The Bank of England has cut the base rate to 4.25%. Here’s how it will impact interest rates and the mortgage market, and what it means for your move.
Mortgages
Arranging a mortgage can feel complex.
How can you be sure you're getting the best mortgage rate for you, choosing the right mortgage term and aren't paying too much in fees?
Explore our range of mortgage guides, get the lowdown on the latest mortgage news and find the best mortgage deal for you.
Explore mortgage options
Base Rate cut to 4.5%
Bank of England Base Rate has been cut to 4.5%, its lowest point in 18 months. Find out what this could mean for your mortgage.
Arrange a Mortgage in Principle
A Mortgage Agreement in Principle (otherwise known as an MIP or AIP) is a document stating how much you're able to borrow from a lender, provided the information you've supplied is accurate.
It’s the first step in the process of securing a mortgage.
First-time buyer mortgages
Work out how much you can borrow, arrange your mortgage in principle and secure your mortgage offer.
How to arrange a mortgage and secure the best rates available.
Mortgages for moving home
When you're moving to another property, you can port your existing mortgage, extend your current mortgage or remortgage completely.
Let's take a look in more detail at mortgages for moving home.
Mortgages for additional borrowing
Additional borrowing is when you borrow more on your existing mortgage.
You can borrow more from your existing lender, borrow from a different secondary lender or remortgage completely.
Let's take a look in more detail.
Buy-to-let mortgages
When you're purchasing a property for someone else to live in, the rules around mortgages and stamp duty change.
Buy-to-let mortgages often come with higher interest rates, and interest-only mortgages are a popular choice among landlords.
Let's look into how it all works.
Mortgage calculators
Work out how much you could afford to borrow and what your monthly repayments might be.
How to get a mortgage
Get your finances ready
Compare mortgage rates
Decide the length of your mortgage term
Agree on a monthly payment you can afford
Arrange a mortgage agreement in principle
Secure a mortgage offer
Average mortgage rates: 95% LTV (January 2025)
1-year fix - unavailable
2-year fix - 5.7%
3-year fix - 5.57%
5-year fix - 5.32%
10-year fix - 5.75%
Average mortgage rates: 90% LTV (January 2025)
1 year fix - 5.28%
2 year fix - 5.45%
3 year fix - 5.23%
5 year fix - 5.02%
10 year fix - 5.34%
Average mortgage rates: 75% LTV (January 2025)
1-year fix - 4.39%
2-year fix - 4.71%
3-year fix - 4.67%
5-year fix - 4.5%
10-year fix - 4.82%
Average mortgage rates: 60% LTV (January 2025)
1-year fix - 4.22%
2-year fix - 4.54%
3-year fix - 4.45%
5-year fix - 4.32%
10-year fix - 4.76%
Save money with Mojo Mortgages
Allow award-winning Mojo to show you the best rates available to you. A whole-of-market broker, Mojo work with over 70 lenders. And they won't charge you a penny for their services.
How it works
Fill in a few details
Tell Mojo about yourself and your situation so that they can get to know you, provide you with advice and ensure you’re eligible. It will take around 8 minutes.
Call with an expert
Book a call and speak to one of Mojo's in-house mortgage experts, who will compare thousands of deals from over 70 lenders to find one suited to you.
Get a mortgage
Leave it with Mojo; the paperwork, the application, the bank poking and protection insurance, they'll handle all the stress. And if you’re remortgaging they could save you a lot of money.
How to get the best mortgage rates
There are two ways to go about finding the best mortgage deal available for you.
1: Approach banks and building societies
You can approach any lender to secure a mortgage.
If you want to get a mortgage as quickly as possible, going to your existing bank could be a good option.
Equally, if you have strong preferences for a particular lender or mortgage and are confident in the process, you may prefer to handle the mortgage application yourself.
You can approach as many lenders as you wish to find the best mortgage rate options for you, although it can be time-consuming to repeat the process with each lender.
2: Work with a mortgage broker
A mortgage broker will scour the whole market to find the best deals on your behalf.
They have access to deals that aren’t available on the high street as some lenders only work through brokers.
They can help to speed up the move and reduce the stress of the house buying process.
They can also help out if your credit rating isn’t where it ideally needs to be, if you have income/affordability issues, a less straightforward employment history or are buying a unique property.
The latest news on mortgages
Are interest rates going up or down? And what does this mean for mortgages? Get the latest.
