Getting a good mortgage rate can save you a great deal over the life of the loan, and there are clear ways to improve your chances. This guide explains how to get the best mortgage rate: the role of your deposit, your credit, comparing deals properly, choosing the right product, and using a broker.
Build a bigger deposit
One of the most effective ways to get a better rate is a larger deposit, since lower loan-to-value (LTV) bands attract lower rates, with the best deals usually at the lowest LTVs, as our guide to loan-to-value explains. So saving a bigger deposit, or reaching a lower LTV band, can meaningfully cut your rate. Even crossing one band, for example from 90% to 85%, can improve the deals available to you.
Improve your credit
A good credit history helps you qualify for lenders' best rates, while poor credit can limit you to higher-rate deals, as our guide to improving your chances explains. So checking and improving your credit before applying, by paying on time, reducing debts and correcting errors, can help you secure a better rate. Lenders reserve their sharpest deals for borrowers they see as lower risk, which good credit signals.
Compare the true cost, not just the rate
The headline rate is not the whole story; fees can make a low-rate deal more expensive overall, so compare the true cost including fees, using the APRC and the total cost over the deal period, as our guide to comparing mortgage deals explains. So a slightly higher rate with no fee can beat a lower rate with a large fee, especially on smaller loans. Comparing properly ensures you pick the genuinely cheapest deal.
Choose the right product
The type and length of deal affect your rate and suitability: fixed rates give certainty, variable rates may start lower but can change, and the fix length you choose involves a trade-off, as our guide to how long to fix relates. So choosing the product that suits your needs, not just the lowest rate, matters. The best rate is the one that fits your circumstances as well as your budget.
Use a broker
A broker can search the market for the best rate you qualify for, including deals not available directly, and match you to a lender likely to accept you, as our guide to using a broker explains. So a good broker can help you find a better rate than searching alone, particularly if your case is not straightforward. Their market knowledge and access can be especially valuable in securing a competitive deal.
Consider timing and your existing lender
Timing matters: starting your search early before a deal ends avoids slipping onto a high standard variable rate, and comparing a product transfer with your current lender against remortgaging elsewhere can reveal the best option, as our guide to product transfers explains. So acting in good time, and checking both staying and switching, helps you avoid overpaying and secure the best available rate when your deal ends.
An example of the saving
The difference a better rate makes can be large: even a fraction of a percentage point on a sizeable mortgage can save hundreds of pounds a year, and much more over the years, as our guide to how interest is calculated explains. So the effort of securing a better rate is well rewarded. This is why it pays to compare carefully and take the steps that improve the rate you are offered.
Fees versus rate in detail
A low rate with a high fee is not always cheaper than a higher rate with no fee, especially on smaller loans where the fee is a bigger share of the cost. So you should compare the total cost over the deal period, including fees, as our guide to mortgage fees explains. Working out the all-in cost, not just the rate, ensures you pick the genuinely cheapest deal for your loan size.
Reduce your other debts
Reducing other debts before applying can improve both your affordability and the rate you qualify for, since lenders view lower commitments and good credit favourably, as our guide to mortgage affordability relates. So clearing or lowering debts is a practical step toward a better deal. A tidy financial position, with manageable commitments, helps you access lenders' more competitive rates rather than being limited to higher-cost options.
Avoid unnecessary credit applications
In the run-up to a mortgage, avoid taking on new credit or making lots of credit applications, as these can affect your credit file and how lenders see you, as our guide to credit scores and mortgages explains. So a stable, well-managed credit position before applying helps. Being careful with credit in the months before a mortgage application supports both approval and access to the best rates available to you.
Consider flexibility, not just the rate
The cheapest rate is not always the best deal if you need flexibility, such as the ability to overpay, port, or leave without large penalties, as our guide to early repayment charges and how to avoid them explains. So weigh the features you need against the rate. A slightly higher rate with the flexibility you require may serve you better than the lowest rate with restrictive terms, depending on your plans.
Get advice if unsure
If you are unsure how to get the best rate for your circumstances, a broker can compare the market and the true costs for you, factoring in your needs and your chances with each lender, as our guide to whether to use a broker explains. So advice can help you secure a better deal than going it alone. For many borrowers, especially in complex cases, this expert help is well worth having.
Improving your approval chances helps your rate
The same things that improve your chances of approval, good credit, a healthy deposit, low debts and stable income, also help you access better rates, since lenders reserve their sharpest deals for lower-risk borrowers, as our guide to improving your chances explains. So working on your overall financial profile pays off twice. A strong application both wins approval and unlocks the more competitive rates that the strongest borrowers are offered.
Keep the bigger picture in mind
While chasing the lowest rate is sensible, keep the bigger picture in mind: the right product, term and flexibility for your circumstances matter alongside the rate, as does borrowing within your means, as our guide to how long to fix relates. So the best deal is the one that fits your life as well as your budget. Balancing a competitive rate with the features and security you need leads to the best overall outcome.
In short
To get the best mortgage rate, build a larger deposit to reach a lower LTV band, improve your credit, and compare the true cost including fees using the APRC, not just the headline rate. Choose a product that suits your needs, use a broker to search the market and match you to the right lender, and act in good time, comparing a product transfer against remortgaging. Together these steps can secure a noticeably better deal.
Where to get help and next steps
Read our guides to what loan-to-value means, comparing mortgages, and using a broker. This is general information, not mortgage or financial advice.