Buying a Home
Remortgaging
Landlord
Specialist
Secured Loans
Debt Consolidation
Conveyancing
Finding a Solicitor
Mortgages
Mortgage rates change constantly and depend on your deposit, credit history, and the type of deal you choose. This guide explains how rates are set, what pushes them up or down, and how to compare fixed, tracker, and variable deals for your circumstances.
UK mortgage rates aren't a single published figure. They vary by mortgage type, deposit size, and your personal circumstances, and they change frequently as lenders reprice in response to Bank of England decisions and market competition.
The rate you're actually offered depends on your loan-to-value (LTV) ratio, credit history, income, and the property you're buying. Because rates move so often, the most reliable way to find out what you'd pay is to speak to a mortgage advisor for a personalised, up-to-date comparison.
When people search for mortgage rates UK lenders currently offer, they're often hoping for one clear number. In reality, there's no single rate that applies to everyone. Lenders price mortgages individually based on your deposit, credit history, the mortgage type, and how much risk they're taking on by lending to you.
Rates also move for reasons that have nothing to do with you personally. The Bank of England base rate influences how lenders price both tracker and fixed deals, and lenders regularly adjust their pricing in response to swap rates, inflation expectations, and competition from other lenders.
This means the mortgage rate landscape can shift within weeks, sometimes days. A guide that quotes today's headline rates would be out of date almost immediately, so instead of publishing figures that go stale, this page explains how the different rate types work, what drives the rate you're offered, and how to compare deals properly.
Don't assume the rate advertised on a comparison site is the rate you'll actually get. Headline rates are usually reserved for the lowest-risk borrowers with the biggest deposits. An advisor can tell you what you're realistically likely to qualify for before you apply.
What drives your rate
Your loan-to-value (LTV) ratio is one of the biggest factors in the rate a lender offers you. It measures how much you're borrowing against the value of the property.
How to work out your LTV: divide your mortgage amount by your property value, then multiply by 100.
For example, if you're buying a £300,000 home with a £60,000 deposit, your mortgage would be £240,000. That gives an LTV of 80% (£240,000 divided by £300,000, multiplied by 100).
Lenders see lower-LTV borrowers as less risky, because there's more equity protecting their loan if house prices fall. That's why someone with a 40% deposit typically has access to noticeably better rates than someone with a 10% deposit.
Every few percentage points of extra deposit can move you into a better pricing tier, so it's worth checking with an advisor whether a slightly bigger deposit would change what you're offered.
Most UK mortgages use one of a handful of rate structures. Understanding how each behaves helps you weigh up certainty against flexibility.
Your interest rate and monthly payment stay the same for an agreed period, typically 2, 3, 5, or 10 years, regardless of what happens in the wider market. This makes budgeting easier and protects you if rates rise during that time. Most lenders let you overpay by up to 10% a year without a penalty, but leaving the deal early beyond that usually means paying an early repayment charge.
A tracker rate moves in line with the Bank of England base rate, plus a fixed margin set by the lender. If the base rate goes up or down, your payments move with it. Many trackers carry no early repayment charge, which gives you the flexibility to switch if a better deal appears.
This is your lender's default rate. You move onto it automatically once your fixed or tracker deal ends, unless you arrange a new deal first. SVRs are typically much higher than the rates lenders advertise, so it's rarely worth staying on one for long.
These offer a discount off the lender's SVR for a set period. They're less common than fixed or tracker deals, and because your rate changes whenever the lender adjusts its SVR, they're harder to predict.
With an interest-only mortgage, your monthly payments cover only the interest, not the loan itself. This keeps payments lower during the term, but you'll need a credible repayment plan in place to clear the full loan amount when the mortgage ends.
Not sure which type suits you?
An advisor can talk you through the trade-offs and compare options from a wide range of lenders based on your circumstances.
If you're buying your first home, you'll often face slightly higher rates than someone remortgaging with a large amount of equity, simply because first-time buyer deposits tend to be smaller. That said, lenders compete hard for first-time buyer business, and choice at this end of the market has grown in recent years.
Lenders offer mortgages with deposits as low as 5%, though your rate will typically be higher than at lower loan-to-value tiers. Some lenders also offer "family assist" or "springboard" mortgages, where a parent's savings act as security, letting you borrow with a smaller deposit of your own.
Various schemes have been introduced over the years to support first-time buyers with smaller deposits, encouraging more lenders to offer higher loan-to-value mortgages. Scheme availability changes, so it's worth asking an advisor what's currently open to you.
For a closer look at deposit sizes, schemes, and affordability, see our first-time buyer mortgage rates guide.
First-time buyers sometimes assume a small deposit rules them out of a competitive rate entirely. It doesn't. It usually means a smaller pool of lenders and slightly higher pricing, not no options at all. It's worth exploring what's realistically available before ruling anything out.
If your current deal is coming to an end, remortgaging to a new rate rather than letting it lapse can make a meaningful difference to your monthly payments. Large numbers of fixed and tracker deals reach the end of their term every year, and many people don't act until the deadline is close.
