Read through our expert advice and find the best mortgage rates today.
Best Mortgage Rates & Deals in 2023
Owning a home is the ultimate goal for most people, representing a significant milestone in their lives. However, this exciting achievement is not always an easy feat.
Mortgages are complex. If you naively agree to the wrong type of mortgage for your circumstances and finances, you could be left thousands of pounds out of pocket. As the UK economy slows and interest rates rise, finding a mortgage with a great interest rate is a truly daunting experience.
Being armed with our expert knowledge and experience will leave you in good stead to find the best mortgage rates available. We want to help you make informed decisions.
In this article, we’ll overview the best mortgage rates in 2023 available in the UK.
|1. The Cumberland — 5-year fixed deal||★★★★★||Click Here|
|2. Nationwide — 10-year fixed deal||★★★★★||Click Here|
|3. The Family Building Society — 2 years offset mortgage||★★★★★||Click Here|
|4. Furness Building Society — 2-year discounted variable||★★★★★||Click Here|
|5. Skipton Building Society — 2-year tracker||★★★★★||Click Here|
|6. Halifax — 5-year fixed buy-to-let purchase||★★★★★||Click Here|
|7. Halifax — 2-year fixed-rate with green incentives||★★★★★||Click Here|
|8. Santander — 2-year tracker||★★★★★||Click Here|
|9. Virgin Money — 10-year fixed||★★★★★||Click Here|
|10. Virgin Money — 10-year fixed interest only||★★★★★||Click Here|
What is a Mortgage?
A mortgage is a legal agreement to borrow money from a bank to buy a property. You can loan money to purchase your own home, land or other type of property.
With the average property in the UK valued at £289,818, not many people can afford to buy a home outright.
That is where a bank steps in. If you have a good credit history and a sufficient deposit, mortgage lenders, such as banks, may lend you the rest of the money.
However, when paying interest rates and mortgage payments, ensure the current deal offered is affordable for your finances.
What is the Mortgage Market?
The mortgage market is increasingly unpredictable so it is important to find the right mortgage deal.
With a rising base rate reaching 5.25% as of the summer of 2023, the consumer has experienced a full 5% rise in under 3 years.
Many homeowners are rushing to remortgage ahead of further interest rate hikes, but where do you start?
Mortgage costs vary from lender to lender, with factors such as an existing mortgage affecting your eligibility.
And with interest rates rising each quarter, we are here to help you make that right decision.
What is an Interest Rate?
The interest rate is the percentage of interest charged to your mortgage loan, informing you how high the cost of borrowing is. A lower interest rate means that you pay less money back to the lender.
Whilst homeowners enjoyed low-interest rate options of around 2-3% for several years, rises over the last 2 years have resulted in rates above 6%.
The mortgage rate you are offered by the lender will differ in line with your circumstances, providing alternative interest rate options and monthly payments.
You must pay your monthly payments on time, however, or face your property getting repossessed. An initial rate may be offered by your mortgage lender as an incentive.
Who is a Lender?
A mortgage lender is typically a bank, a building society or another type of financial institution. The lender will loan you the money you need to purchase your property.
A mortgage lender should not be confused with a mortgage broker, however. A mortgage broker will find you a mortgage lender.
What is a Credit History?
Your credit history will impact the interest rates offered. Your credit history is a report of your repayments of debts. So, if you have a responsible history of repaying debts, the best mortgage rates could be offered as your mortgage options.
Poor credit history will lead to higher interest rates, resulting in more cash being paid back to the lender over time. This is because lenders will view you as a risk and someone who is irresponsible when repaying debts.
Some lenders may not even offer you a mortgage with a poor credit record, even if you have a deposit.
If you are thinking about applying for a mortgage in the future, start to build your credit now.
Never miss a payment for any bill again, aiming to clear all excess debt owed. Apply for credit cards to build credit and start to improve your credit rating today.
How Do Mortgages Work?
