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Provide your details so Mojo Mortgages can find deals that are suited to you and your circumstances
Your Mojo expert will compare deals and recommend the best one for you
If you're ready to apply, your Mojo expert will help you secure your mortgage deal
YOUR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP WITH YOUR MORTGAGE REPAYMENTS.
The FCA does not regulate mortgages on commercial or investment buy-to-let properties.
Want to know how much a mortgage lender may be willing to lend you? To find out what you could borrow, you need to know your:
Earnings before tax
Earnings before tax for any joint applicants
Mortgage affordability calculators can be helpful at the start of your home buying journey – they allow you to focus your search on properties within your budget.
A first-time buyer is someone who has never owned a property anywhere in the world. If you have owned a property, even if you didn't use a mortgage or inherited it, you normally won't be classed as a first-time buyer by mortgage lenders.
For joint mortgage applications, all applicants must meet this definition for the purchase to be considered a first-time buyer application.
Although certain first-time buyer mortgage deals exist, the majority of mortgages are available to all buyers. Stamp duty relief and certain home ownership schemes are only available to first-time buyers that meet the above criteria though.
A remortgage is when you switch mortgage provider, usually to take advantage of a more competitive interest rate. This is used to repay the mortgage on a property that you already own, rather than to buy a new one.
Most people remortgage when they are approaching the end of their current deal – you can compare mortgage deals and usually lock in a new rate around six months before your existing deal term ends.
If you're on your lender's standard variable rate (SVR), you can remortgage at any time without early repayment fees.
When you move house, you can often take your existing mortgage with you – this is known as porting your mortgage. It can be an easier option, but won't always be the cheapest, so make sure to look at the best mortgage rates that other lenders have available too.
Most, but not all mortgages are portable, so you may have no choice but to take out a mortgage with another lender if you're keen to move. Look out for early repayment charges (ERCs) and exit fees if you're still in a fixed-rate or introductory rate period.
A buy-to-let mortgage is to buy rental properties for investment purposes, so is typically only used by landlords.
With buy-to-let mortgages, lenders base your borrowing on the potential rental income (or rental yield) of the property, rather than your personal income. Usually they will expect this to cover 125-145% of the monthly mortgage repayments.
You'll also need a higher deposit compared to a residential mortgage. Most lenders ask for at least 25% of the property value, although it can vary between 20-40%.
The table below shows some of our best fixed-rate mortgage deals, based on the initial rate available and different loan-to-value (LTV) ratios (LTV is the amount you borrow compared to the value of the property). The initial rate is what you pay during the introductory deal period (for a two-year fixed-rate mortgage, the introductory period is two years).
We have also included the Annual Percentage Rate of Change (APRC) in brackets after the initial rate for each deal. The APRC takes fees and the lender's standard variable rate (SVR) – which you're moved onto after the introductory period – into account, so it can be useful when comparing the overall cost of different deals.
But bear in mind that many people choose to remortgage onto another deal at the end of their introductory deal, rather than moving onto the SVR.
|LTV||2-year fixed||5-year fixed|
|90||Skipton BS - 5.7% (6.8% APRC)||Skipton BS - 5.28% (6.5% APRC)|
|80||NatWest - 5.62% (7.9% APRC)||NatWest - 5.02% (7% APRC)|
|70||Barclays Bank - 5.39% (8.4% APRC)||Virgin Money - 4.82% (7.6% APRC)|
|60||Barclays Bank - 5.33% (8.4% APRC)||Virgin Money - 4.82% (7.6% APRC)|
Rates are provided by Mojo Mortgages and updated every 12 hours. THESE DEALS MAY NOT BE AVAILABLE AT THE POINT AT WHICH YOU ARE READY TO SUBMIT AN APPLICATION. Remember that you may not be eligible for all mortgage deals depending on your circumstances.
90% LTV 2 Year Fixed - Skipton BS - 5.7% Repayment mortgage of £252,000.00 over 25 years, representitive APRC 6.8%. Repayments: 26 months of £1,590.36 at 5.7% (fixed), then 274 months of £1,742.28 at 6.79% (variable). Total amount payable £516,086.28. Early repayment charges apply until 31-Dec-2025. Other fees may apply.
