Best Mortgage Lenders UK
In this guide
When looking for a mortgage, you will obviously ask yourself one simple question: Which lender should I choose? Making that choice isn’t easy but this is where we come in. At YesCanDo Money, we understand the mortgage market. With over 30 years of experience helping homebuyers get the right mortgage, we can look at your options with you and point you in the right direction. Furthermore, our service to you is FREE so you don’t need to pay for our support.
How Many Mortgage Lenders Are In The UK?
At the moment, there are around 100 mortgage lenders in the UK. You will find some of these on your high street, such as the aforementioned Barclays and Halifax, but there are also smaller lenders that are not household names. Some of these smaller lenders specialise in mortgages for specific groups of people, such as landlords and the self-employed.
The Major lenders and Biggest Mortgage Lenders:
- Nationwide Building Society
- Royal Bank of Scotland
- Virgin Money
- Yorkshire Building Society
- Coventry Building Society
- Skipton Building Society
Smaller lenders include but are not limited to:
- Kent Reliance
- Metro Bank
There are many more mortgage lenders in the UK. You can compare the mortgage deals they are offering by looking online and using mortgage calculators to calculate which deals you can afford. You can also use our services. As a whole of market mortgage broker, we have access to deals, including those from specialist lenders, that you might not find online.
Who Are The Best Mortgage Lenders In The UK?
This isn’t an easy question as the answer is subjective. The best lender for you might not be the best lender for another, as there are a number of factors you need to take into consideration.
For starters, you need to consider which mortgage type is best for your needs. These include fixed-rate, tracker, and discount mortgages.
You also need to consider the fees that different mortgage lenders charge. Depending on your financial circumstances, some lenders might charge you more than others.
Certain lenders will charge you more interest too. So, while you might notice an attractive mortgage deal being advertised, you shouldn’t automatically assume it will be right for you. In some cases, you might end up paying more than you expected, so it’s always wise to seek the assistance of a fee-free mortgage broker such as ourselves.
So, assessing which lender is best isn’t as straightforward as you might think. However, there are some factors you can take into consideration when narrowing down your search for a mortgage.
Which lenders have the best reputation? A quick Google search will point you in the right direction as you will be able to read online reviews written by mortgage customers.
You should also take into account the number of public complaints each lender has.
The Financial Conduct Authority (FCA) receives thousands of complaints from customers each year, around 60% of which are upheld. You will be able to find more information online.
Consumer champion Which? are also a good source for determining the best and worst mortgage lenders. Which poll mortgage consumers annually so you can get a good understanding of what people think.
In 2021, First Direct and Nationwide Building Society were named the best mortgage lenders of 2021. Various factors were taken into account, including the lender’s customer service, value for money, mortgage costs, and payment flexibility. You can read more of their findings here.
No, we aren’t talking about which lender would win in a cross-country race! Rather, we are talking about the time it takes to approve a mortgage submission after the application has been sent.
If you are in a hurry to move into a new property or to get on the property ladder, it’s understandable that you don’t want to be waiting too long to find out whether your application has been approved or not.
The time it takes for a mortgage to be approved is dependent on a number of factors. If your application is incomplete or if you have a complicated financial situation, then the lender might need further information before they approve it. This can slow the process.
Of course, some lenders are slower than others anyway. You can get an understanding of which mortgage lenders are the fastest by viewing the data below.
We will always present you with the best available mortgage deals for your options. The speed of each mortgage lender changes week to week depending on how busy they are. We are always fully transparent to you with the lender’s current turnaround times.
If you need your mortgage application approved quickly, get in touch with our team. After deciding the type of mortgage you need, your appointed mortgage broker will be able to liaise with the mortgage lender much more efficiently than many brokers and banks. We are experts in chasing the mortgage lenders to push your mortgage application through as efficiently as possible.
Which Mortgage Lender Should I Choose?
As we have discussed already, you should consider the reputation of each lender and the turnaround of their mortgage approvals. You should also look for the lender with the fairest interest rate to reduce your monthly payments.
When comparing lenders, you should:
- Check out the lender’s interest rates online
- Find out which lender will lend the most based on your income
- Read customer reviews
- Consider the data provided by the FCA, Which? and other trusted sources
Your options will include fixed-rate mortgages, tracker mortgage, discount mortgages, and the lender’s standard variable rate mortgages.
Should you be looking at a repayment mortgage and is having an interest-only mortgage even an option?
There are pros and cons to each and these must be considered before you consider borrowing money and start to pay interest from a bank or building society. You can find more information about different mortgage types on our website: Mortgage types explained.
For more information, get in touch with our expert team of mortgage brokers.