A lender grants you a loan to buy a property. You will pay the lender instalments over a period of many years until the entire loan has been paid back.
A typical loan term for a mortgage is 25 years, although this will vary depending on what you want and what the lender is willing to offer.
When applying for mortgage deals, your lender will assess your Loan to Value, or (LTV). This is the percentage of the property’s value that is covered by the mortgage loan. The result of your LTV assessment will determine the interest rates the lender will offer.
What is an LTV?
The Loan to Value percentage can affect your mortgage and the offers presented.
LTV is calculated by dividing the loan amount you require by the property value, multiply by 100 to achieve a percentage.
For example, you want to buy a property worth £200,000 and you have a deposit of £20,000, requiring a mortgage of £180,000. Your lender will divide £180,000 by £200,000, multiplying by 100. As a result, your LTV will total 90%.
Depending on your LTV and general affordability and credit scoring checks, your lender may present different mortgage rates and mortgage types to you.
However, other debts will also be calculated when finding the best deal for your circumstances.
You will then be presented with different mortgage rates that you can consider, along with different mortgage types. Generally, it is easier to secure a mortgage with a great rate if you have saved for a bigger deposit.
What are the Different Types of Mortgages?
There are different mortgages that can offer different benefits to your finances. Do you know what type of mortgage you want to apply for?
The most common type of mortgage is a fixed-rate mortgage. In fact, half of British homeowners are choosing to fix their mortgage for 2 years.
You can fix the interest rate and access predictable monthly repayments across a set fixed rate period such as 2, 3, or 5 years fixed rates. Some lenders may offer a 10-year fixed-rate deal.
You cannot switch to a new deal when you are fixed in a fixed-rate mortgage deal, however. If you sell your property when locked in a fixed rate deal during your fixed rate period, a substantial early repayment fee may be required to pay to the lender.
It is essential to remember that once your fixed rate period ends, your mortgage will switch automatically to the lender’s standard variable rate (SVR). Although, you can beat the SVR as long as you are savvy and switch in time.
Lender’s standard variable rate
This is typically the lender’s standard variable rate (SVR), defaulting your mortgage to one of their variable rate deals.
To prevent your mortgage from defaulting to the lender’s standard variable rate (SVR), choose your new mortgage deal as soon as your fixed rate term is ending. Ensure you can predict your monthly payments.
A variable rate deal is not fixed and your loan repayments may change at any time.
This rate is typically influenced by the Bank of England base rate, which is currently rising every quarter. Although, your lender can choose their own variable rate which impacts repayments for variable-rate mortgages.
A benefit of a variable rate deal, however, is that you are not tied into the deal with the lender.
You can choose to change to a fixed deal if the Bank of England base rates rise too high and you want to achieve predictability. There is usually no fee when leaving variable-rate mortgages.
Another type of mortgage option is a tracker mortgage. Tracker mortgages are a type of variable mortgage deal, although the mortgage interest rate tracks the Bank of England’s base rate.
The lender cannot choose their own rate like they can with a variable mortgage rate.
An interest-only mortgage offers you the chance to make lower mortgage repayments as you are only paying the interest owed to the lender.
Your monthly repayments will not include any amount that will decrease the amount of money you owe in total.
The benefit of an interest-only mortgage is that you can pay lower amounts if you are facing financial difficulties.
However, you will not decrease the amount borrowed and will be vulnerable to negative equity.
If you want to buy a property to rent out, you will need a buy-to-let property mortgage.
Lenders generally prohibit renting out a property to a third party under standard homeowner mortgage deals. If you want to rent out an existing mortgaged property, you will need to convert a residential mortgage to a buy-to-let deal.
A buy-to-let mortgage may come with higher interest rates and higher fees. You may also discover that a higher deposit amount is required than for a general mortgage application, along with a lower LTV percentage.
An offset mortgage offsets the amount of money in your savings account against your outstanding mortgage balance.
