How To Get a Lower Mortgage Interest Rate

Finding the lowest mortgage rate for your circumstances requires cutting through the ‘best deals’ and ‘special offers’ advertised and getting to the facts of what’s on offer.

In this article, you’ll learn how to boost your chances of qualifying for a lower mortgage rate than what you may have seen advertised and how we can help you secure it.

How to get a lower interest rate on your mortgage

There are ways to secure a lower mortgage interest rate than on the high street.

Here are the main ways you can improve your chances of getting one:

• Use a mortgage broker: Getting the lowest rate is not a case of simply applying for the lowest one you can find. You first need to check that you meet the lender’s eligibility criteria, as rejection can hamper your chances of securing a low rate with subsequent applications. A mortgage broker will ensure you only apply where there is a strong chance of approval.
• Put down a bigger deposit: A larger deposit doesn’t only reduce the amount you need to borrow. It can also strengthen your application and give you access to a wider pool of lenders and products. With the biggest possible deposit and a mortgage broker onside, you can be confident you’ll get the lowest rate you qualify for.
• Credit optimisation: Your credit files significantly impact the outcome of a mortgage application. Ensuring they’re accurate and current can prevent an application from being unnecessarily affected.
• Green mortgages: With lenders keen to make their loan books sustainable, green mortgages are becoming increasingly popular. Provided your property meets the criteria and you know which providers offer green mortgages, it’s a good way to find a low rate.

How a broker can help you lower your rate

The role of a mortgage broker isn’t just to find you a mortgage; it’s to find you the best possible mortgage according to your circumstances.

That’s why it’s essential to use a mortgage broker who specialises in helping people in your situation.

We can match you with a mortgage broker who will…

• Have deep knowledge of the UK mortgage market
• Assess the advantages and disadvantages of different loan options (e.g. fixed or variable rates).
• Know which lenders offer the lowest rates to those in your situation
• Help optimise your application to unlock cheaper rates where possible

We work with brokers all over the UK who can help you find the lowest rate for your mortgage. This includes advisors who operate in niche sectors and work with specialist lenders to find low-rate mortgages for people with complex income streams or a bad credit history.

To talk to a mortgage expert today and get a head start on lowering your mortgage rate, get in touch now.

Securing a lower rate on your remortgage

When your mortgage is up for renewal, your existing lender will offer you a new deal. This might seem the most convenient option, but it may not be the cheapest.

A broker will compare your current lenders’ offer with every other deal on the market to ensure you get the best rate.

Regardless of when you took out your last mortgage, the picture has likely changed significantly as UK markets have experienced a period of great change. Only with expert help can you expect to find the best lender and lowest rate.

But, to give you an idea as to what mortgage rates are currently available, take a look at the rates table below:

The rates quoted above were correct at the time of writing and are subject to change at any time at the lender’s discretion. The best way to keep track of the rates available at any given time is to speak to a mortgage broker.

Other ways to lower your mortgage payments

Sometimes, remortgaging will be your best route to lowering your repayments. Sometimes, the brokers we work with will find better deals for homeowners that reduce the overall cost of borrowing, even if it means paying a fee to exit an existing mortgage early.

On other occasions, they’ll find short-term solutions to help people reduce their payments until better deals are available.

Options here can include:

• Extending your term
• Switching to an interest-only mortgage
• Changing from a fixed to a variable rate or vice versa
• Get off your lenders’ standard variable rate (SVR)
• Switching to an offset mortgage

This is just a sample of ways to help reduce mortgage payments. If you think one of them might be right for you, it’s essential you speak to a broker – even before you contact your current lender.

That’s because your existing provider can only offer advice on their products. If you want to reduce your mortgage payments, you need to compare every deal on the market to ensure you get the best rate.

Why use Online Mortgage Advisor

Our broker matching service assesses your situation and connects you with a mortgage advisor who has a track record of helping people like you get approved.

And with a broker handpicked by Online Mortgage Advisor, you’re guaranteed:

• No impact on your credit report
• A bespoke, personalised service
• Support and guidance throughout the entire mortgage application process
• £100 cashback if you don’t get approved through us but get a mortgage elsewhere

To get matched with your ideal mortgage broker, call today on 0330 818 7026 or enquire online.