There are many factors lenders look at when working out how much you can borrow. These include your salary, your spending, any regular outgoings and your credit history. Use our affordability calculator to see how much lenders might be willing to lend you.
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Looking for a mortgage? Get answers to your mortgage questions and an expert broker to find the best mortgage deal for you
Best mortgage rates today vs average rates
It's important to be aware that sometimes the deals with the lowest interest rates have additional product fees which can make your overall mortgage more expensive.
Below are some of the cheapest initial mortgage rates currently available (via our broker partner Mojo) compared to the average rates.
These rates are just an example to give you an indication of what's in the current mortgage market:
| Lowest UK rates | Average UK rates | |
|---|---|---|
| Two year fixed rate (75% LTV) | 3.56% | 4.48% |
| Two year fixed rate (90% LTV) | 3.96% | 4.73% |
| Two year fixed rate - buy-to-let (75% LTV) | 2.20% | 5.04% |
THESE RATES MAY NOT BE AVAILABLE WHEN YOU ARE READY TO SUBMIT AN APPLICATION
Date Updated 29 January 2026
A mortgage broker can look at your finances and help you find the best mortgage deal for you.
Your home/property may be reposessed if you do not keep up repayments on your mortgage. The FCA does not regulate buy-to-let mortgages for commercial and investment properties.
Mortgage industry insights
The current Bank of England (BoE) base interest rate is 3.75%. While this could seem high, historically the base rate has been as high as 17% back in 1979. Changes in the BoE base rate can affect your variable mortgage rate, which may change your monthly payments. This is because the base rate influences how much banks charge to lend money. If you have a variable mortgage, your payments can go up or down when the base rate changes.
If you're on a fixed-rate deal, an increase in the base rate won't result in an increase in your payments initially. However, it might mean the fixed-rate mortgage deals available to you when you next remortgage or move home have different rates.
The next decision on whether to increase the base rate will be made on 5 February 2026.
How to get a mortgage
Getting a mortgage can be daunting, there's a lot to organise, but if you follow these steps you'll be on your way to securing a place you can call home:
Understand what mortgage you can afford - review your finances to understand how much deposit you can put down and the mortgage you can afford. Our mortgage affordability calculator helps give a rough estimate on how much you could borrow, but contact our expert mortgage broker Mojo to get a better idea on affordability.
Get a mortgage in principle - you might need to get a mortgage in principle (MIP) before you can start house hunting. Also called an agreement in principle (AIP) or decision in principle (DIP), many estate agents won't let you view a house unless you have one so they know you're serious about buying. A MIP essentially shows how much money the lender is willing to let you borrow, based on your financial situation, but it isn't guaranteed.
Make an offer - once you’ve found a home, submit an offer to the estate agent. Your offer tells the seller how much you’re willing to pay and can be accepted, rejected, or negotiated. You can make an offer verbally, but putting it in writing helps avoid confusion.
Gather the documents you'll need - you need to show your mortgage lender that you can afford the monthly repayments. So you need to gather proof of identity and address, bank statements, P60 forms, payslips and other financial documents. If you're self-employed, you'll need to show documents proving a steady income from the past two or three years.
Apply for a mortgage - you can speak to our partner expert mortgage brokers at Mojo Mortgages who will provide mortgage advice and submit an application for you.
Getting your best mortgage rate with Mojo Mortgages
Your Mojo expert can offer advice on finding the right deal for you
Tell us your mortgage information
You'll be asked a variety of questions to get a better understanding of your situation to help find a mortgage deal
Compare with Mojo's deal table
If you're eligible, you'll be shown a table of mortgage deals based on the information you provided
Get your best mortgage deal with an expert
Mojo experts will review the mortgage deal you like, make sure it's your best option, and sort the rest out for free
How much can I borrow?
Lenders look at your overall financial health to decide how much they are willing to lend you for mortgages. While most lenders use a multiple of your annual income, typically between 4 and 4.5 times your salary, this is only a starting point.
What lenders check
To find the best mortgage deals for your budget, lenders will assess:
Your annual income: This includes your basic salary plus any consistent bonuses, overtime, or additional income streams.
Monthly outgoings: Lenders perform "stress tests" on your finances to see if you can still afford mortgage rates if they were to rise in the future.
Debt-to-income ratio: They will look at your existing credit card balances, car loans, and student debt to ensure you aren't overstretched.
Your credit score: A healthy credit history can sometimes unlock higher lending multiples or better mortgage deals.
