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Best mortgage 2022: Find the cheapest UK mortgage deals

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Let Expert Reviews help you choose the best mortgage and discover some of the cheapest deals on offer

There are thousands of mortgage products available, and if you’re buying a new home or switching to a new deal the choice can feel overwhelming. With so many options to choose from, selecting the best mortgage isn’t something to be rushed.

In reality, though, your financial situation and needs will help to narrow your search and make it more manageable, especially if you understand your options. You could save hundreds, or even thousands, of pounds by taking out the cheapest deal versus the most expensive, so it’s essential to choose carefully.

It’s a good idea to speak to an independent mortgage broker who can search the market to find the best deal for you and help you through the application process. Brokers can be particularly useful if your options are limited, for example if you’ve recently become self-employed. You’ll also get extra protection if the mortgage turns out to be unsuitable.

Some of the top deals are only available through brokers, as you can see in the tables of products below, and some don’t charge you fees for their services (make sure you ask about any charges first).

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How to find the best mortgage for you

The first thing to bear in mind is that lenders will give you a lower rate to start with – usually for one to five years – before it jumps up to their higher standard variable rate (SVR). You should switch to a new deal at this point to avoid paying the more expensive SVR. This means you’re unlikely to have the same deal for the entire term of your mortgage.

If you want to switch your deal before the end of the initial period, there are usually hefty early repayment charges to pay so this is generally best avoided.

Don’t just look at the interest rate when comparing deals. Make sure you factor in any setup fees, such as arrangement and valuation fees, so you understand the total cost.

What types of mortgages are there?

Mortgages can be repaid on a repayment basis, where you will have paid off the mortgage and interest by the end of the term, or on an interest-only basis, where you pay just the interest each month.

With interest-only loans, you’ll need to set aside money in another product so that you can pay off the capital at the end of the term. As there’s a risk that you might not have enough money to pay off an interest-only mortgage, these deals are harder to get. A repayment mortgage is likely to be the best option for most people. It’s also possible to get a mixture of the two.

The mortgage term is usually 25 years when you first take one out but can be longer or shorter. The longer the term, the lower your monthly repayments will be, but the more interest you’ll end up paying overall.

There are also separate deals for buying a home – whether you’re a first-time buyer or moving to a new one, although some are specifically designed for first-time buyers – and remortgaging (switching to a new deal without moving home).

When you take out a mortgage deal you can choose from three main types according to the kind of interest rate you’ll have during the initial period:

  • Fixed-rate mortgages: These are the most popular type as the interest rate is guaranteed to stay the same during the initial period so you know how much your repayments will be. They are generally more expensive at the outset than variable-rate mortgages, which can go up or down. Fixed rates typically last for between two and 15 years, depending on the deal.
  • Discounted variable-rate mortgages: These generally give you a set discount on the lender’s standard variable rate for the period of the initial deal. Although they may be cheaper to start with than fixed rates, the interest rate could go up and increase your monthly payments. It could also go down, however, depending on what happens to the Bank of England base rate (although it was recently increased to 0.75% and is expected to rise further this year) and the market as a whole.
  • Tracker-rate mortgages: These usually track the Bank of England base rate by a set amount above it so the rate is guaranteed to change when the base rate changes.

There are also specialist mortgages for specific needs, such as if you’re buying a buy-to-let property or you’ve had credit problems in the past.

What’s the best way to compare deals?

If you’re relying on comparison sites to compare deals, bear in mind that they may not show every deal in the market or they may order them in different ways. It’s crucial to check multiple comparison sites to get the full picture.

If you’re remortgaging it’s also worth seeing what your existing lender can offer you first, as it may offer preferential rates to existing customers and the switch could be quicker and easier.

Before you go ahead and compare deals you need to ask yourself some key questions, and this is especially important if you’re not using a mortgage broker.

How much of the property’s value do you need to borrow?

You can usually borrow up to 95% of the property’s value (known as the loan-to-value or LTV), but you may be able to borrow more if you take out a mortgage that allows family members to act as guarantors.

The lower your LTV, the cheaper your mortgage will be, so it’s worth saving up as much of a deposit as possible if you’re a first-time buyer or reducing the amount you spend on a property if possible.