You can typically lock in a new rate several months before your current deal ends, often up to six months ahead. This lets you secure a rate while keeping the option to switch if a better deal appears before your existing one expires.
If your fixed or tracker deal has already ended and you've moved onto your lender's standard variable rate, it's usually worth remortgaging as soon as you reasonably can. SVRs are typically far higher than the deals lenders advertise, and the savings from switching often cover the cost of any arrangement fees several times over.
See our remortgage rates guide for more detail on how remortgage pricing works.
If you're struggling to keep up with your mortgage payments, free and impartial guidance is available from MoneyHelper or by calling 0800 138 7777.
Buy-to-let mortgages typically carry higher rates than residential mortgages, because lenders view rental property as higher risk. Affordability is also assessed differently.
Most lenders use a "rental coverage" test rather than relying mainly on your personal income. Your expected rental income typically needs to cover around 125-145% of the mortgage payment at a stressed interest rate set by the lender, so your maximum borrowing often depends more on achievable rent than your salary.
Buy-to-let deals often come with a fee charged as a percentage of the loan amount, rather than a flat fee. A percentage-based fee can add a significant amount to your upfront costs on a larger loan, so always check whether a fee is flat or percentage-based before comparing deals.
Most buy-to-let mortgages fall outside Financial Conduct Authority regulation, so it's especially important to compare terms carefully. See our buy-to-let mortgage rates guide for more detail.
Beyond your deposit and the mortgage type, lenders weigh up several personal factors before deciding what rate to offer you.
Lenders check your credit file with agencies such as Experian, Equifax, and TransUnion. A strong credit history generally opens up more competitive rates, while missed payments, defaults, or high existing borrowing can mean higher rates or a smaller choice of lenders.
Before applying, it can help to:
Lenders assess affordability by looking at your income against your outgoings, and they'll stress-test whether you could still manage payments if rates rose. Self-employed borrowers typically need two to three years of accounts or tax returns, though some lenders accept less for established businesses with strong turnover.
Non-standard construction, such as a thatched roof, timber frame, or concrete construction, a short lease with under 70 years remaining, or a property above commercial premises can all limit your lender options and affect the rate you're offered.
Rates also vary depending on the length of the deal, the fee structure, and whether the product allows overpayments. A deal with a higher fee sometimes carries a lower rate, and vice versa, which is why comparing total cost matters more than comparing headline rates alone.
Before you apply
This is one of the biggest decisions when choosing a mortgage, and there's no universally right answer. It comes down to your appetite for risk and how much certainty you want.
The trade-off is that you won't automatically benefit if rates fall significantly, and leaving the deal early usually triggers an early repayment charge, typically 1-5% of your outstanding balance.
The trade-off is uncertainty: if the base rate rises, your payments rise with it.
An advisor can talk through current market conditions alongside your own plans and appetite for risk. See our fixed vs variable rate mortgage guide for a closer look at both options.
There's no prize for guessing right. If a fixed rate lets you budget with confidence and fits your circumstances, that's often reason enough to choose it over a tracker, even if tracker deals look cheaper on paper right now.
The headline rate isn't the whole story. Fees can add a significant amount to the true cost of a mortgage, and a lower rate doesn't always mean better value once fees are taken into account.
A lower rate with a large arrangement fee isn't automatically better value than a slightly higher rate with no fee. Work out the total cost, interest plus fees, over the period you plan to keep the deal, rather than comparing headline rates in isolation.
Most lenders let you add the arrangement fee to your mortgage balance instead of paying it upfront. This can help with cash flow at completion, but bear in mind you'll pay interest on that fee for the rest of the mortgage term, which increases the total amount you repay.
Finding the right mortgage isn't just about picking the lowest headline rate. A practical, step-by-step approach gets better results.
Before comparing, work out your property value or purchase price, your deposit or equity amount, your resulting LTV percentage, and your realistic budget for monthly payments.
For each mortgage you're considering, look at the total interest over the deal period plus all fees, including arrangement, valuation, and legal costs, rather than the rate alone.
Consider how long you're likely to stay in the property, whether you might need to move within the deal period, and whether your income could change. A shorter fix gives you flexibility if your plans are uncertain, while a longer fix offers more commitment and certainty.
An advisor compares a wide range of lenders and can often access deals not available direct. Many work on a fee-free basis, earning commission from the lender when your mortgage completes instead of charging you directly.
After you choose a rate
A straightforward application typically takes 2-4 weeks to offer, with a further 4-8 weeks to completion for purchases.
Get a decision in principle
A lender gives an initial indication of how much they might lend, based on a soft credit check that shouldn't affect your credit score.
Submit your full application
You'll provide documents covering income, outgoings, identification, and details of the property, either directly or through an advisor.
Valuation and underwriting
The lender values the property and assesses your application in detail against their lending criteria.
Receive your mortgage offer
Once approved, the lender issues a formal offer confirming the rate, terms, and amount you're borrowing.
Complete on your mortgage
Your solicitor finalises the legal work, funds are released, and the mortgage completes, usually alongside the purchase or remortgage date.