Mortgage rates are not expected to fall further this year, but rising wages are likely to improve affordability for buyers as house prices stay flat.
27% of homeowners with a mortgage are on their lender’s standard variable rate. Could you be one of them?
First-time buyers accounted for more than half of all home loans in 2023 - and more than two-thirds teamed up to secure their own homes.
The first full week back after the new year has seen buyer interest jump out of the blocks faster than last year as mortgage rates drop. Get the latest with Richard Donnell.
95% mortgage guarantee scheme extended, 40,000 new homes to be built and Local Housing Allowance unfrozen to help renters on the lowest incomes.
Marathon mortgages, cutting pensions and raiding savings: how homeowners are coping as mortgage rates hover at their highest levels for 15 years.
42% of adults aged 18-39 who don’t own a home say they’ve given up on the idea of buying one in the next ten years, including 38% of those earning £60,000+.
As lenders withdraw some of their products, we take a look at what’s triggered the current turmoil in the mortgage market and what buyers and homeowners can do.
As the cost of borrowing increases, there are steps buyers and homeowners can take to help keep mortgage payments manageable.
The Bank of England’s latest increase adds a further £60-a-month to repayments for homeowners with a £200,000 variable mortgage.
Core inflation rose to a new 31-year high in May, suggesting the Bank of England will have to increase interest rates by more than previously expected.
A complete guide to buying a home
Buying a home is a big deal. From finding that perfect pad right through to exchanging contracts, we’re here to guide you every step of the way. Written in partnership with The Brain Charity to help neurodivergent folk with moving home.
Mortgage guides: everything you need to know about mortgages
Whether you're a first-time buyer, home mover or landlord, our mortgage guides are here to help.
A good rule of thumb is that you can borrow between 4 and 4.5 times your total household income. Let's work out how much you can borrow for a mortgage.
From sorting an agreement in principle to arranging the mortgage offer, how do you apply for a mortgage when you're a first-time buyer? Let's take a look.
Want to give buy-to-let a go? Here’s our complete guide to becoming a landlord, from getting a mortgage and choosing a property to finding the right tenant.
About to apply for a mortgage and not sure how to prepare? Here's how to get lender-approval ready and boost your chances of success.
Want to renegotiate the price of the property you’re buying? Our guide has the ins and outs on how it could affect your mortgage offer.
Retirement interest-only mortgages are designed to help those who can't repay their mortgage in full when they retire. Here's how they work.
What is the Bank Rate? Why do interest rates change? And what does it all mean for your mortgage repayments? Here’s everything you need to know about interest rates and how they affect you.
Ready to start looking for a mortgage and not sure where to start? Let a mortgage broker guide you. They have access to deals that aren't always available on the high street.
What’s the difference between an interest-only mortgage and a repayment one? Let’s take a look at the pros and cons of both.
Legally, you're never too old to get a mortgage. As long as you've got the means to pay it, there'll be mortgage providers willing to lend it.
Looking to get your first mortgage or lock in a new one? Let's take a look at the pros and cons of the different types of mortgages available.
With Brits living and working longer than ever, more of us want to take out mortgages later in life.
Got questions?
We know getting a mortgage can seem pretty complicated. So we’ve listed the questions we hear all the time.
How long does a mortgage application take?
It can take from two to six weeks to get a mortgage approved. Most mortgage offers are then valid for six months.
So if you see a great deal out there and want to reserve it, it's worth speaking to the lender or a mortgage broker in advance.
How long does a mortgage offer last?
A mortgage offer usually last for 3-6 months, although this can vary according to the lender.
If you don't buy a property within this time frame, you may need to ask for a mortgage offer extension.
What's a mortgage?
A mortgage is a type of loan secured from a lender in order to buy a property or a piece of land.
A mortgage is typically paid back on a monthly basis over a number of years, the maximum being around 40 years in the UK. Today, the typical mortgage term is 32 years.
What types of mortgages are there?
There are several different types of mortgages: fixed rate mortgages guarantee certainty on your monthly payments, while tracker and variable rate mortgages fluctuate alongside interest rates.
What does a mortgage broker do?
A mortgage broker helps you find the best mortgage by comparing available deals and assessing the total costs, including interest and fees.
They also evaluate your chances of approval to avoid unsuccessful applications.
How do I go about remortgaging?
To remortgage, you can either approach your current lender or another lender, or you can ask a mortgage broker to scour the whole market for you to find the best deal for you.