80% LTV 2 Year Fixed - NatWest - 5.62% Repayment mortgage of £224,000.00 over 25 years, representitive APRC 7.9%. Repayments: 27 months of £1,400.94 at 5.62% (fixed), then 273 months of £1,715.82 at 7.99% (variable). Total amount payable £506,244.24. Early repayment charges apply until 31-Jan-2026. Other fees may apply.
70% LTV 2 Year Fixed - Barclays Bank - 5.39% Repayment mortgage of £196,000.00 over 25 years, representitive APRC 8.4%. Repayments: 26 months of £1,196.23 at 5.39% (fixed), then 274 months of £1,589.17 at 8.74% (variable). Total amount payable £466,534.56. Early repayment charges apply until 31-Dec-2025. Other fees may apply.
60% LTV 2 Year Fixed - Barclays Bank - 5.33% Repayment mortgage of £168,000.00 over 25 years, representitive APRC 8.4%. Repayments: 26 months of £1,020.11 at 5.33% (fixed), then 274 months of £1,362.66 at 8.74% (variable). Total amount payable £399,891.70. Early repayment charges apply until 31-Dec-2025. Other fees may apply.
90% LTV 5 Year Fixed - Skipton BS - 5.28% Repayment mortgage of £252,000.00 over 25 years, representitive APRC 6.5%. Repayments: 62 months of £1,526.68 at 5.28% (fixed), then 238 months of £1,722.50 at 6.79% (variable). Total amount payable £504,609.16. Early repayment charges apply until 31-Dec-2028. Other fees may apply.
80% LTV 5 Year Fixed - NatWest - 5.02% Repayment mortgage of £224,000.00 over 25 years, representitive APRC 7%. Repayments: 63 months of £1,320.85 at 5.02% (fixed), then 237 months of £1,666.37 at 7.99% (variable). Total amount payable £478,143.24. Early repayment charges apply until 31-Jan-2029. Other fees may apply.
70% LTV 5 Year Fixed - Virgin Money - 4.82% Repayment mortgage of £196,000.00 over 25 years, representitive APRC 7.6%. Repayments: 62 months of £1,132.77 at 4.82% (fixed), then 238 months of £1,619.67 at 9.49% (variable). Total amount payable £455,713.20. Early repayment charges apply until 01-Dec-2028. Other fees may apply.
60% LTV 5 Year Fixed - Virgin Money - 4.82% Repayment mortgage of £168,000.00 over 25 years, representitive APRC 7.6%. Repayments: 62 months of £972.01 at 4.82% (fixed), then 238 months of £1,389.81 at 9.49% (variable). Total amount payable £391,039.40. Early repayment charges apply until 01-Dec-2028. Other fees may apply.
When you borrow a mortgage loan, you pay it back with interest (extra money on top of the amount you borrowed), as this is how the lender makes money.
The interest rates available to you will depend on your financial circumstances, market competition and the Bank of England base rate.
How the base rate impacts your mortgage repayments depends on the type of mortgage you have (whether it's fixed or variable).
If you're looking for the cheapest mortgage rate, you'll likely find them to be much higher now than they were a few years ago. This is due to economic factors and multiple increases in the Bank of England's base rate of interest.
However, there are still ways to increase your chances of securing a competitive rate:
Save as large a deposit as you can afford. Generally the lowest interest rate is achieved with the greatest deposit, as lower LTV mortgages are seen as less risky by lenders
Speak to a whole-of-market mortgage broker who can compare all of the best mortgage deals from across the market to see what's available to you
This table shows the current average mortgage rates in the UK. The market is extremely volatile at the moment, with rates changing frequently and deals disappearing with little notice. So it's more important than ever to seek advice from an expert mortgage broker, whether you're looking for a new mortgage or remortgage.
