Best mortgage lenders UK: Find the best bank for a mortgage

• L&C: Best mortgage broker
• Halifax: Best for residential mortgages
• HSBC: Best for remortgaging
• First Direct: Best for online customer service
• Newcastle Building Society: Best for first time buyers
• Leeds Building Society: Best for buy-to-let
• Lloyds Bank: Best for low income or low deposit
• Halifax: Best for retirement

Choosing the “best” lender is more about which one offers what you need and what’s important to you.

However, there are definitely qualities that mortgage-hunters typically look for in a lender – such as low-interest rates, low fees and generous terms. Many consumers also want lenders with a great track record in customer service.

In spite of our recommendations, it’s important to do your own research to learn which lenders will work best with your situation.

Many people will search for the best mortgage deal through price comparison websites. These websites will list the cheapest deals based on the criteria you select. However, some lenders don’t appear on these websites and some price comparison websites prioritise affiliate lenders, even if they’re not the best.

Alternatively, you could use a mortgage broker. This individual has expert knowledge of mortgage providers’ lending criteria, which could be invaluable if you have a low income or have unique circumstances. They’ll search for the best deal on your behalf, including those that are only available through broker services, so you can feel confident about being recommended a deal that you’ll actually be approved for. You’ll pay a fee for their services though.

• Decide on a mortgage type. First, decide whether a fixed rate mortgage or variable rate mortgage is more suited to your plans and budget. This is also a good time to find out what your credit score is and know what loans are available to you. Learn more about credit scores and mortgages.
• Compare different lenders for different mortgages. Compare what different banks and lenders are offering for your chosen loan type and deposit amount. It is also important to always get more than one quote when looking for a mortgage. This will ensure you get a good mix of options from different types of lenders.
• Ask for a key facts illustration. A lender must give you a mortgage estimate by law. This will show you interest rates, repayment costs and closing costs for your potential mortgage. Some lenders also have a mortgage calculator feature on their website where you can receive a quick quote.
• Repeat until you find a mortgage you want. It’s normal to ask for estimates from more than one lender until you find a mortgage you’re happy with.

The introductory rate is one of the most important factors to consider when comparing mortgages, but it doesn’t tell the whole story. Here are some other elements to take into account.

• Term length. Fixed-rate mortgages with longer terms have higher rates, but you’ll be protected against potential rate rises for longer. It’s often recommended to apply for short-term mortgages and remortgage once the introductory term ends, but there’s no guarantee you’ll be in a financial position to be approved for a remortgage at that time, which is another reason why some people prefer the security of long-term mortgages.
• Extra fees. Most mortgage products will have one-off fees attached to them. These should be considered as well as the interest rate. The best way to compare mortgages is to calculate the total amount you’ll spend during the introductory term. The main fee to look out for is an “arrangement fee”. This often adds up to several hundred pounds, even though some mortgage products don’t include this at all. Some lenders will give you the option to add any fees onto the mortgage, but this should be avoided whenever possible, as it will mean paying interest on them for the entirety of your mortgage term.
• SVR (standard variable rate). This is the rate you’ll be switched onto after the introductory rate ends. It’s best to remortgage before you’re moved on to this significantly higher rate, but that’s not always possible, so it’s worth bearing this rate in mind.
• Total repayable. This is the total amount you’ll owe over the length of your mortgage. This won’t be too important if you’re planning to remortgage after the introductory term ends, but it’s still a useful figure to help you compare products. The easiest way to reduce your total repayable is to cut the length of your mortgage. Your monthly repayments will be higher, but the amount of interest paid will drop significantly.
• LTV (loan-to-value). This is the amount of money you’re borrowing from your lender, expressed as a percentage of your property value. With a higher deposit, you’ll be able to access mortgages with a lower LTV ratio. These mortgages have lower rates, plus you’ll pay less interest in total.