees £999
  • Lloyds Bank 2 Year Fixed mortgage

    Initial rate 1.54%. APRC 3.8%. Set-up fees £1,499
  • Nationwide Building Society 2 Year Fixed mortgage

    Initial rate 1.54%. APRC 3.9%. Set-up fees £999
  • Lloyds Bank 2 Year Fixed mortgage

    Initial rate 1.54%. APRC 3.8%. Set-up fees £999
  • Barclays 2 Year Fixed mortgage

    Initial rate 1.55%. APRC 3.9%. Set-up fees £999
  • We've found 1071 mortgage deals

    Halifax

    2 Year Fixed

    Initial rate

    1.49%

    until 28-02-2022

    APRC

    4%

    overall cost for comparison

    Set-up fees

    £1,495

    Monthly payment

    £679.09

    for 24 months

    Halifax

    2 Year Fixed

    Initial rate

    1.49%

    until 28-02-2022

    APRC

    3.9%

    overall cost for comparison

    Set-up fees

    £1,495

    Monthly payment

    £679.09

    for 24 months

    Halifax

    2 Year Fixed

    Initial rate

    1.5%

    until 28-02-2022

    APRC

    3.9%

    overall cost for comparison

    Set-up fees

    £995

    Monthly payment

    £679.89

    for 24 months

    Halifax

    2 Year Fixed

    Initial rate

    1.5%

    until 28-02-2022

    APRC

    4%

    overall cost for comparison

    Set-up fees

    £995

    Monthly payment

    £679.89

    for 24 months

    Barclays

    2 Year Fixed

    Initial rate

    1.51%

    until 31-01-2022

    APRC

    3.9%

    overall cost for comparison

    Set-up fees

    £999

    Monthly payment

    £680.69

    for 24 months

    Barclays

    2 Year Fixed

    Initial rate

    1.53%

    until 31-01-2022

    APRC

    3.8%

    overall cost for comparison

    Set-up fees

    £999

    Monthly payment

    £682.29

    for 24 months

    Lloyds Bank

    2 Year Fixed

    Initial rate

    1.54%

    until 28-02-2022

    APRC

    3.8%

    overall cost for comparison

    Set-up fees

    £1,499

    Monthly payment

    £683.09

    for 24 months

    Nationwide Building Society

    2 Year Fixed

    Initial rate

    1.54%

    APRC

    3.9%

    overall cost for comparison

    Set-up fees

    £999

    Monthly payment

    £683.09

    for 24 months

    Lloyds Bank

    2 Year Fixed

    Initial rate

    1.54%

    until 28-02-2022

    APRC

    3.8%

    overall cost for comparison

    Set-up fees

    £999

    Monthly payment

    £683.09

    for 24 months

    Barclays

    2 Year Fixed

    Initial rate

    1.55%

    until 31-01-2022

    APRC

    3.9%

    overall cost for comparison

    Set-up fees

    £999

    Monthly payment

    £683.89

    for 24 months

    Not ready to get a mortgage?

    Learn more about getting a mortgage

    Show simple deals list

    Representative example:

    If you borrowed £170,000 payable over 25 years, with an initial fixed-rate for two years at 2.39%, your monthly payments would be £754.32 for 24 months. This would then revert to a standard variable rate (SVR) of 4.53% for the remaining 23 years, costing £932.76 per month for 276 months. The total amount payable over the full term would be £276,082.62, including fees and interest.

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

    What is a mortgage?

    A mortgage is a secured loan that most people need in order to buy a property.

    You stump up a deposit and a mortgage lender loans you the rest. You pay back the loan (plus interest) over a period of time known as the mortgage term. The average mortgage term in the UK is 25 years.

    You’ll most likely need to put down a deposit of at least 5%, though there are a few deposit-free mortgages available.

    The relationship between how much you borrow and your deposit is called the loan-to-value ratio, or LTV.

    Cheap mortgages are often reserved for those with bigger deposits and therefore lower LTVs.

    How does a mortgage work?

    A mortgage is a loan secured against your property. This means the lender could repossess it if you do not keep up with the monthly repayments. Or, they could force you to sell it to pay back what you owe.