"There’s been a lot in the news over the past few months around mortgage rates changing and deals being pulled. However, there are plenty of deals available. So, if you need a mortgage, whether you’re a first-time buyer, home mover or need to remortgage, get in touch with an expert to discuss the options available to you."Aidan Darrall, Mortgage Expert at Mojo Mortgages
|LTV||Deal type and length||Current average rate|
|75% LTV||2 year fixed-rate||6.55%|
|75% LTV||5 year fixed-rate||6.25%|
|75% LTV||2 year variable rate||5.94%|
|N/A||Standard variable rate (SVR)||8.74%|
*Average rates from Mojo Mortgages - the above are the average mortgage rates today for various products across the market. These won't necessarily be available to you, and are not the only product types available.
In this turbulent market, it's difficult to forecast too far ahead. With inflation falling to just below 7% in August, some lenders have reduced rates on their mortgage products. But these reductions may be temporary so we might see further rises. This is largely because the Bank of England base rate is a key lever in addressing inflation, which is not yet close to the 2% target.
It's therefore possible that we'll see further base rate increases this year, and we may see a knock-on effect in the mortgage rates available. Although on 21 September, the Bank of England's Monetary Policy Committee chose to maintain the base rate at 5.25%. They will next meet to decide on base rate changes on 2 November.
Staying on top of current mortgage news is a good way to keep an eye on the market.
If you've had a mortgage for more than two years, your rates will likely increase when you remortgage in the current climate. This can be very stressful, but there are a couple of actions that may help you if you expect your current mortgage interest rate to rise:
Lock in a new rate early – you can lock in a new rate six months before your existing deal ends. This allows you to lock in a decent rate in a rapidly changing market without paying ERCs). If rates do happen to fall before your deal ends, you can always switch again before the new deal starts
Fixing your mortgage – If you're on a variable rate, fixing will keep your rate the same for a set period of time. This can be more expensive to begin with, but gives you certainty that you won't have to pay more for a set period
It's very difficult to predict how long mortgage rate volatility will last. We have seen some rate declines recently due to falling inflation, but these might be temporary. The fact that five-year fixed-rate deals are more affordable than two-year fixed-rate deals suggests that the market expects costs to stabilise within the next five years - but this is not guaranteed.
Rates may have declined slightly recently, but it's important to manage expectations. The 1-2% rates many recognise were unusual for the mortgage industry - so it's unlikely they'll return to this level any time soon.
Worrying that interest rates will fall after you've secured a mortgage is absolutely valid, however, especially in a climate where half a percentage point could make all the difference to your affordability.
If you're concerned about missing out on lower rates you could:
Opt for a shorter-term fixed-rate mortgage – so you're tied to that deal for less time and it's easier to switch mortgages when rates fall. You can also opt to pay ERCs to leave a deal early, but this may outweigh the value of switching
Consider a variable-rate mortgage – such as a tracker deal, that will benefit immediately from a fall in the base rate – but keep in mind that if rates rise, you'll end up with higher monthly repayments
All mortgages have either a fixed or variable interest rate.
With fixed-rate mortgages your interest rate won't change for a set period of time. There are various deal lengths available and you fix the rate for that amount of time, usually two, five or 10 years.
Knowing that your rate won’t increase within a specific time frame makes budgeting for your monthly repayments much easier. But you won't benefit if interest rates decrease whilst you're on a fixed-rate deal.
There are three different types of variable-rate mortgages:
Standard variable rate (SVR)
All variable interest rates are subject to change at any time. The introductory period of variable rate deals can be cheaper than a fixed-rate deal initially, but become more expensive if rates rise (or cheaper if rates fall).
This is the mortgage lender’s default rate and is usually higher than any of their other deals. You will automatically end up on this rate at the end of any other type of deal, so it’s often best to switch to a new deal as soon as your existing one ends.
Being on an SVR does offer more flexibility than other mortgage deals, given that you're not tied into the rate. Sometimes it can make sense to remain on an SVR for a short period of time if you're planning to move home soon.
With discount mortgages, you get a discount on the lender’s SVR for a specified period of time. Your rate will go up or down along with the SVR, but there's no guarantee that this will happen or by how much.
With tracker mortgages, during the initial deal period, your mortgage rate is a certain level above an external financial indicator, usually the Bank of England base rate. Your rate will follows its movements, matching how much it rises and falls by.