"Knowing your borrowing limit is the first step in any property search. It’s not just about the maximum a bank will give you, but what you can comfortably afford to repay each month without changing your lifestyle."
Mortgage calculators
How much can I borrow?
There are many factors lenders look at when working out how much you can borrow. These include your salary, your spending, any regular outgoings and your credit history. Use our affordability calculator to see how much lenders might be willing to lend you.
Home equity calculator
This tool can show you how much equity, or value, you have in your home. Enter your home's current value, your outstanding mortgage and any other debts secured against your home to find out how much equity you have built up in your property over the years.
Stamp Duty calculator
Stamp Duty is a tax on property transactions that you might have to pay when you buy a home. It’s important to check whether you have to pay it and how much it will be. Use our calculator to find out how much Stamp Duty you might have to pay.
Mortgage calculators
How much can I borrow?
Home equity calculator
This tool can show you how much equity, or value, you have in your home. Enter your home's current value, your outstanding mortgage and any other debts secured against your home to find out how much equity you have built up in your property over the years.
Stamp Duty calculator
Stamp Duty is a tax on property transactions that you might have to pay when you buy a home. It’s important to check whether you have to pay it and how much it will be. Use our calculator to find out how much Stamp Duty you might have to pay.
Types of mortgage rates
Fixed-rate mortgages
A fixed-rate mortgage has an interest rate that is set for a specific period of time. This means your mortgage repayments won’t go up or down for the duration of your fixed-rate. This is very useful when it comes to budgeting as you’ll know what your mortgage payments will be for the duration of your deal.
However, if the Bank of England base rate drops during your fixed-rate period, you won’t benefit from lower interest rates.
You can get a 2-year fix, 5-year fix or 10-year fix, but there are also deals that last 1, 3, 7 or longer than 10 years.
Variable-rate mortgages
A variable-rate mortgage has an interest rate that can go up or down. This means your repayments could change throughout the course of your mortgage term. A variable-rate mortgage might be cheaper than a fixed-rate mortgage initially but could end up being more expensive overall.
Variable-rate options include discounted and tracker mortgages, as well as standard variable rate (SVR) mortgages.
Tracker mortgages
A tracker mortgage tracks the Bank of England base rate by a set amount. For example, you might get a tracker mortgage that is set to track at two percentage points above the base rate.
This means when the base rate rises or falls, your interest rate will rise or fall with it at two percentage points. So for example, if the base rate rises to 3%*, you pay interest at 5%.
* for demonstration purposes only, the UK base rate is currently 3.75%
Discounted mortgages
A discounted mortgage gives you a lower interest rate than the lender's standard variable rate (SVR) for a set time or the life of the loan. The lender will charge you a rate that stays a specific amount below their SVR. Because the SVR can change, your monthly payments may go up or down.
Standard variable rate (SVR) mortgages
If you have a fixed, discounted, or tracker mortgage, you will move to your lender's SVR once your initial deal expires. This is the default rate your lender charges. It is usually more expensive than your introductory rate, so your monthly costs will likely go up.
f you don’t want to move onto your lender's SVR after your initial deal ends, you should consider remortgaging to a new deal.
Kirsty Lacey, Mortgage Expert at Mojo Mortgages, said:
“Being on an SVR offers more flexibility than most deals because you usually don't have to pay early repayment charges (ERCs). This can be helpful if you’re planning to move house soon. However, SVRs are typically a lender's most expensive rate.
You can often find other options, like tracker mortgages, that also have no ERCs but offer much better interest rates. A mortgage broker can help you compare these to find the right deal for your specific circumstances.”
Offset mortgages
Offset mortgages allow you to use your savings to reduce the amount of interest you pay on your mortgage. This type of mortgage links your savings account to your mortgage, and the lender only charges you interest on the difference.
For example, if you have a £200,000 mortgage but hold £25,000 in savings, you only pay interest on £175,000.
You can still withdraw your money whenever you need it, but your interest savings will drop if your savings balance goes down.
These mortgages are usually most beneficial if the interest you save on your mortgage is more than the interest you would have earned in a traditional savings account. Keep in mind that your savings must be with the same bank or building society as your lender, and you can choose between fixed or variable rate deals.
Types of mortgage rates
Fixed-rate mortgages
A fixed-rate mortgage has an interest rate that is set for a specific period of time. This means your mortgage repayments won’t go up or down for the duration of your fixed-rate. This is very useful when it comes to budgeting as you’ll know what your mortgage payments will be for the duration of your deal.
However, if the Bank of England base rate drops during your fixed-rate period, you won’t benefit from lower interest rates.
