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Best Mortgage Uk - Finding the Best Mortgage in the UK

rate type mortgages fixed

Taking out a mortgage is one of the most important situations most people will face in their lives. A home is the most expensive purchase a first-time buyer will make. Since you must live with a mortgage for up to 30 years, making a bad choice on mortgages can have dire consequences that can ruin what should be your best years.

Not so long ago, it was a simple matter to get approved for a mortgage. It was always the best mortgage, but it was possible to get approved. Lenders have become stricter in recent years and getting a mortgage in the UK is a bit more complicated.

The first decision to make is when, exactly, is the best time for you to take out a mortgage. If you haven’t had a chance to save up at least a 10 percent down-payment, getting approved for a UK mortgage could prove to be next to impossible.

Once you have a down-payment saved up, the next choice that must be made is what type of mortgage to take out. There are several types of mortgages in the UK available. The best mortgage is not the same type of mortgage for every situation. An experienced lender or broker should be able to advise you on the best mortgage in the UK, but it helps to go in prepared with some basic knowledge so you know you are being steered in the right direction.

Once you decide on the type of mortgage that is best for you, it is necessary to find the lender with the lowest interest rates for that particular type of UK mortgage. Several real estate business papers are available that provide all of the current interest rates. Some web sites can automate the search and provide comparison tables, as well.

Here are the best mortgages in the UK by type of mortgage.

Base Rate Tracker Mortgages – This is a variable-rate UK mortgage that follows the Base Rate of the Bank of England. The rate is predetermined as a percentage above the base rate, so a bank cannot arbitrarily change the rate independently of the Base Rate. As the interest rate changes on this mortgage, your monthly payments will rise or fall accordingly. This type of mortgage has lower interest rates than other types, and sometimes free benefits are included, such as free property valuation and standard legal fees. Here are some banks to watch for this type of mortgage:

HSBC Bank (0800-169-6333)
• NatWest (0800-158-2919)
• Yorkshire BS (0845-120-0100)

Fixed Rate Mortgages – With a fixed-rate mortgage, the APR cannot change for the agreed-upon fixed-rate term. This can be for the lifetime of the mortgage, or it can be for any portion of the total term. During the fixed-rate term, your payments will stay the same even if the Bank of England Base Rate goes up. This means you have the advantage of always knowing what your payments will be during this period. The bad part is that if the Base Rate goes down, you still have to pay the higher fixed rate. The best mortgages in the UK for the fixed-rate type come from these lenders:

• Santander (0800-023-2761)
• Yorkshire BS (0845-120-0100)
ING Direct (0800-032-8822)

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