This page provides an overview of the UK mortgage market, providers, recent industry news, and gives some advice and tips as well as sources for further support.
Not all households have a mortgage, but for those that do it is likely to be their biggest outgoing payment each month. People have enjoyed very low interest rates in recent history, but with rising inflation and a mounting cost-of-living crisis, it’s more important than ever to keep on top of mortgage payments.
<aside> 🧮 Worried about rising interest rates? Use our free Refix calculator to find out whether it makes sense to pay early charges and refinance today
Contents of this page
The UK has around 340 mortgage lenders and administrators including banks, building societies, credit unions and specialists, jointly regulated by the Bank of England Prudential Regulation Authority (PRA) and the Financial Conduct Authority (FCA). We’ve included some of the most well known here.
They offer a wide variety of mortgage products, but the most common are fixed and variable rate mortgages.
<aside> 🛠️ For the most up-to-date practical advice, read our guide to Saving money on mortgages.
<aside> <img src="https://s3-us-west-2.amazonaws.com/secure.notion-static.com/9ae4fcda-a6c4-4f18-83fd-b67c9dc3e0b5/arch-yellow.png" alt="https://s3-us-west-2.amazonaws.com/secure.notion-static.com/9ae4fcda-a6c4-4f18-83fd-b67c9dc3e0b5/arch-yellow.png" width="40px" /> Normally the best way to minimise your mortgage spend is to be on a fixed rate deal. These are generally much lower than standard variable rates and won’t fluctuate even if the base rate changes.
Most providers automatically move you to a standard variable rate after your fixed rate deal ends, which can be an expensive surprise if you’re not paying attention. It’s almost always better to move to a new fixed rate deal when your current one finishes, as it usually means lower monthly payments which can help you cover higher costs elsewhere.
<aside> 💡 There are some exceptions If you only have a small balance remaining on your mortgage you may do better remaining on your lender’s standard variable rate as product or legal fees could potentially wipe out any savings.
If you need to reduce monthly outgoings and have some savings built up then an offset mortgage could help. The savings you hold are offset against your mortgage borrowing, meaning you only pay interest on the difference. Not all providers offer them though, and there may be restrictions on your access to your savings.