Where to find the best mortgage rates

There can be several reasons for needing a mortgage. Maybe you are about to buy a new property or move home. Is your existing fixed-rate coming to an end? Whatever your circumstances are there is one thing for sure and that is you will want to find the best mortgage rate for you!

How to get the best mortgage rate

To find a mortgage with the best rate you will need to search the whole mortgage market. This can be achieved in several ways however the most efficient and easiest way is to use a mortgage broker.

There is over 90 banks and building societies offering over 14,000 different mortgage deals. This means finding the leading mortgage deal and rate could feel almost impossible. In this guide, we will give you a few alternative options on how you can find the very top interest rates available.

How to get a mortgage with a great rate

Many people leave arranging a mortgage deal to the last minute. You may have found your dream home and are now panicking about how to find the right mortgages with a great interest rate! Your existing deal with your lender may be coming to an end and you may have left it to the last minute to sort out a new deal. Don’t panic! YesCanDo Money is a whole of a market free mortgage broker with access to the best mortgage rates.

Searching the internet for a low rate!

Like most people, the first place you may visit is our good friend Google. You might type in that you are looking for a good interest rate. You will then get a page of adverts from the different banks and building societies telling you they have the best rates, but how do you compare them all? I know what I will do you say, I will look at some comparison websites.

Will a comparison website get you the best deal?

You may use a website to compare mortgages and after spending ten minutes putting your life story into it, you press the button to see what is recommended. It won’t take too long before you realise that the lenders on the list are not ones you have heard of and that there are not many of them on the list. Remember there are over 90 different lenders in the UK. How many of these are you being shown to you in the comparison?

The reason you won’t know many of the suggested lenders and are unlikely to have seen them on the high street is simple. Most websites that compare mortgage deals only quote you a handful of different mortgage lenders, not all available to you! The initial rate list you are given may even seem great, but when compared to other rates, deals and incentives, they are not actually the best available deals.

So it’s back to the drawing board. How am I going to find the very best deal and interest rate? We have the answer for you below.

Use a mortgage broker to get you the best interest rate

As we touched on before; to get a leading rate you need to search over 90 different banks and building societies. We have learned that comparison websites only have agreements with a few different lenders and that you will need to search the whole mortgage market.

A whole market broker has access to every bank and building society and also over 14,000 different rates and deals. It is possible you have not heard of a mortgage broker however if not we will cover what they do shortly.

FACT – over 70% of the mortgages arranged in the UK are arranged by mortgage brokers

Over the last few years, lots of high street banks have been shutting branches which have led to the vast majority of mortgages being arranged by brokers. The banks and building societies pay the mortgage broker to arrange everything for them and the mutual customer.

Where do I find a mortgage broker?

We come back to our good friend Google!

It’s knowing what you need to type in so you get website results that’s best for you and not what’s top for all the companies with their sponsored adverts! So here we go… Type into Google

FREE independent mortgage broker

This will bring up all the brokers that will be able to help you. You may have noticed that we suggested you search for a FREE mortgage broker, well the fact below will explain this.

FACT – Although over 70% of mortgage brokers charge for their services, 30% do not charge for their services and are 100% FREE.

So now you can choose a broker that is going to search the whole market to get you the very top interest rate and they are not even going to charge you for the privilege! It doesn’t get any better does it! Or maybe it does!

What does a mortgage broker do?

So we have covered the fact that the mortgage broker will have your interest at heart and they will search the whole market to get you the very top interest rate. But did you know that’s only the start of the journey of what they will do for you? They will be talking weekly to your new lender, your solicitor and estate agent if you are purchasing a property. Below is a summary of what happens next and what your mortgage will be doing to keep everything running smoothly for you.

‣ Agreement in principle

When you have found the right deal the next step will be to get an agreement in principle. An agreement in principle means that you know and have proof that you have been accepted by that lender and it also secures how much you will be able to lend. Basically it means you are good for your money and can now start to relax a little.

‣ Arranging a survey

Remortgaging – If you are remortgaging then the new lender is likely to carry out a desktop valuation. This means that they will use an in house valuing system to confirm that they agree with the value of the property. The exception to this can be if you are applying for a high loan to value (LTV) on your property.

Purchasing – If you are purchasing a property then the lender is likely to carry out a basic valuation survey. A surveyor will visit the property and make sure you are not overpaying for the property. The surveyor will take 10 minutes to confirm the property is in reasonable repair. In our opinion, it might be worth considering paying for an upgrade on the survey and get a Homebuyers survey carried out.

‣ Homebuyers Survey

Most lenders will allow you to pay for an upgrade to the valuation survey and have a Homebuyers survey carried out instead. This survey is more comprehensive than a valuation survey. As well as letting you know that you are not paying too much for the property the surveyor will spend a couple of hours at the property to carry out an inspection. The surveyor will produce a 10-page report letting you know about the property and will highlight any problems they can see and of any repair that the property may need.

‣ Mortgage Offer

Once the survey is received back from the surveyor your application will then move on to the mortgage offer department. Your broker will be talking to your new lender’s underwriters and will make sure they have everything they need and that there are no outstanding documents. The broker will confirm that they are satisfied with the survey and that the mortgage can now progress onto the mortgage offer stage. This is a big milestone for you as it means everything is fully agreed.

