Getting the best mortgage deals

Finding the best mortgage deal is not just about getting the cheapest rate – it’s also about finding a product that suits your needs.

There are a few different things you should do to make sure you’re getting the best deal.

Cheapest mortgage deals

The obvious starting point is to look for the lowest interest rate. There are big differences between lenders and between different types of mortgage product, so it pays to compare. One of our advisers can talk you through what mortgage deals are available, while our rates tables will give you an idea of the best mortgage rates on the market.

But it’s not as simple as just finding the cheapest rate. You should also include the costs of mortgage fees in your calculations. In recent years, the average mortgage arrangement fee has increased considerably – nowadays you’re looking at paying around £1,500 in charges, having a significant impact on the cost of your mortgage.

It’s vital that when comparing mortgage quotes, you make sure you look at the total overall cost over the whole deal period.

If possible pay any fees upfront rather than adding them onto your mortgage as including them in the overall debt will mean you pay interest on them.

A mortgage to suit your needs

Although cost will probably be the biggest driving factor in deciding what the best mortgage deal is, there are other things you should consider as well.

One of the biggest decisions is which mortgage type you would like such as a fixed-or a variable-rate mortgage. With a fixed-rate you know for sure what your monthly repayments will be for a set period. So they are ideal for anyone who would struggle to afford rising repayments.

With variable-rate deals, however, you have the chance of cheaper repayments if interest rates fall, but also the risk of rate increases. Variable-rate deals are, in general, cheaper than fixed-rate deals at the moment. But with the Bank of England base rate sat at 0.5% they’re unlikely to get any cheaper – the question is when they’ll rise and by how much.

Other things you may want to think about are whether there are any particular product features you would like on your mortgage, including the ability to make overpayments or the option to take payment holidays. This will have an impact on the product range, and rates, that you ultimately will be able to choose from.

Take mortgage advice

Whatever kind of mortgage you’re looking for, one of our advisers would be happy to talk you through the options available to you.

You can speak to a Which? mortgage adviser by calling us on 0117 981 7787 – or request a call back. Our advisers look at every mortgage from every available lender, and because they’re paid a salary – not a sales commission – you can have confidence that you’ll receive truly impartial advice.