Compare the best mortgage rates

A mortgage comparison service or qualified mortgage broker will help you compare the best mortgage rates. However, whilst comparing mortgage interest rates will help you find the best lenders, there are also things you can do to improve your chances of securing the best deals.

The following information explains how mortgage interest rates work, which mortgages have the lowest rates and how our mortgage comparison top tips can help find the best mortgage for you.

Updated 4th January 2023

Mortgage comparison table

The following mortgage comparison table shows the current leading mortgage rates for the UK

Lender Product Rate APRC Max LTV More info
Nationwide 2 year fixed 5.25% 6.9% 60% See more
Nationwide 5 year fixed 4.79% 6.0% 60% See more
First Direct 10 year fixed 5.35% 5.9% 75% See more
Newcastle BS Discounted rate 3.29% 4.8% 80% See more
Nationwide First time buyer 2 yr fixed 5.74% 6.6% 90% See more

Correct as at 4th January 2023, source - please check house buyer vs remortgage interest rates.

Mortgage comparison top tips

Getting the best mortgage rate isn’t just about the lender. There are also things you can do to boost your chances of qualifying for the most competitive rates, which is where our mortgage comparison top tips can help:

  • Improve your credit score; the higher your credit rating the more chance you have of being approved
  • Increase your deposit – the lower your loan to value ratio (LTV) the better the mortgage rates will be
  • Choose the right type of mortgage for your needs – interest only vs repayment / variable vs fixed / standard vs later life mortgages
  • Shop around and compare mortgages – don’t just rely on your current lender, bank or building society
  • Get advice from a qualified mortgage broker – companies like London & Country offer this service for free

What are mortgage interest rates?

When you get a mortgage, the amount you repay consists of the original loan plus interest accrued. Your mortgage interest rate will dictate how much you pay each month and the total cost of your loan. Therefore, securing the best mortgage rates could save you thousands of pounds.

How are mortgage interest rates set?

Mortgage interest rates are set according to several factors. Firstly, there’s the cost to the lender based on how their mortgages are funded, their competitors and the Bank of England base rate. The individual mortgage rate you’re then offered will depend on the mortgage type, your LTV and credit history.

Which mortgages have the lowest interest rates?

Mortgages with the lowest interest rates tend to be variable discount and tracker mortgages. Fixed mortgage interest rates are typically higher as you are paying for the added security of knowing your interest rate will remain the same for a specified period.

Also fixed mortgage rates over longer period are typically more expensive as the lender is facing a greater risk. Afterall it’s easier to predict what will happen in the next 1 to 2 years compared to the next 5.

What is APRC?

APRC or annual percentage rate of change helps you compare mortgage costs over the full term, not just the discounted period. Combining your introductory mortgage rate, fees charged and the interest rate after your initial period, APRC helps you compare mortgages on a like for like basis.

For example, if you were comparing the following two mortgage deals

  • one with a low initial interest rate but higher arrangement fees
  • the other with a higher interest rate but no arrangement fees

APRC would help you understand which is the better deal over the lifetime of the mortgage, as it includes all costs.

However as interesting as the APRC may be, most UK homeowners don’t stick with the same mortgage for the full term. Therefore, APRC shouldn’t be your main criteria when choosing the best mortgage rates.  

How do I get the best mortgage rates?

To get the best mortgage rates, compare leading UK lenders either yourself using an online mortgage comparison service or through a qualified mortgage broker. Some brokers like London & Country offer their services for free, so they can find the best mortgage rate for you at no extra cost.

Remember though, as well as finding the best rate, you also need to build in the associated fees. Choosing the best mortgage interest rate may seem like a good idea however if the fees are expensive, it may not be the best mortgage deal for you.

How do I compare mortgages?

To compare mortgages, consider your requirements. What type of mortgage do you want? How much do you want to borrow, over how long? Would flexibility to make over or under payments or take payment holidays help? Would you prefer the option to add any fees charged to your mortgage?

Also compare mortgages across the market, don’t just automatically go to your bank.

What should I do now?

If you would like a qualified broker to help you with your mortgage comparison, you could speak to London & Country as their advice is free.

Alternatively take a look at our guide for more information on the different types of mortgages available.

Compare mortgage rates

Frequently asked mortgage questions

What are today’s mortgage rates?

For more information on today’s mortgage rates, read London & Country’s latest best buy mortgage offers.

What are the current mortgage interest rates for the UK?

The current mortgage interest rates for the UK vary by lender. The type of mortgage you choose, the term and your financial status will also affect the mortgage rates available to you.

What is a good interest rate for a mortgage?

A good interest rate for a mortgage will still be competitive when you add in all the associated costs of getting a mortgage.

How can I get the lowest mortgage rate?

To get the lowest mortgage rate, it could help to get advice from a qualified mortgage broker. In addition, ensure your credit score is good, increase your deposit if possible and ensure you can demonstrate how the loan will be repaid.

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