This reduces the amount you pay in interest for as long as that amount is in your savings account. The money in your savings account is free for you to use, however.
At a Glance, Mortgage Pros and Cons
A mortgage can offer you many advantages, although there are some pitfalls to be aware of. When making such a big decision, ensure you know exactly what you are getting into.
Gain a clear overview of the best mortgage rates and their pros and cons by taking a look at this section. Absorb as much information as possible before taking the leap in your mortgage agreement.
✔️ Homeownership — the main reason anyone applies for a mortgage is to own their own home. You will gain the security of homeownership without needing to save the full purchase price of the property. You can create the home you want and know that your home is truly yours.
You may be comfortable every month to pay rent and not think about home ownership. However, you may find higher rental costs mean mortgage monthly repayment costs are more affordable.
Saving for a deposit can take time although it may be possible to secure a mortgage with no deposit in some circumstances.
✔️ Increased equity — More often than not, house prices rise. This positively impacts your property investment as your equity increases. UK house prices rose by 4.1% in the 12 months to January 2023, providing a comfortable return on your investment. Whilst property rises are not a certainty, property is a solid investment.
✔️ Simple application process — the mortgage application timeline can take up to 2 weeks. Although, you could obtain a mortgage in principle pre-approval within a few days.
If you have all the documentation ready to go, the process from start to finish will be quick. If you have a great credit history, you will have many mortgage options to choose from.
✔️ Predictable payments — when choosing a fixed-rate mortgage, your payments will be the same every month for the life of the mortgage deal. The rate of the mortgage is locked upfront. You could enjoy predictable mortgage payments for 2, 3 or even 5 years. This helps you to budget your finances accordingly without facing unpredictability.
When renting a property, your rental costs can rise when the landlord wants. A fixed-rate mortgage offers stability for your bank balance, giving you peace of mind.
❌️ Repossession risk — a significant drawback of taking out a mortgage is that the bank can repossess your property if you default on repayments. You will lose your home and your credit history will be severely damaged for many years to come.
Rising rates do mean that more homeowners are at risk of repossession.
However, repossession will not occur when you have only missed one or two repayments. Your credit score will be affected, but your mortgage lender will not launch into repossession mode. There are repossession rules a mortgage lender must follow.
As soon as you begin to face financial difficulty, talk to your lender. They may be able to grant you a payment holiday or switch to interest-only payments.
Repossession is the last option for the lender so work with them for your own benefit.
❌️ Interest rate — you will pay a substantial amount of interest to the lender over the duration of the mortgage loan.
For example, if you borrow £250,000 over 25 years at a 3% interest rate, you will pay £125,468 in interest. This is assuming no additional payments are made during the 25-year loan period.
As a result, you will pay over half of the amount originally borrowed just in interest to the lender.
❌️ Fluctuating property values — property values rise and fall depending on the economic climate. With a cost of living emergency and the current bank rate of 5.25% in the Summer of 2023, the economy is unpredictable and vulnerable.
Some experts are predicting that house prices could fall by around 25% over the next five years, reducing your property investment by a quarter. You could sell your home before a substantial fall in prices occurs, although you will need to pay an early repayment charge if you are locked in a fixed deal.
❌️ Negative equity — facing negative equity is a real risk when owning a property. Negative equity occurs when the value of your property decreases and you owe more money to the lender than the property is worth.
You will struggle to sell the property until prices begin to rise again. Negative equity may impact first-time buyers and those with lower mortgage deposits than established homeowners who have built equity over time.
Best Mortgages UK 2023
With all of the above factors, we've found the ten best mortgages for you.
