Mortgage rates are not expected to fall further this year, but rising wages are likely to improve affordability for buyers as house prices stay flat.
Mortgages
Arranging a mortgage can feel complex.
How can you be sure you're getting the best mortgage rate for you, the right mortgage term and not paying too much in fees?
Explore our range of mortgage guides, get the lowdown on the latest mortgage news and find the best mortgage deal for you.
Explore mortgage options
How to get a mortgage
Get your finances ready
Compare mortgage rates
Decide the length of your mortgage term
Agree on a monthly payment you can afford
Arrange a mortgage agreement in principle
Secure a mortgage offer
Find out more in How to get a mortgage
How long does a mortgage offer last?
A mortgage offer usually last for 3-6 months, although this can vary according to the lender. If you don't buy a property within this time frame, you may need to ask for a mortgage offer extension.
Arrange a Mortgage in Principle
A Mortgage Agreement in Principle (otherwise known as an MIP or AIP) is a document stating how much you're able to borrow from a lender, provided the information you've supplied is accurate.
It’s the first step in the process of securing a mortgage.
First-time buyer mortgages
Work out how much you can borrow, arrange your mortgage in principle and secure your mortgage offer.
How to arrange a mortgage and secure the best rates available.
Mortgages for moving home
When you're moving to another property, you can port your existing mortgage, extend your current mortgage or remortgage completely.
Let's take a look in more detail at mortgages for moving home.
Mortgages for additional borrowing
Additional borrowing is when you borrow more on your existing mortgage.
You can borrow more from your existing lender, borrow from a different secondary lender or remortgage completely.
Let's take a look in more detail.
Buy-to-let mortgages
When you're purchasing a property for someone else to live in, the rules around mortgages and stamp duty change.
Buy-to-let mortgages often come with higher interest rates, and interest-only mortgages are a popular choice among landlords.
Let's look into how it all works.
Save money with Mojo Mortgages
Allow award-winning Mojo to show you the best rates available to you. A whole-of-market broker, Mojo work with over 70 lenders. And they won't charge you a penny for their services.
How it works
Fill in a few details
Tell Mojo about yourself and your situation so that they can get to know you, provide you with advice and ensure you’re eligible. It will take around 8 minutes.
Call with an expert
Book a call and speak to one of Mojo's in-house mortgage experts, who will compare thousands of deals from over 70 lenders to find one suited to you.
Get a mortgage
Leave it with Mojo; the paperwork, the application, the bank poking and protection insurance, they'll handle all the stress. And if you’re remortgaging they could save you a lot of money.
Average mortgage rates: 75% LTV
2-year fix - 5.05%
3-year fix - 4.93%
5-year fix - 4.65%
10-year fix - 5.18%
Current standard variable rate - 8.65%
Average mortgage rates: 60% LTV
2-year fix - 4.9%
3-year fix - 4.78%
5-year fix - 4.44%
10-year fix - 5.16%
Current standard variable rate - 8.65%
What are the different types of mortgages?
Repayment mortgages
Repayment mortgages are the most preferred type of mortgage option, that's where you're paying down your mortgage debt, alongside the interest charged on it. So at the end of the mortgage term, your home is yours.
Fixed rate mortgages
Fixed rate mortgages charge a certain amount of interest on the loan over a fixed term, usually 2 or 5 years, but sometimes up to 10 years.
Tracker mortgages
Tracker mortgages 'track' the Bank of England base rate, which is currently 5.25%. But they are usually set higher than the base rate. So you might pay the base rate plus 3% for example, making your mortgage interest rate 8.25%.
Standard variable rate mortgages
With standard variable rate mortgages, banks and building societies generally set their own variable rates. And they are often the most expensive mortgages available. Right now, the average standard variable rate mortgage range is between 7% - 8.75%.
Discounted mortgages
A discount mortgage is where the interest rate is pegged at a set amount below the lender’s standard variable rate (SVR). So if a lender's SVR is 6%, a discounted rate mortgage may sit at 1% below that.
Interest-only mortgages
Interest-only mortgages are mostly favoured by landlords and involve only paying the interest on the mortgage, rather than paying down the debt itself. So at the end of the term, you still owe the initial sum of money you first borrowed.
Read more: the types of mortgages available
How to get the best mortgage deals
There are two ways to go about finding the best mortgage deal available for you.
1: Approach banks and building societies
You can approach any lender to secure a mortgage.
If you want to get a mortgage as quickly as possible, going to your existing bank could be a good option.
Equally, if you have strong preferences for a particular lender or mortgage and are confident in the process, you may prefer to handle the mortgage application yourself.
You can approach as many lenders as you wish to find the best mortgage rate options for you, although it can be time-consuming to repeat the process with each lender.
2: Work with a mortgage broker
A mortgage broker will scour the whole market to find the best deals on your behalf.
They have access to deals that aren’t available on the high street as some lenders only work through brokers.
They can help to speed up the move and reduce the stress of the house buying process.
They can also help out if your credit rating isn’t where it ideally needs to be, if you have income/affordability issues, a less straightforward employment history or are buying a unique property.
The latest news on mortgages
Are interest rates going up or down? And what does this mean for mortgages? Get the latest.
The base rate has been cut for the first time in four years and now sits at 5%. Let's take a look at what this means for mortgages and the housing market.
27% of homeowners with a mortgage are on their lender’s standard variable rate. Could you be one of them?
First-time buyers accounted for more than half of all home loans in 2023 - and more than two-thirds teamed up to secure their own homes.