If your personal set of circumstances is simple, then you should have the pick of most mortgage lenders on the market. However, if you have a bad credit rating, have no credit history, are self-employed, or looking to acquire a buy-to-let mortgage, then you may need to consider a specialist lender.
These are the lenders most likely to give you a new mortgage deal and as such, could be considered the best mortgage lenders for you.
Are The Largest Mortgage Lenders The Best?
Not necessarily. When trying to get a mortgage, many people naturally gravitate towards Barclays, Nationwide, and those that are part of Lloyds Banking Group. However, you should still compare mortgage deals from smaller lenders too, including the specialist lenders who may be able to give you a better mortgage offer.
Outside of the banks and building societies on your high street, you should also consider online lenders when comparing residential mortgages. They offer digital mortgages that require no human interaction and no paper transfers.
All you need is your smartphone to apply and you can check the status of your application at the click of a button. The benefit of these mortgages is that they are often approved quicker.
For more information, speak to a mortgage adviser. We can compare mortgage lenders on your behalf, including both big-name lenders and those that are smaller in size.
We will consider your circumstances and will let you know if a lender that specilises in in may be better suited to your needs. And we will discuss the types of mortgage each lender offers, with our recommendation on those that will reduce your monthly repayments.
Do I Need A Specialist Mortgage Lender?
If you have a steady income and good credit history, you probably have the means to acquire a mortgage from almost any lender, provided you can prove your finances via your bank statements. However, there are times when it might be in your best interest to look away from the lenders that populate your local high street.
It’s often harder for people that work for themselves to get a mortgage but this isn’t to say it’s impossible. Most lenders will consider your application if you work for yourself but you will need to have:
- Money in your savings account for a good-sized deposit
- Up to 2 years of accounts to prove you have a good income
- A good credit history
However, you might need to call on the services of a specialist lender if you have a bad credit score, don’t have enough for a sizable deposit, and don’t have 2 years of accounts. You are more likely to be accepted in these cases although you will still have to fulfil the lender’s criteria. Lenders include Kensington and Aldermore.
The Help to Buy: Equity Loan scheme was launched on the first of April, 2021. These mortgages are for those looking to borrow money for their first home. Many lenders now accept applicants using the Help-To-Buy scheme, including Nationwide, Natwest, and HSBC. As such, you may not need the services of a lender that specialises in help to buy.
Before making your mortgage application, you will need to apply for the equity loan on the government website.
Shared ownership mortgages are different to residential mortgages. Instead of taking out a loan to pay for the whole property, you take out a mortgage to pay for a share instead. You then pay the mortgage on your share of the property and then pay rent on the rest.
A number of lenders offer shared ownership mortgages, including Nationwide, Lloyds, Leeds Building Society, and Kent Reliance.
Which Lenders Accept 5% Deposits?
If you don’t have the ability to save up for a large deposit, then choosing a lender that offers 95% loan to value (LTV) mortgages may be something you are considering. For you, these lenders could be ‘best’ for your financial situation. You would need to save up for the 5% deposit and the lender will offer you a mortgage that covers 95% of the purchase price of the property.
Thanks to the mortgage guarantee scheme, many lenders are now able to offer these mortgages again. These currently include:
- Virgin Money
To get a 95% mortgage, you will need a good credit score.
The advantage of this type of mortgage is that it makes it easier for homebuyers to purchase a property.
However, there are drawbacks.
The interest rate will typically be quite high and it can sometimes be more of a challenge to remortgage. If the value of the property of your home falls, you could also end up in negative equity.
Therefore, it might be in your best interests to save up for a larger deposit as you will then have access to mortgage deals with a lower interest rate. As such, the mortgage term should be lower so you will pay off your mortgage faster. When you compare mortgages, you will also have a wider choice of lenders and mortgage deals.
Speak to a mortgage broker to learn more, as they will advise you on these and other mortgage deals on the market.
Check out our guide to 95% mortgages
Choosing a mortgage lender that’s right for you
When choosing a mortgage lender, there is much for you to think about.
You should consider the reputation of each lender and their ability to offer the best mortgages at the fastest turnaround time.
You should look at the interest rates they are offering, be that on a fixed or variable rate mortgage.
And you should consider your own financial circumstances before choosing a mortgage lending provider. To ensure you get the best rates possible, it is wise to:
- Check your credit report and fix any bad credit problems
- Save up for a larger deposit to give you the means to lower your monthly repayments
- Choose a lender that is more likely to offer you a better rate than others
Get a mortgage with the help from YesCanDo
We will point you towards the best lender for your needs and give you all the help you need should you decide to make an application. Oh, and did we mention that all of our services are FREE? Browse our website to learn more.
SPEAK TO A MORTGAGE ADVISOR
Let us know what the best time is for us to call you. We will get one of our mortgage advisors will be in touch to talk through your situation and available options.