1. The Cumberland — 5-year fixed deal — Great for low initial costs
- Initial interest rate for 5 years: 5.4%
- Arrangement fee: £0
- Valuation fee: £0
- Early repayment fee: £110
- LTV: up to 85%
- Incentives: £100 cashback if you switch to a Cumberland current account
Representative example — When borrowing £200,000 to buy a property worth £250,000, you will pay £1,516.83 each month for 5 years. Unless you switch to another deal in 5 years, the rate will rise to 8.24% for the remaining 20-year mortgage term. You will pay back £437,583.96 in total, £237,583.96 of this will be solely in interest to the lender.
This 5-year fixed mortgage deal from Cumberland offers a low 5.4% interest rate for a 5-year period and is one of our best mortgage deals. This is a generous offer from this lender, ensuring you can enjoy predictable repayments for several years.
A good mortgage deal for first-time buyers, there is zero arrangement fee and zero valuation fee, keeping your initial costs low. You can also pay up to 10% of the total mortgage balance each year so you can start reducing the amount borrowed.
As a first-time buyer, see if you are eligible for stamp duty relief or other first-home scheme discounts, reducing your overall cost when purchasing a home.
If you repay the entire mortgage loan before the 5-year deal has ceased, you will need to pay a fee of £110 along with an early repayment charge.
The early repayment charge totals 5% of the outstanding mortgage balance during the first year of the deal. This falls to 1% of the outstanding mortgage balance during the final year of the deal.
To secure this deal, your LTV score must not exceed 85%. Plus, if you switch your current account to Cumberland, you can receive a £100 incentive.
2. Nationwide — 10-year fixed deal — Great for the lowest interest rate
- Initial interest rate for 10 years: 5.09%
- Arrangement fee: £999 (can be added to the loan)
- Valuation fee: £0
- Early repayment charges apply
- LTV: up to 80%
- Incentives: £500 cashback in some circumstances
Representative example — When borrowing £200,000 to buy a property worth £250,000, you will pay £1,179.69 each month for 10 years. Unless you switch to another deal in 10 years, the rate will rise to a 7.99% variable rate for the remaining 15-year mortgage term. You will pay back £398,017.09 in total, £198,017.09 of this will be solely in interest to the lender.
Nationwide’s 10-year fixed-rate mortgage provides you with a low-interest rate of 5.09% for a solid 10-year period. It is one of our best mortgage deals with one of the lowest rates currently offered in today’s economic climate. It could be a good option for a secure decade ahead.
Whilst there is a £999 arrangement fee, you can add this amount to the mortgage loan, saving a substantial initial cost. A free basic valuation is included with the mortgage loan, saving you some extra cash.
To reduce the amount of loan you owe the lender, you can pay up to 10% of the outstanding balance each year.
However, if you want to pay off the entire loan early, early repayment charges are applicable. An early repayment charge of 7% of the outstanding balance applies for the first 4 years of the mortgage loan, falling to only 1.50% in the final year of the loan.
When you are approved for this loan, you could be in line for a £500 cashback incentive. This is subject to the terms and conditions, however, primarily that you are a first-time buyer. Your LTV must not surpass 80% to secure this deal.
3. The Family Building Society — 2 years offset mortgage — Great for a later life mortgage
- Initial interest rate for 2 years: 6.19%
- Arrangement fee: £999
- Application fee: £175
- Mortgage exit fee: £100
- Valuation fee: free for properties under £500,000
- Incentives: £500 cashback towards remortgage completion costs and £100 cashback for Offset Saver
Representative example — When lending £200,000 for a home valued at £250,000, you will pay £2,092.83 per month at a discounted rate for 2 years. However, this is a variable rate so repayment amounts could fluctuate.
Without switching deals or changing rates, you would pay the lender a total of £294,576.71. This amount includes £93,302.71 interest, an application fee of £175, a mortgage exit fee of £100, and a product fee of £999.
The offset mortgage from The Family Building Society is one of our best mortgage deals. It can be a great choice for securing a mortgage, or remortgage, in later life.
Many lenders perceive older lenders negatively and as a higher risk, although The Family Building Society value your life experience.
You could secure a mortgage with this lender up to the age of 90 years old, with earned income to age 70 accepted.