    As a home buyer, you pay the seller the full amount (your deposit plus the mortgage loan) via your solicitor or conveyancer. You then pay off the mortgage in monthly instalments to the lender.

    The mortgage term is the agreed time you have to pay it off: usually between 25 and 30 years.

    The size of those monthly mortgage repayments is decided by two things: the mortgage term and the mortgage rate.

    What is a mortgage rate?

    The mortgage rate is the rate of interest charged on a mortgage loan by the lender. In short, the mortgage rate is the cost of the loan.

    The lower the mortgage rate, the smaller your monthly repayments.

    When you compare mortgages, the advertised mortgage rates are the annual amount of interest that you would be charged on the loan.

    In general, when looking for the best mortgage deal, you are looking for the lowest mortgage rate.

    Watch out for large up-front fees, though! Some mortgages have fees that nibble away or completely cancel out a low mortgage rate.

    What are the different types of mortgage?

    Mortgages are divided into the following payment types:

    • Interest-only
    • Repayment

    With an interest-only mortgage you just pay the interest on the loan during the mortgage term. This means the monthly instalments are lower than with repayment mortgages. At the end of the mortgage term, you must repay the full amount that you originally borrowed (this is called the principal debt).

    For example: your monthly repayments on a £200,000 interest-only mortgage with a rate of 2% would be £333 (£4,000 per year). Your payments do not reduce the principal, so at the end of the mortgage term, you still owe £200,000.

    You could repay this with savings, investments or by selling the property.

    With a repayment mortgage, your monthly payments pay off the interest and some of the original loan. The amount of interest you pay gradually goes down until the majority of your payments go towards shifting the actual debt.

    At the end of the mortgage term, you do not owe anything to the lender and own the property outright.

    There are two main rate types for both repayment and interest-only mortgages:

    • Fixed-rate
    • Variable-rate

    As the names suggest, fixed-rate mortgages have a fixed interest rate, usually for two, three, five or 10 years.

    Variable-rate mortgages have interest rates that the lender can change at their discretion. Variable rates often move in line with the Bank of England base rate.

    What do I need to get a mortgage?

    Firstly, you need a deposit - a lump sum of cash to put towards a property. You may only need a 5% deposit because more lenders now offer 95% LTV mortgages.

    Usually, the best mortgage rates are reserved for borrowers with deposits of 15% or above. So, the more you can save up, the more money you could save over the entire mortgage term.

    You need to prove to the lender you have regular income that covers the cost of monthly mortgage payments and then some.

    Try not to overstretch yourself when you are working out what mortgage you can afford. It's worth having a contigency fund should your circumstances change or unexpected costs crop up.

    How do I compare mortgages and find the best one?

    To compare mortgages and find the best deal, you need to figure out your priorities. Do you want the security of fixed monthly payments? If so, a fixed-rate deal is the obvious choice. Or, would you prefer the lowest possible monthly payments? In which case, an interest-only mortgage might be better.

    Compare mortgage deals online, talk directly to a mortgage lender, or speak to a mortgage broker.

    Find out how much a mortgage lender is willing to lend to you based on your financial circumstances. An agreement in principle (AIP) acts as proof of this.

    Is remortgaging the same as getting a mortgage?

    The process of remortgaging is similar to when you first got your mortgage. You need an AIP, your lender (existing or new) performs affordability checks, and you need all the same paperwork.

    But instead of using your savings as a deposit, you can now use home equity. Home equity is the percentage of the property you own.

    Repayment mortgages allow you to build equity so you gradually start to own more and more of the property. This means that when you come to remortgage, you can opt for a mortgage with a lower LTV, and therefore, better rates.

    For remortgage comparisons, see the table above.

    Mortgage interest rates - July 2019

    Product TypeInitial Interest RateStandard Variable Rate
    2 Year Fixed1.31%4.19%View
    3 Year Fixed1.55%4.99%View
    5 Year Fixed1.71%3.4%View
    85% LTV1.63%4.24%View
    Discounted Variable1.29%5.79%View

    Compare all our best mortgage rates

    Edited by: Sarah Guershon

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    Last updated: 2 August, 2019

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