If you take out a mortgage on a repayment basis, you'll repay some of the capital (loan amount) you borrowed and some interest each month.
This means by the end of the mortgage term, you will have repaid the mortgage in full and will own your home outright.
The vast majority of residential mortgages are taken out on a repayment basis.
With interest-only mortgages, you only pay the interest on the mortgage each month – you don’t pay anything to clear the capital until the end of your mortgage term. At this point you need to repay the full loan that you originally borrowed.
For this reason, interest-only mortgages are usually only used to purchase buy-to-let properties. Landlords are usually happier than homeowners to sell off their property at the end of the mortgage term to repay the loan. Interest-only mortgages are available for residential properties in some very rare cases.
If you're buying a home for the first time, it can be really tricky to save up the money required. However, there are some schemes designed to help you get on the property ladder.
The mortgage guarantee scheme was launched in 2021 to encourage more lenders to offer 5% deposit mortgages. It ends in December 2023, but many lenders are likely to continue offering 95% mortgages.
As a first-time buyer in England and Northern Ireland, you get stamp duty tax relief on properties up to £425,000. On properties up to £625,000 you only pay tax on the amount above £425,000. In Scotland you get relief up to £175,000, and in Wales it's £225,000.
Our stamp duty calculator helps you work out how much you need to pay.
If you're struggling to save a deposit for your first home and are between the ages of 18-40, it might be worth opening a Lifetime ISA. The government will provide a 25% tax-free bonus on your savings, helping you save a deposit more quickly.
The First Homes Scheme provides designated properties for first-time buyers and key workers in England at 30-50% below market value. These properties are in limited locations, but availability is expected to increase in the coming years.
If you're struggling to save up a deposit for a mortgage on a home that meets your needs, shared ownership may be an option for you. You buy a 10-75% share of a home and pay rent to a housing association who own the rest.
With so much change in the mortgage market over the past year or so, it's more important than ever to get expert advice. Consult a broker who can compare mortgages from across the market to find the best deal for you.”Kellie Steed, Mortgage Content Writer
A mortgage is a loan from a bank, building society or other lender that you use to buy property. You normally repay the mortgage plus interest over a set period of time (the mortgage term), normally around 25-30 years.
This type of loan is secured on the property you’re buying, meaning that if you default on payments (fail to repay the loan), the lender could potentially repossess your home (take it back). This is usually a last resort, but it's important to understand that you won't own the property outright until the entire loan has been repaid.
You can use a property bought with a mortgage as soon as the purchase has been completed. Being able to continue doing so depends on you keeping up with the repayments each month.
When applying for a mortgage, it's important to get a competitive rate as this will determine how much you pay each month
An independent mortgage broker can compare mortgages across the whole market very quickly and help you find the deal that is most suited to your individual circumstances.
Important questions to consider when choosing a mortgage are:
How much will my monthly mortgage payments be?
What arrangement fees will I need to pay?
If I choose a variable-rate mortgage, what happens when interest rates rise?
Always factor in the fees as well as the interest rate when you're deciding which is the most affordable option overall. The easiest way to do this is to look at the total cost over the deal period.
The mortgage market is incredibly dynamic and it's a good idea to stay ahead of any major changes, whether you're buying your first home, or have had a mortgage for many years. Checking out the latest mortgage statistics and following mortgage market news will help you stay in the know.
The typical length of a mortgage in the UK is around 25-30 years, but the term can be shorter or longer, depending on your preference, income and age.
A longer term mortgage will allow you to keep your monthly costs lower, as it will spread out the repayments over a longer duration. But this also means that it takes you longer to repay the mortgage, and you’ll pay more interest overall as a result.
The LTV is the ratio between the value of your property and the amount you're borrowing. For example, if you take out £112,500 mortgage on a £150,000 property, the loan would be 75% LTV. You would therefore need a deposit of 25% (or £37,500).
All mortgages have a maximum LTV that it's possible to borrow, and typically, the higher the LTV (the more you borrow compared to the cost of the property), the higher interest rate you’ll pay.
First-time buyers tend to need to borrow a higher percentage of the property’s value than existing homeowners. This is because if you already have a home, you typically build up equity in the property as you repay the loan and when house prices rise. Equity can be used as a deposit when you remortgage or move home.
