How to Compare Mortgage Interest Rates in the United Kingdom

You can compare mortgage rates for the best deal.

Getting onto the property ladder in the United Kingdom has become far more difficult as the price of property increases beyond many people's financial reach. The face of finance has altered since the banking crisis, and banks are far more reluctant to lend money.

Compare Banks

Talking to your own bank is the first step. If you have good financial standing and a good credit history, your bank may offer you a better rate than you can obtain elsewhere. If another high street bank offers rates that are more competitive, you can apply there for a mortgage; you do not have to be an existing customer.

Compare Online

Some online websites offer comparisons among banks, building societies and mortgage lenders to show you which are the most competitive. Moneysupermarket and Confused are two websites that provide market comparisons in all financial matters.

Interest Rates

Interest rates fluctuate, and sometimes the most attractive initial interest rate may not be the best long-term option. Base rates depend on many financial variables, and there are many different types of mortgages. Tracker mortgages track the Bank of England base rate and remain at an agreed percentage above base rate for a fixed length of time. Other mortgages offer variable rates, in which case your payments could fluctuate monthly according to your own lender's interest rates. Interest rates on fixed-rate mortgages do not change for an agreed length of time. Compare terms and conditions as well as interest rates and financial benefits to determine the best mortgage for your situation in the short term and long term.

References

• Confused: homepage
• Moneysupermarket: homepage
• Mortgages UK: tracker