The first full week back after the new year has seen buyer interest jump out of the blocks faster than last year as mortgage rates drop. Get the latest with Richard Donnell.
95% mortgage guarantee scheme extended, 40,000 new homes to be built and Local Housing Allowance unfrozen to help renters on the lowest incomes.
Marathon mortgages, cutting pensions and raiding savings: how homeowners are coping as mortgage rates hover at their highest levels for 15 years.
42% of adults aged 18-39 who don’t own a home say they’ve given up on the idea of buying one in the next ten years, including 38% of those earning £60,000+.
As lenders withdraw some of their products, we take a look at what’s triggered the current turmoil in the mortgage market and what buyers and homeowners can do.
As the cost of borrowing increases, there are steps buyers and homeowners can take to help keep mortgage payments manageable.
The Bank of England’s latest increase adds a further £60-a-month to repayments for homeowners with a £200,000 variable mortgage.
Core inflation rose to a new 31-year high in May, suggesting the Bank of England will have to increase interest rates by more than previously expected.
A complete guide to buying a home
Buying a home is a big deal. From finding that perfect pad right through to exchanging contracts, we’re here to guide you every step of the way.
Mortgage guides: everything you need to know about mortgages
Whether you're a first-time buyer, home mover or landlord, our mortgage guides are here to help.
Want to renegotiate the price of the property you’re buying? Our guide has the ins and outs on how it could affect your mortgage offer.
Retirement interest-only mortgages are designed to help those who can't repay their mortgage in full when they retire. Here's how they work.
Legally, you're never too old to get a mortgage. As long as you've got the means to pay it, there'll be mortgage providers willing to lend it.
What’s the difference between an interest-only mortgage and a repayment one? Let’s take a look at the pros and cons of both.
Ready to start looking for a mortgage and not sure where to start? Let a mortgage broker guide you. They have access to deals that aren't always available on the high street.
About to apply for a mortgage and not sure how to prepare? Here's how to get lender-approval ready and boost your chances of success.
A healthy credit score can get you the best mortgage deal or the rental home you want. Here's what to do to improve yours.
What is the Bank Rate? Why do interest rates change? And what does it all mean for your mortgage repayments? Here’s everything you need to know about interest rates and how they affect you.
With Brits living and working longer than ever, more of us want to take out mortgages later in life.
Looking to get your first mortgage or lock in a new one? Let's take a look at the pros and cons of the different types of mortgages available.
Buying a home to rent out? Here's our easy-to-understand guide to rental mortgages and where to find the best buy-to-let mortgage rates.
If you're thinking of buying a house and applying for a mortgage, you'll need to know all about loan-to-value. Here's our guide with the lowdown.
Got questions?
We know getting a mortgage can seem pretty complicated. So we’ve listed the questions we hear all the time.
What's a mortgage?
A mortgage is a type of loan secured from a lender in order to buy a property or a piece of land.
A mortgage is typically paid back on a monthly basis over a number of years, the maximum being around 40 years in the UK. Today, the typical mortgage term is 32 years.
When you take out a mortgage, your property is used as collateral against the loan.
There are several different types of mortgages available and the interest you pay will vary depend on current mortgage rates, the type of mortgage you choose, the size of your deposit and the length of the mortgage term.
How long does a mortgage application take?
It can take from two to six weeks to get a mortgage approved. Most mortgage offers are then valid for six months.
So if you see a great deal out there and want to reserve it, it's worth speaking to the lender or a mortgage broker in advance.
At Mojo Mortgages, you'll just need to fill out a short questionnaire, which takes around 8 minutes, then arrange to speak with one of their expert mortgage brokers.
They'll scour the whole market on your behalf and can arrange a mortgage in principle and a mortgage offer for you.
What does a mortgage broker do?
An independent broker will help you find the best mortgage for you by looking at all of the different deals available.
They'll look into the real costs of different mortgages, by working out how much you'll pay back over the term of the mortgage in interest, and all of the fees involved.
Bear in mind that many of the cheapest mortgage rates can come with the highest set-up fees, so it's not always easy to work out which deal is the cheapest.
Brokers will also look into the likelihood of your application being accepted. That prevents you wasting time and money with mortgage applications you're unlikely to succeed with.
Find out more about what a mortgage broker does.
How do I go about remortgaging?
When you want to remortgage, it can be for a variety of reasons:
your current mortgage deal has ended and you want to secure a new deal with the best mortgage rate possible
you want to carry out some renovation work on your home and need to borrow money to do it
you may be experiencing a life change, such as changing jobs, moving in with your partner or starting a family
To remortgage, you can either approach your current lender or another lender, or you can ask a mortgage broker to scour the whole market for you to find the best deal for you.
What is a tracker mortgage?
Tracker mortgages 'track' the Bank of England base rate, which is currently 5.25%. But they are usually set higher than the base rate. So you might pay the base rate plus 3% for example, making your mortgage interest rate 8.25%.
Tracker mortgages, like many mortgages, usually have an introductory deal period that lasts between two, five or 10 years. After that, you'd move onto the mortgage provider's standard variable rate.
What is a lifetime mortgage?
A lifetime mortgage is a form of equity release. It enables you to take out a tax-free cash lump sum from the value of your home.
Lifetime mortgages are available to those over 55 and usually start at around 30% loan-to-value, meaning you must own at least 30% of your home already to apply for one.
Lifetime mortgages are usually repaid with the sale of the house when you pass away or enter into long-term care.