Whilst an arrangement fee of £999, an application fee of £175 and a mortgage exit fee of £100 are required, they are typically added to the mortgage loan.
However, to secure this mortgage loan, you must open an Offset Saver account with the lender.
Whatever amount of cash held in the Offset Saver account will be offset against the mortgages. This helps to lower your monthly payments or reduce the term of your mortgage.
For example, if you have borrowed £200,000 and you have £40,000 inside your Offset Saver account, you will only be charged interest for the remaining £160,000. The £40,000 savings is still yours and you can withdraw the money whenever you like.
But, for as long as the money is in the Offset Saver account, it will help reduce your monthly repayments.
4. Furness Building Society — 2-year discounted variable — Great for longer mortgage terms
- Initial interest rate for 2 years: 4.93%
- Arrangement fee: £999
- Mortgage exit fee: £120
- No early repayment fee
- Incentives: £250 cashback
Representative example — When lending £200,000 for a home valued at £250,000, you will pay £1,161 per month for 2 years with this prime example of discount mortgages. However, this is a variable-rate mortgage so repayment amounts could fluctuate.
Without switching deals or changing rates, you would pay the lender a total of £453,355.49 on a subsequent 6.75% rate. This amount includes £252,216.49 interest, a CHAPS fee of £20, a mortgage exit fee of £120, and a product fee of £999.
The 2-year discounted variable mortgage from the Furness Building Society offers a low competitive rate of 4.93% and is one of our best mortgage deals. This is a variable rate, however, and can change when the lender or the Bank of England base rate demands.
Up to 40 years can be obtained for the loan term if you want to spread the cost of your mortgage over a longer period.
An arrangement fee of £999 and a mortgage exit fee of £120 are payable, although they can usually be added to the loan amount. You will need an LTV not exceeding 80% to secure this mortgage rate, however.
This is a perfect choice if you are fully aware of the current economic climate and the factors that impact interest rates.
Property prices in the UK are predicted to continue to drop in 2023 and beyond so jumping into a fixed-rate deal may be unwise. You may be in a good position with a low variable rate to enjoy the benefits once interest rates begin to fall.
Fixing a deal will mean that you are stuck with that fixed rate for the duration of the mortgage terms.
5. Skipton Building Society — 2-year tracker — Great for remortgaging
- Initial interest rate for 2 years: 6.35%
- Arrangement fee: £995
- Free standard legal fee
- Free standard valuation
- No early repayment fee
Representative example — When borrowing £200,000 to buy a property worth £250,000, you will pay £1,331 each month for 2 years. However, this is a tracker deal that charges 1.1% on top of the Bank of England base rate so the rate may change.
Unless you switch to another deal in 2 years, the rate will rise to 6.24% for the remaining mortgage term. You will pay back £511,096.13 in total, £311,096.13 of this will be solely in interest to the lender.
The 2-year tracker deal from Skipton Building Society will result in monthly repayments of £1,331 and an initial rate of 6.35%.
Tracker mortgages track the base rate of the Bank of England so can and does fluctuate. However, tracker mortgages are perfect if you have financial knowledge and you know how to keep track of a tracker deal.
An arrangement fee of £995 is payable, although you will receive a free valuation and free standard legal fees.
As this is a tracker deal, there is no early repayment fee and you are not tied to this deal if a better rate comes along.
These are great mortgage deals for remortgaging where you already have a property and you are looking for a new deal from a new lender. It could also be a wise choice to avoid fixed deals whilst the economy is so unpredictable.
You must score an LVT of no more than 80% to secure this loan, with a minimum loan value of £5,000 applicable. The most you can borrow on this deal is £600,000.
6. Halifax — 5-year fixed buy-to-let purchase — Great for buy-to-lets
- Initial interest rate for 5 years: 6.11%
- Arrangement fee: £0
- Early repayment charge: 5%
Representative example — When borrowing £200,000 to buy a property worth £280,000, you will pay £1,302.08 each month for 5 years. Unless you switch to another deal in 5 years, the rate will rise to 8.6% for the remaining mortgage term.
