How to get cheap mortgage rates
Are you a first-time homebuyer or looking to remortgage? Securing a cheap mortgage rate can make a significant difference in your monthly payments. In this guide, we'll walk you through how you could access cheap mortgage deals and secure the best mortgage deal for you.
What is the lowest mortgage rate offered today?
Current mortgage rates are between 4-5.5%, with the lowest mortgage rate offered from our panel of over 100 lenders at 4.03% for a 5-year fixed rate for 60% LTV 35-year mortgage. But
one mortgage lender has recently announced a five-year fix rate for 3.99%, but only for those with a 40% deposit. Your deposit size, how long you choose to fix for as well as other factors like your credit score will impact the mortgage rate you will be offered.
Interest rates accurate as of August 2024.
See the best mortgage rates today
Use our comparison tool to explore mortgages from our panel of over 100 lenders. To see what rate you could be offered, create a free Tembo plan for a personalised recommendation.
The interest rates shown are an indication only and are not guaranteed. Current rates may have changed by the time you come to apply.
What type of mortgage has the lowest rate?
Putting down a bigger deposit so you can have a lower LTV (Loan to Value), could help you access lower interest rates. Your credit score also plays a pivotal role in determining the mortgage rate you’ll be offered, Check your credit score for any issues, pay off any outstanding debts you have, and avoid applying for new credit cards or loans in the months leading up to your mortgage application.
Read more about credit scores here
Different types of mortgages come with varying interest rates, so consider different ones in your search. Fixed-rate mortgages offer stability with a consistent interest rate over a set period of time. With a variable-rate mortgage, your interest rate will change over time to reflect the current market. If rates drop, this means you will benefit from your rate also going down. But the reverse is also true, and there’s no guarantee of what rates will do in the future.
Remember, you don’t have to settle for the first mortgage offer you receive. By using a mortgage broker, you can get your eligibility checked against a wide range of mortgage products include those you as a customer won’t have access to, and can help you find the best rate. Here at Tembo, we have access to over 20,000 mortgage products!
You might also like: What are mortgage interest rates and how do they work?
Are there other ways to make mortgages more affordable?
There are numerous budget-boosting options out there for both first-time buyers, home movers and remortgagers. These include family-support options such as an Income Boost, Deposit Boost or a Savings as Security mortgage. Don’t worry if your loved ones aren’t able to help, there are other options too. From shared ownership to government schemes and home developer discounts, there are lots of alternative ways to buy a house or remortgage.
Need help finding the right mortgage for you?
We’ve helped thousands discover how they could boost their affordability to get on the ladder sooner, move up it or remortgage. See your options by creating a free Tembo recommendation today.
