How to find the right mortgage

Quick answer: Compare the total cost, not just the rate: fees, term, monthly payments and early repayment charges. Check what deposit you have, then use a whole-of-market broker or comparison tool. Pick a deal you can afford now and if rates rise.

How to find a mortgage lender

Making sure you’re on the best mortgage deal is crucial to getting your finances in order. After all, it’s likely to be your biggest monthly outgoing.

There are several ways to get a home loan that combines the lowest possible interest rate while matching your lifestyle.

Tips for getting a mortgage

Here are a few tips to help you find a mortgage that’s right for you.

Finding a mortgage yourself

For those confident enough to navigate the mortgage market alone, there’s plenty of help online which allows you to access rates from across the market. Our mortgage calculator shows you how much your mortgage will cost and how much you could borrow.

Comparing mortgages online

On comparison websites, you can find the lowest rates available for the type of mortgage you are looking for — whether it’s a fixed rate, tracker or offset for two, three, five or 10 years. Searching is free and you can do it from the comfort of your own home.

But you won’t get any help with finding the most suitable type of loan for your circumstances by using a comparison site. These websites simply show the rates on offer.

Using a mortgage eligibility tool

If you want to do some research into the lenders that are likely to offer you the mortgage that you want, try using a mortgage eligibility tool.

By entering a few details, it will reveal which mortgages you are likely to be accepted for and how much you could borrow, based on lenders’ criteria.

Using this tool will allow you to be more informed if you speak to a mortgage broker for professional advice, which could save you time. Just remember, we’re a credit broker, not a lender.

Using a mortgage broker

There are thousands of mortgage deals available, each with their own rates, fees and conditions. So, it can be really helpful to get an expert to search on your behalf.

That’s what a mortgage broker does. Their job is to track down the best mortgage they can for you. They search the market and can also access deals not available to the public.

Your broker will guide you through the mortgage application process and should know what lenders are likely to accept you. For example, they’ll know which lenders are best for those who are self-employed, have a poor credit history or are first-time buyers.

Credit and Mortgage Expert

Our expert says

Mortgage brokers can be incredibly useful. But remember you don’t have to use the broker your estate agent recommends. Like with most things, it pays to shop around.Jacqui Hamilton, Experian UK

How to find a mortgage broker

A quick search online will bring up plenty of brokers, but which one do you choose? It’s never a bad idea to ask for recommendations and do your research. At Experian, we’ve teamed up with an award-winning broker called Picnic.

Before you choose any broker, check these three things first:

1. Are they whole-of-market? Some brokers don’t cover all mortgage lenders. In fact, some are tied to a small panel of lenders, which means you could miss out on cheaper or more suitable deals.
2. What fees do they charge? Some brokers charge fees, some don’t. If they don’t charge a fee, they’ll get paid commission by lenders. Ask to avoid any surprises.
3. Are they regulated? All brokers must be regulated by the Financial Conduct Authority. That means if something goes wrong or you’re unhappy with how you’ve been treated, you can complain to the Financial Ombudsman. You can check if a broker is regulated on the Financial Conduct Authority register.

Picnic mortgages

Our award-winning mortgage partner Picnic will help you find your ideal mortgage from more than 100 lenders.

You’ll get a dedicated team of experts who’ll find your top offer and make sure it’s right for you.

Best of all, they do all the mortgage legwork, so you don’t have to, handling the whole process from start to finish. All you need to do is fill in a quick form. It only takes a minute. No credit score impact, no endless questions.

We’re a credit broker, not a lender.

Using your bank

You can check what mortgage deals your bank can offer as a starting point. But remember they can only offer a narrow range of options from the bank’s own range. If you want to get the best and cheapest deal, it’s always best to shop around.

Online mortgage brokers

Online mortgage brokers let you search, compare and apply for a mortgage completely online.

You don’t usually have the option of discussing your mortgage needs with a broker on the phone or face-to-face. Because the process is mostly automated, online mortgage brokers are sometimes called “robo-advisers”. A human mortgage broker will review your application towards the end of the process.

An online-only mortgage broker could be worth considering if your mortgage situation is straightforward, and you want to complete your application quickly and at a time that suits you.

On the other hand, online brokers offer less help and support. The mortgage deals they recommend will be decided by an algorithm, not a human. You don’t get the judgement and personalised advice you’d receive from a traditional broker.

FAQs

Do I need a mortgage broker?

It’s not required, but a good one can save time and help you avoid a costly mismatch. A broker can compare lenders, check which deals you’re likely to qualify for, and factor in fees, features and affordability, not just the rate. It’s worth asking whether they’re whole-of-market, whether they charge you a fee, and whether they get commission from the lender.

You can go direct to a lender, but then you’ll need to compare deals yourself and be confident the mortgage suits your circumstances.

How do I find the cheapest mortgage rates?

A mortgage comparison tool or a mortgage broker can help. The cheapest mortgage rate is usually the one with the lowest total cost for your situation, not just the lowest headline rate.

Start with your loan-to-value, or LTV: that’s the percentage of the property price covered by your mortgage. A bigger deposit usually means a lower LTV and better rates. Then compare arrangement fees, cashback, early repayment charges and the total amount payable. Adding a fee to the mortgage can cost more because you’ll pay interest on it.

Do I need a mortgage broker to remortgage?

It’s not required, but they can help. You can switch to a new lender yourself, or ask your current lender for a new deal, known as a product transfer. A broker can help if your income, credit history, property value or borrowing needs have changed. They can also help you check whether switching saves money once you include fees.

Avoid drifting onto your lender’s standard variable rate without checking your options, as it can be more expensive than fixed-term deals.

How do I compare mortgage rates?

Compare mortgage rates on the same basis: same loan amount, deposit, property value, mortgage type and deal length. Then add the costs around the rate, including arrangement fees, broker fees, legal fees, valuation fees, cashback and early repayment charges.

Annual Percentage Rate of Charge, or APRC, shows the yearly cost if you kept the mortgage for the full term, typically 25 years. APRC includes fees as well as interest. But if you plan to switch after a two-year or five-year deal, compare the total cost over that deal period too.

How do I compare mortgages with different terms?

The mortgage term is the number of years you’ll take to repay the loan. When you take out a mortgage, you’ll decide how long the term is. A common mortgage term is 25 years. A longer term can cut monthly payments, but you’ll usually pay more interest overall. A shorter term costs more each month but can reduce the total interest bill. Experian’s mortgage calculator lets you see how changing the term will affect how much your mortgage will cost.