Of the £1,302.08 monthly repayments you pay each month, £1,018.33 is paid to the lender in interest. Over the 5-year loan term, you will pay £78,124.80, of which £61,099.80 is paid in interest to the lender.
Halifax’s 5-year fixed mortgage for a buy-to-let property is perfect for new landlords. You will achieve a rate of 6.11% for the entire 5-year term and face zero product fees.
You will pay £1,302.80 per month in monthly repayments during the 5-year term.
This is a good mortgage if you are new to property investment and want a loan deal to get started on your buy-to-let journey.
A 5-year deal is also a solid loan period by which you can be sure of the monthly repayments when budgeting and costing your investments.
The vulnerable housing market and fluctuating costs are a typical downfall to watch out for. Therefore, it is wise to choose a fixed deal you can count on and budget for.
However, buy-to-let mortgages will require a lower LTV score than residential mortgages.
This deal states that you must achieve an LTV of less than 60%. This means that you can only borrow 60% of the property value, requiring a deposit totalling 40% of the property’s value.
7. Halifax — 2-year fixed-rate with green incentives — Great for eco-conscious homebuyers
- Initial interest rate for 2 years: 6.71%
- Arrangement fee: £0
- Early repayment charges: up to 2%
- Incentive: Green Living Award up to £1,000
Representative example — When lending £200,000 for a home valued at £250,000, you will pay £1377 in monthly mortgage repayments for 2 years. Without switching deals or changing rates after 2 years, your mortgage rate would fall into an 8.49% variable rate.
This 2-year fixed deal from Halifax offers an initial rate of 6.71% and monthly repayments of £1,377. There is no arrangement fee to pay, so you can keep more of your hard-earned cash.
If you want to exit the mortgage deal before the 2 years is completed, an early repayment charge is applicable.
The early repayment charges for such mortgage deals stand at 2% of the outstanding mortgage balance. This is a relatively low amount for fixed-rate mortgages.
The real selling point for these 2-year fixed-rate mortgages is the green incentives that are available.
With the Green Living Award, you could receive a cashback amount of up to £1,000 through your mortgage deal. The cashback award is granted when your property has experienced a green, eco-friendly improvement.
For example, installing an air source heat pump can result in a £1,000 cashback reward.
Other improvements such as installing a biomass pellet boiler, installing solar thermal heating, or providing secondary glazing can ensure a £500 cashback for you.
If you were planning to make such an upgrade anyway, why not get cashback for doing so?
An additional incentive is the £250 cashback amount offered if you purchase a home with a rating of A or B in its Energy Performance Certificate (EPC). This incentive encourages the purchase of energy-efficient homes.
See if you are eligible for green energy grants and eco improvements for your home.
8. Santander — 2-year tracker — Great for smaller deposits
- Initial interest rate for 2 years: 6.3%
- Arrangement fee: £0
- Free valuation
- No early repayment charge
- LTV: up to 90%
Representative example — When borrowing £200,000 to buy a property worth £250,000, you will pay £1,326 each month for 2 years. However, this is a tracker mortgage that charges 1.3% on top of the Bank of England base rate so the rate may change. Unless you switch to another deal in 2 years, the rate will rise to 8.25% for the remaining mortgage term.
The Santander 2-year tracker mortgage is a good choice if you have a smaller deposit.
Other lenders will require an LTV that does not exceed 80%, although this deal allows for an LTV of up to 90%. This means that you could secure this tracker loan with a deposit of £25,000 for a property worth £250,000, subject to status. You could get on the property ladder faster when a lower deposit is required.
With an initial rate of 6.3%, you will pay monthly mortgage payments of £1,326. There are no arrangement fees or valuation fees required, helping you to keep more of your money.