Do you want the certainty of a fixed rate?

Most people want a fixed rate as it gives them peace of mind that their monthly payments won’t go up. However, you won’t benefit from any falls in the Bank of England base rate, either. For first-time buyers on a budget, a fixed-rate mortgage is likely to be the best option.

How long do you want the initial deal to last?

A longer-term fixed rate is likely to have a higher interest rate than a shorter one but you won’t have to worry about switching to a new deal for longer and any costs involved each time you switch.

It’s probably best not to take out a longer-term deal if you’re planning to move during this period or you think your financial situation might change. Although most mortgages are portable (in other words, you can take them with you if you move), you’ll have more flexibility if you have the option of taking out a new deal with a different lender.

Do you want flexibility in how you repay your mortgage?

Some deals let you make overpayments or underpayments or take payment holidays. Many products now let you make overpayments up to a certain amount, such as 10% each year, without charging a fee. This can help you reduce your mortgage debt quicker and pay less interest overall.

You can see the cheapest fixed-rate mortgages for both buying a home and remortgaging below, but as rates change frequently you should check which are the best deals using comparison sites or by speaking to a mortgage broker before you proceed.


Disclaimer: A product or firm being well placed in this article based on past performance is no guide to their likely future performance. Our ranking does not amount to a recommendation.


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The best mortgage deals for buying a home

Top five cheapest two-year fixed rates – 90% LTV

For a £180,000 mortgage on a £200,000 property over 25 years.

Initial rate Initial monthly paymentSet-up feesTotal cost over the deal period
AIB2.25%¹£785.04£30£18,870.85
Santander2.29%£788.61£35£18,961.54
NatWest2.18%² ³£778.81£1,025£18,966.44
Royal Bank of Scotland2.18%² ³£757.69£1,025£18,966.44
Barclays2.3%£789.50£35£18,983.00

Notes: ¹Only available through brokers. ²Only available directly from the lender. ³£750 cashback.
Based on data from Comparethemarket.com. Correct as of 30 March 2022.


Top five cheapest five-year fixed rates – 60% LTV

For a £120,000 mortgage on a £200,000 property over 25 years.

Initial rate Initial monthly paymentSet-up feesTotal cost over the deal period
AIB2.2%¹ ²£520.39£30£30,753.42
NatWest1.98%² ³£507.46£1,025£31,122.46
Santander2.19%£519.80£35£31,222.89
MPowered2.21%²£520.98£30£31,288.97
Royal Bank of Scotland1.98%³ º£507.46£1,025£31,322.46

Notes: ¹£500 cashback. ²Only available through brokers. ³£350 cashback. º£150 cashback
Based on data from Comparethemarket.com. Correct as of 30 March 2022.


The best deals for remortgaging

Top five cheapest two-year fixed rates – 90% LTV

For a £180,000 mortgage on a £200,000 property over 20 years.

Initial rateInitial monthly paymentSet-up feesTotal cost over the deal period
Nationwide Building Society2.59%¹£961.74£0£22,589.69
AIB2.25%²£932.05£230£22,599.32
Clydesdale Bank2.4%²£945.08£40£22,721.93
Clydesdale Bank 2.46%²£950.32£40£22,847.72
Leek United Building Society2.7%£971.46£20£22,935.05

Notes: ¹£500 cashback. ²Only available through brokers.
Based on data from Comparethemarket.com. Correct as of 30 March 2022.


Top five cheapest five-year fixed rates – 60% LTV

For a £120,000 mortgage on a £200,000 property over 20 years.

Initial rate Initial monthly paymentSet-up feesTotal cost over the deal period
AIB 2.2%¹ ²£618.49£30£36,639.50
AIB2.2%¹ ²£618.49£230£36,839.50
Lloyds Bank1.86%³£599.14£999£36,947.14
MPowered2.21%²£619.07£30£37,174.00
Lloyds Bank 2.23%³£620.22£0£37,213.06

Notes: ¹£500 cashback. ²Only available through brokers. ³Only available directly from the lender.
Based on data from Comparethemarket.com. Correct as of 30 March 2022.

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