You can get a 2-year fix, 5-year fix or 10-year fix, but there are also deals that last 1, 3, 7 or longer than 10 years.
Variable-rate mortgages
A variable-rate mortgage has an interest rate that can go up or down. This means your repayments could change throughout the course of your mortgage term. A variable-rate mortgage might be cheaper than a fixed-rate mortgage initially but could end up being more expensive overall.
Variable-rate options include discounted and tracker mortgages, as well as standard variable rate (SVR) mortgages.
Tracker mortgages
A tracker mortgage tracks the Bank of England base rate by a set amount. For example, you might get a tracker mortgage that is set to track at two percentage points above the base rate.
This means when the base rate rises or falls, your interest rate will rise or fall with it at two percentage points. So for example, if the base rate rises to 3%*, you pay interest at 5%.
* for demonstration purposes only, the UK base rate is currently 3.75%
Discounted mortgages
A discounted mortgage gives you a lower interest rate than the lender's standard variable rate (SVR) for a set time or the life of the loan. The lender will charge you a rate that stays a specific amount below their SVR. Because the SVR can change, your monthly payments may go up or down.
Standard variable rate (SVR) mortgages
If you have a fixed, discounted, or tracker mortgage, you will move to your lender's SVR once your initial deal expires. This is the default rate your lender charges. It is usually more expensive than your introductory rate, so your monthly costs will likely go up.
f you don’t want to move onto your lender's SVR after your initial deal ends, you should consider remortgaging to a new deal.
Kirsty Lacey, Mortgage Expert at Mojo Mortgages, said:
“Being on an SVR offers more flexibility than most deals because you usually don't have to pay early repayment charges (ERCs). This can be helpful if you’re planning to move house soon. However, SVRs are typically a lender's most expensive rate.
You can often find other options, like tracker mortgages, that also have no ERCs but offer much better interest rates. A mortgage broker can help you compare these to find the right deal for your specific circumstances.”
Offset mortgages
Offset mortgages allow you to use your savings to reduce the amount of interest you pay on your mortgage. This type of mortgage links your savings account to your mortgage, and the lender only charges you interest on the difference.
For example, if you have a £200,000 mortgage but hold £25,000 in savings, you only pay interest on £175,000.
You can still withdraw your money whenever you need it, but your interest savings will drop if your savings balance goes down.
These mortgages are usually most beneficial if the interest you save on your mortgage is more than the interest you would have earned in a traditional savings account. Keep in mind that your savings must be with the same bank or building society as your lender, and you can choose between fixed or variable rate deals.
What affects your mortgage rate?
Your mortgage rates are based on a variety of factors, such as:
Credit score - Make sure you're consistently paying off any outstanding debt on time to prove to the mortgage lender that you can keep on top of monthly repayments. You can also build up your credit score by avoiding applying for other forms of credit and making sure you've registered to vote.
Deposit amount and loan to value (LTV) ratio - A bigger deposit means a lower LTV ratio, as a result you'll have higher equity in the property which is deemed as lower risk for mortgage lenders. The cheapest interest rates are usually offered around 60% LTV.
Your income and employment - Lenders look at how much you earn and how stable your job is to decide if you can afford the repayments.
The property type - Some lenders charge higher rates or require larger deposits for "non-standard" buildings, such as high-rise flats or homes made of unusual materials.
The mortgage loan term - Choosing to pay your mortgage back over 40 years instead of 25 can sometimes affect the products and rates available to you.
Mortgage repayment types
Capital repayment
A capital repayment mortgage means you pay off the interest payment and a bit of the loan amount you've borrowed each month.
The amount which you owe will get smaller when you make a repayment each month, until eventually you reach the end of your term and become mortgage-free. This means you own your home outright.
Interest-only repayment
With an interest-only mortgage, your monthly payments only cover the interest on the loan, not the debt itself. While this keeps your monthly costs low, you will still owe the full amount you borrowed at the end of the term.
Most residential lenders prefer repayment mortgages, where you pay back both the loan and the interest each month until the debt is cleared. However, interest-only deals are common in other areas:
Buy-to-let: Many landlords choose interest-only to keep business costs down, with lenders focusing on the property's potential rental income.
Retirement interest-only (RIO): Older borrowers can pay just the interest until they pass away, move into long-term care, or sell the home.
Because you aren't paying down the loan, you must have a clear plan to repay the original debt at the end of your mortgage.
Mortgage repayment types
Capital repayment
A capital repayment mortgage means you pay off the interest payment and a bit of the loan amount you've borrowed each month.