You can also enjoy a free valuation when accessing this 2-year tracker deal from Santander.
Additionally, as you are not fixed on the deal, there is zero early repayment charge if you decide to pay off the loan early.
You are also free to switch deals should a more favourable rate come along.
You will need to keep abreast of the Bank of England base rate, however, as this deal will track the increases and decreases of the base rate.
The lender will then add 1.3% on top of the Bank of England base rate.
However, being aware of the economic climate will mean that you should know how to budget for any rate rises.
9. Virgin Money — 10-year fixed — Great for longer fixed-rate terms
- Initial interest rate for 10 years: 6.48%
- Arrangement fee: £0
- Application fee: £0
- Mortgage exit fee: £99
- Early repayment charge: up to 8%
- Incentive: £300 cashback
Representative example — When borrowing £200,000 to buy a property worth £250,000, you will pay £1,341 each month for 10 years. Over 10 years, you will pay £160,920, of which £129,600 will be paid in interest to the lender.
£31,320 will be repaid off your balance in the 10-year period. Unless you switch to another deal in 10 years, the rate will rise to 9.24% for the remaining mortgage term.
The Virgin fixed rate 10-year mortgage deal offers you stability for a decade. You will pay 6.48% interest consistently across the 10-year period, knowing exactly how much you should budget.
There is zero application fee and zero arrangement fee to pay, saving you money on your initial costs. There is a £99 mortgage exit fee to consider when your deal ends, however.
You can pay up to 10% of your outstanding balance in additional payments per year, and you can claim £300 cashback subject to status.
If you decide to leave your fixed deal early, you will face an 8% early repayment charge during the first 2 years, declining each year.
In the final year of your deal, you will pay an early repayment charge of 1% of your outstanding balance.
A key feature of this mortgage is the ability to apply for a one-month payment holiday after you have paid 9 consecutive monthly payments. Use this benefit to take a well-earned holiday or simply gain some financial breathing space.
10. Virgin Money — 10-year fixed interest only — Great for interest-only
- Initial interest rate for 10 years: 5.18%
- Arrangement fee: £995
- Mortgage exit fee: £99
- Early repayment fee: up to 8%
- Incentive: £1,000 cashback
Representative example — When borrowing £175,000 to buy a property worth £250,000, you will pay £752 each month for 10 years. Over 10 years, you will pay £90,240, all of which is paid in interest to the lender.
£0 will be repaid off your balance in the 10-year period. Unless you switch to another deal in 10 years, the rate will rise to 9.24% for the remaining mortgage term.
The Virgin 10-year fixed interest-only mortgage is a good deal if you want to keep your costs low. You can pay a much lower monthly payment, fixed for 10 years.
However, as this is an interest-only mortgage, you will not pay any money off your outstanding balance.
The arrangement fee for this loan is £995, although you will secure a cashback of £1,000, effectively refunding the arrangement fee.
You can also take advantage of Virgin’s payment holiday offer and pay 10% off the outstanding balance each year.
Leading Mortgages for Homebuyers: The Verdict
Despite an uncertain economy, you can still secure a great mortgage deal when buying a property. Some of the best mortgage rates are still up for grabs, whether you are looking for a fixed-rate deal or a variable-rate mortgage.
However, the key to securing great mortgage deals is having an amazing credit score.
Ensure to never miss a payment and build your credit rating as much as possible, presenting an irresistible prospect to mortgage lenders. Build your credit rating today with a credit-building credit card.
Before applying for a mortgage today, ask yourself whether you can:
- Pay a big enough deposit towards the property.
- Ensure a strong credit rating to get the best deals.
- Commit to a fixed-rate deal that is difficult to leave.
- Be brave enough to enter a fluctuating variable or tracker mortgage.
- Be aware of the risks of repossession.
The most important thing is to enter into a mortgage with your eyes open, being fully aware of the benefits and risks of your investment.
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