Exchange of Contracts

This is only applicable if you are purchasing a property. Everyone that buys a home will be holding their breath in the weeks leading up to exchange of contracts. The reason for this is once you have exchanged contracts its a done deal! The sellers have to sell you the property! Your mortgage broker will be talking to the lender and your solicitor daily until exchange of contracts happens. You will then get the call that you are a new homeowner and you can pop the cork of celebratory champagne bottle!

On to Completion

If you are purchasing a property you will now proceed onto completion. You will have been given the date of completion just prior to exchanging contracts. The most common time for completion is 2-4 weeks from the exchange of contracts. On the day of completion, you will get a call from your solicitor or conveyancer to tell you that completion has happened and that you will be able to pick up your keys from the estate agents and move into your new home. Wooo!

So by now, you can see that a broker can be your good friend by taking a lot of the stress away from getting the best mortgage deals. Your need for a broker has come to an end! Or has it? The chances are that you have chosen a 2 year or 5 year fixed rate which will mean your now existing deal will come to an end. Before you go onto the standard variable rate (SVR), your new broker will be in contact to find a great new rate and the amazing deal will start all over again!

How to get get a great rate and avoid paying unnecessary charges

A great rate is one that financially reflects what you are wanting to achieve. People often focus solely on the interest rate and this is very dangerous. A low-interest rate will often come with a high arrangement fee therefore this also needs to be taken into consideration.

You need to have a financial plan over the coming years. Then and only then go and search for the leading interest deal that reflects and matches your financial requirements.

The cost of getting it wrong can far outweigh the saving made on getting a slightly lower interest rate. Getting a mortgage deal that gives you some flexibility is essential and the key. Get good financial advice.

Your money-saving journey continues…

Having to end your mortgage early due to not planning it correctly in the first place could be very costly. The average early repayment payment fines are around 3% of the outstanding loan. For example, the early redemption fee on a £150,000 loan could be as much as £3,000.

When it comes to remortgaging you are better starting your remortgage knowing or at least having a vague idea of what you may want to do in the next few years.

• Are you likely to want to move?
• Are you likely to need to raise funds to carry out home improvements?

YesCanDo Money takes pride in helping customers achieve the best rates and deals for their financial situation.

YesCanDo Money: a company built on 30 years of solid mortgage advice

YesCanDo Money was started over 30 years ago with the aim of helping people through the mortgage maze. To communicate with customers in a plain-speaking and easy to understand way and really, really look after their customers. To top it off one of the missions was to be able to do all this at no cost to their customers. The service was to be 100% FREE!

30 years on and YesCanDo Money are now one of the UK’s leading free mortgage brokers. They cover the whole of the UK and offer free online mortgage advice. Because communication is so important customers can talk to them via, Phone, email, FaceTime, Zoom and Whatsapp.

Not quite convinced that the YesCanDo hype is real? Then take a look at the hundreds of Facebook and Google reviews we have!

Frequently Asked Questions

Which banks give the best mortgage rate?

The bank that is offering the best interest rate today will be a completely different bank tomorrow. The 14,000 different deals being offered from the different mortgage lenders change daily. Therefore the top lender today could be offering a far worse rate tomorrow and therefore a completely different lender may be top for you.

What are today’s best mortgage rates?

The best interest rate today will be with offered one of the 90 plus different providers. There is a very strong chance that the lender will have changed by tomorrow. Speak to a mortgage adviser and they will be able to you information and proof of the very top rates for your particular loan to value.

Is it possible to get an interest only mortgage?

Interest-only mortgages are possible to get however there are very few lenders offering them. The lenders that do tend to have hard criteria, for example, you may need to earn over £70,000 and the maximum loan to value (LTV) would need to be under 50%. Also, they tend to be available on higher-priced properties.

What is the best mortgage to get?

The best mortgage to get will really depend on your very own circumstances. This is the reason that there are so many different lenders and mortgage deals available. Get good financial advice. The product and rate you need should reflect the advice you have been given. If you are likely to move in the next 2 years you will need a portable product. If you are wanting to pay lump sums off you will need a product that allows this without you being fined. The mortgage to aim for is one that suits what you are wanting to achieve over the forthcoming years. Get sound financial advice from your local broker.

I have heard that mortgage lenders dislike betting

This is true. Mortgage lenders do not like gambling of any sort. When you apply for a mortgage the mortgage lender will want to see your latest 3 months bank statements and any online betting will show on these. Therefore is you are about to buy a house now might be a good time to stop those football bets!

What is a standard variable rate?

Also known as an SVR, the variable rate is 100% something that everyone should avoid! After your initial rate ends, each lender has its own variable interest rate that you will revert to and the end of your fixed rate. It usually increases your monthly payment by a very large amount and is to be avoided at all cost!

Is it important to have a good credit score?

It is important however please do not worry too much on this. If you are on the electoral roll where you live and you are up to date with all your payments you should be fine. If you want to make certain that your credit score is good then you can simply

When can I re-mortgage?

You can remortgage as long as you are not tied into your existing rate or deal. Remortgaging too early will lead to you having to pay an early repayment charge. The early repayment charge could be several thousand pounds so get your broker to check this out for you first.

Who are the FCA?

All brokers registered in England are authorised and regulated by the Financial Conduct Authority FCA.

This is for your protection and to guarantee that the service and advice level is sound.

“Financial markets need to be honest, fair and effective so that consumers get a fair deal. We aim to make markets work well – for individuals, for business, large and small, and for the economy as a whole. We do this by regulating the conduct of more than 59,000 businesses. We are also the prudential regulator for more than 18,000 of these businesses.” –  Financial Conduct Authority FCA

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