APRC stands for Annual Percentage Rate of Charge and is a way of comparing different mortgages. It takes the overall rate charged over the lifetime of the mortgage, including any fees, and gives you a baseline comparison rate.
Mortgages generally offer a lower interest rate for the first two to 10 years then revert to the lender’s standard variable rate (SVR). Every lender has their own SVR and this is typically (but not always) the most expensive rate available.
The APRC uses both of these interest rates to show the real cost over the whole term of the mortgage. This helps you to find out whether the deal with the lowest initial rate is really the cheapest overall.
As this assumes you’ll keep the same mortgage for the whole term, it’s not always a useful way to compare deals, however. Looking at the total cost over the deal period can be a better way to find the cheapest option, if you're planning to switch mortgages when each deal period ends.
To make the home buying process smoother, you should consider getting a mortgage in principle. This is often known as a decision in principle (DIP) or an agreement in principle (AIP) by lenders.
A mortgage agreement in principle is a theoretical mortgage offer, assuming you are able to meet the full criteria when you go through the full application process.
It's useful when looking at properties, as it gives the impression that you are a serious buyer. It's also a good indicator that you will be approved for a mortgage down the line, so long as the information you provide when you apply for it is as accurate as possible.
Most residential mortgages are only offered on a repayment basis, so if you're purchasing a home to live in, then you will most likely need to get a repayment mortgage.
This is because interest-only mortgages are much riskier, as you still owe the full loan amount at the end of the term. You need a repayment plan in place and if this doesn't work out, you'll need to sell the property at the end of the term.
However, if you're purchasing a buy-to-let property, interest-only mortgages are commonly available. Most landlords use interest-only mortgages, as it means the monthly mortgage repayments are lower, allowing them increased profit from the rent.
This can be used for property maintenance or saved towards repaying the full loan at the end of the mortgage term. Plus, landlords are usually happier to sell a investment property than residents are to sell their home at the end of the term, if necessary.
A repayment mortgage costs more each month than an interest-only mortgage. However, you will repay more interest overall with an interest-only mortgage, as you’re paying interest on the full capital amount for the entire mortgage term.
For example, if you had a mortgage of £200,000 at 5% over 20 years, the total interest would be around £116,876 if you took out the mortgage on a repayment basis. If you took it out on an interest-only basis, you would end up paying £200,146 in interest and would still owe £200,000 capital at the end.
When lenders calculate affordability, they generally take income, and outgoings into account, as they will want to be sure that you can afford the repayments each month.
A mortgage affordability calculator can give you an idea of what you may be able to afford, however, it's important to understand that your version of affordable may not always align with the lender's.
If you spend a large amount of your monthly income you may be seen as a riskier prospect by the lender. Especially if you are using your income to repay lots of other debts.
Before applying for a mortgage it’s a good idea to have a look at your finances and make sure you are budgeting sensibly. Identify areas where you could cut back or debts that you could repay before applying.
*Average savings based on Mojo Mortgages remortgage sales data compared to the average SVR in April 2023. Actual savings will depend on individual circumstances.
Uswitch is not a mortgage intermediary and makes introductions to Mojo Mortgages to provide mortgage solutions.
Uswitch and Mojo Mortgages are part of the same group of companies. Uswitch Limited is authorised and regulated by the Financial Conduct Authority (FCA) under firm reference number 312850. You can check this on the Financial Services Register by visiting the FCA website.
Uswitch Limited is registered in England and Wales (Company No 03612689) The Cooperage, 5 Copper Row, London SE1 2LH.
Mojo Mortgages is a trading style of Life's Great Limited which is registered in England and Wales (06246376). Mojo are authorised and regulated by the Financial Conduct Authority and are on the Financial Services Register (478215)
Mojo’s registered office is The Cooperage, 5 Copper Row, London, SE1 2LH, and head office is WeWork No. 1 Spinningfields, Quay Street, Manchester, M3 3JE. To contact Mojo by phone, please call 0333 123 0012.
Page last reviewed: 29 September 2023