The amount which you owe will get smaller when you make a repayment each month, until eventually you reach the end of your term and become mortgage-free. This means you own your home outright.
Interest-only repayment
With an interest-only mortgage, your monthly payments only cover the interest on the loan, not the debt itself. While this keeps your monthly costs low, you will still owe the full amount you borrowed at the end of the term.
Most residential lenders prefer repayment mortgages, where you pay back both the loan and the interest each month until the debt is cleared. However, interest-only deals are common in other areas:
Buy-to-let: Many landlords choose interest-only to keep business costs down, with lenders focusing on the property's potential rental income.
Retirement interest-only (RIO): Older borrowers can pay just the interest until they pass away, move into long-term care, or sell the home.
Because you aren't paying down the loan, you must have a clear plan to repay the original debt at the end of your mortgage.
Mortgage FAQs
What is the best mortgage rate in 2026?
The "best" mortgage rate is the one that fits your unique financial situation and future plans. While mortgage rates saw significant rises in 2022 and 2023, the market in early 2026 has become more stable and competitive.
It’s tempting to simply pick the deal with the lowest interest rate, but that might not be the cheapest option overall. To find true value, you should:
Factor in product fees: Some mortgage deals with very low rates come with high upfront fees that can make the loan more expensive over time.
Check the "Total Cost": Look at the combined cost of the interest and the fees for the entire length of the initial deal.
Look at the LTV: The best mortgage rates are typically reserved for those with a larger deposit (or equity), such as 40% (60% LTV).
Consider the term length: Decide if you want the security of a longer fix or the flexibility of a shorter deal if you think mortgage rates might fall further.
A mortgage broker can explain any additional fees to you to make sure you're getting the right deal for you.
What are the costs involved with getting a mortgage?
When comparing mortgages, it's important to look for the best mortgage rates but don't get caught out by additional mortgage fees that can end up making your mortgage more expensive.
Not all of the following charges will apply to all mortgages, but some of the main costs involved with getting a mortgage include:
Broker fee
- Some mortgage brokers charge for their services, but if you compare mortgage rates with Mojo they offer their expert advice free of charge.
Booking fee
- This is a non-refundable upfront charge that secures your loan when you make a mortgage application.
Arrangement fee
- Also known as a completion fee, this is the amount you pay your lender to set up your mortgage. This can typically cost up to £2000, which you can choose to pay upfront or add to your mortgage. If you decide to add the fee to your mortgage, remember that you'll have to pay interest on it.
Valuation fee
- The lender values your property to ensure it's worth the amount you're borrowing. Some mortgage lenders won't charge a fee, others will, and the cost varies depending on the value of the property.
Solicitor fees
- Is the amount your solicitor charges to handle the legal side of buying the property. This includes services such as transferring title deeds and arranging contracts. The fee can be anywhere from £850 - £1,500.
Find out more about how much it costs to buy a home.
Can I get a mortgage with no deposit?
Yes, it is possible to get a no deposit mortgage but it can be difficult to find a mortgage lender who will offer this.
Also known as a 100% loan to value (LTV) mortgage, you're more likely to get approved for this type of mortgage if you have a high credit score. Some lenders may also insist that you have a guarantor as extra security if you miss any repayments.
How can I save up a deposit?
It can be really hard to save up a house deposit, particularly as a first-time buyer. If you're struggling, consider opening a Lifetime ISA. The government will boost your savings by 25% (you can save a maximum of £4,000 per year) as long as you use the money for your first home or retirement.
There are terms and conditions involved though so do your research before deciding if it's right for you.
If you haven't already, it's also worth setting up a standing order to divert money into savings as soon as you get paid. Plus, it may be worth doing a financial review to see if there are any expenses you could cut back on.
Can I get a mortgage with bad credit?
The best mortgage offers are typically given to borrowers who are seen as low-risk and can prove to the lender that they are responsible with money. That means, having a high credit rating will really help you secure a good mortgage rate.
That's not to say if you have bad credit you can't get a mortgage, you just might not get the best deals.
Is it better to buy or to rent?
Knowing whether you should rent or buy a home depends on your personal situation, there are pros and cons to both.
In terms of monthly payments, renting is typically more expensive but buying has more upfront fees, such as stamp duty and solicitor fees. Also with buying, you'd have to factor in paying for urgent repairs that can put a strain on finances.
But at the end of the day, buying a house means your monthly repayments are going towards the house you own and not a landlord's pocket.
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