This is one of the most common questions people ask, and there's no way to guarantee the right answer. Mortgage rates move in response to inflation, Bank of England base rate decisions, and lender competition, and forecasts change often.
Rather than trying to time the market, many people choose to lock in a rate several months ahead of their current deal ending, while keeping the option to switch if a better deal appears before it starts. An advisor can talk you through what's currently available and how it fits your plans.
We connect you with specialist mortgage advisors who compare rates from a wide range of lenders to find options that suit your deposit, credit history, and plans.
Because your home is used as security for a mortgage, it's worth comparing properly before committing to a deal. Your home may be repossessed if you do not keep up repayments on your mortgage or any other debt secured on it.
What you get
Common questions
There's no single 'good' rate that applies to everyone. What counts as competitive depends on your deposit size, credit history, and the mortgage type you choose. Borrowers with larger deposits and strong credit generally access the most competitive pricing, while smaller deposits or credit issues usually mean higher rates. Speak to an advisor to find out what you're likely to qualify for based on your circumstances.
Mortgage rates move with market expectations and Bank of England decisions, so nobody can guarantee future movements. Speak to an advisor for an up-to-date view of the market and what it might mean for your options.
The base rate is the interest rate the Bank of England charges when lending to other banks. It's reviewed roughly every six weeks by the Monetary Policy Committee and directly affects tracker mortgages, while influencing where lenders set their fixed rates. Because it can change at each review, check the current rate on the Bank of England's website or speak to an advisor rather than relying on a figure that may already be out of date.
The most competitive rates are typically reserved for borrowers with the lowest loan-to-value, usually 60% or below (a 40% deposit). Each extra 5% you put down generally unlocks a better rate tier. You can still get a mortgage with a 5% deposit, but expect to pay more for the extra risk the lender is taking on.
It depends on your plans and appetite for risk. A 2-year fix gives you the flexibility to review your options sooner if rates fall or your circumstances change. A 5-year fix offers longer payment certainty but usually comes with a bigger early repayment charge if you need to exit early. An advisor can compare both options against current pricing to help you decide.
Yes, though your options will be more limited and rates will typically be higher. Specialist lenders consider applicants with past credit issues, including missed payments and defaults. How recent the issue was, whether it's since been resolved, and your overall financial stability all play a part. Speaking to a specialist advisor helps you find lenders most likely to accept your application.
You'll move to TMW's Standard Variable Rate unless you switch to a new deal. TMW contacts existing customers before their deal ends to discuss switching options, and it's worth speaking to an advisor in good time to compare alternatives.
A straightforward application typically takes 2-4 weeks from application to offer. More complex cases, such as self-employment, non-standard properties, or credit issues, can take longer. From offer to completion usually adds another 4-8 weeks for purchases, and often less for remortgages.
It isn't a requirement, but a broker can compare a wide range of lenders on your behalf and handle much of the paperwork, which is particularly useful if you're self-employed, have a complex credit history, or are managing a chain.
The interest rate is the basic cost of borrowing. The Annual Percentage Rate (APR) includes the interest rate plus mandatory fees, giving a more complete picture of the cost. When comparing 10 year loans, it's best to compare APR figures rather than headline interest rates alone, since APR gives the fuller picture.
Yes, but you'll typically pay an early repayment charge if you're still within your fixed or tracker deal period. These charges are usually 1-5% of your outstanding balance. Sometimes the savings from a better rate outweigh the charge, especially if you're close to your current deal ending.
Most lenders offer around 4 to 4.5 times your annual income, though some go higher for certain borrowers. Your actual borrowing limit also depends on your outgoings, existing debts, and whether you pass the lender's affordability stress test.
Green mortgages offer better rates or cashback for energy-efficient homes, typically those with an EPC rating of A or B. Several lenders offer green incentives, so if you're buying a new-build or a recently improved property, it's worth checking whether you qualify.
Tracker mortgages carry interest rate risk. If the Bank of England raises rates, your payments increase. The main advantage is flexibility, since many trackers have no early repayment charge, letting you switch penalty-free. Whether a tracker suits you depends on your appetite for risk and outlook on interest rates.
Most lenders set a maximum age of between 70 and 85 at the end of the mortgage term. If you're 55 and want a 25-year mortgage, that would take you to 80, within most lenders' limits. Specialist later-life lenders may accept higher ages, and your income in retirement will be assessed for affordability.
What our clients say
Shortly after I spoke with Anna, she was also very helpful and made it effortless and a nice experience.
Had a really good experience regarding arranging a secured loan. They introduced me to a great advisor. Thanks for the help.
For once a loan transaction without stress and complications. Very impressed and highly recommended.
Thrilled to share my exceptional experience with Money Saving Advisors. The website made it incredibly simple and easy to connect with an advisor. They helped me find the best deal on my remortgage and secured a very competitive interest rate!
Great advice and money saved on mortgage.
I have previously declined a loan of the value I needed from various brokers, but this website found me a reputable broker with surprisingly decent rates.
Mortgages
Compare mortgage rates from a wide range of lenders. Our expert advisors are here to help you find the right deal.
