What are the UK mortgage rates today?

When lenders determine mortgage rates they are usually making a best guess about what will happen with the UK base rate and guided by the movement of swap rates - the rate at which banks borrow money.

However, when the base rate changes, while tracker mortgages are directly impacted, fixed-rate mortgages won't necessarily be affected. This is because lenders tend to plan changes to their rates ahead of time when they think that the Bank of England are planning to adjust the base rate of interest.

Of course, there is also a business element to lender decisions, which means that they will also be trying to price their deals competitively in the market to attract more customers.

A good mortgage interest rate depends on market conditions, along with the size of your deposit and financial circumstances. It's a good idea to take this into consideration when looking at mortgage rate comparison, as not all deals will necessarily be available to you.

If you have a large deposit (ideally 40% or more) and excellent credit history, you should be able to get some of the lowest rates available. However, if have a small deposit and your credit rating isn't so strong, you'll likely find you have to pay a more expensive mortgage rate.

This is because lenders tend to base the rate on how much risk they're taking on by letting you borrow from them. The higher the deposit you put down, the lower the LTV ratio and less risk they're taking on. Similarly, if you have a great credit history, lenders are likely to see you as less of a risk. A mortgage broker can help you to compare mortgage rates and find the the most suitable for your circumstances.

It can be tough to compare mortgage rates as theoretically, they can change at any time based on a wide range of economic factors. If you're on a fixed-rate deal, you'll be protected from these changes until your deal ends. However, it's possible for rates to significantly rise or fall during your deal period, especially if it's a number of years.

Lenders tend to be guided by changes in the Bank of England base rate, and swap rates, however, these aren't the only reasons they might choose to raise or lower rates. The Bank of England generally announces base rate changes every 6 weeks, but can also arrange emergency meetings where necessary.

One of the most commonly asked question relating to mortgage rates is when they will come down. However, while average rates are often quoted in the press, it's important to understand that every lender sets their rates based upon their own best guesses. This is why in the same week we can see some lenders push their rates up and others cut them.

There are many factors that come into play when lenders determine mortgage rates, with the base rate and swap rates being major considerations. However, ultimately, even the most skilled financial analysts can only venture an educated guess of when mortgage rates are likely to fall across the board.

The best way to stay up to date with current average rates is to bookmark this page, and always ensure you speak to a mortgage broker who can help you find the best mortgage deals available.

It really depends on your circumstances. If you're already on, or about to fall onto a high SVR (standard variable rate), then you'll need to consider whether it's worth paying more interest while you wait to see whether rates fall further.

However, keep in mind that the market has seen significant volatility in recent years, and just because rates have fallen from their highest levels in recent history, the base rate remains high for the time being.

If you plan to move soon, then it may be worth staying on an SVR for a short time, as there are no ERCs to pay when you do look at a new mortgage deal. However, it's a good idea to take guidance from a broker on your mortgage comparison if you're uncertain on your best move.

There is no one lender that offers the 'best mortgage rates' across the board. While lenders tend to publish rates on some of their deals, it's worth keeping in mind that each deal will have its own set of criteria to meet in order to achieve that rate.

A significant factor will be deposit size, as rates tend to be set based on the loan to value (LTV) of your mortgage loan. Generally, the more deposit you have, the better UK mortgage rates available to you. However, a whole host of other factors come into play, such as your credit history, employment and even the property you plan to buy.

For this reason, it's a good idea to search the market to find those lenders with the best rate whose criteria you most closely match. A mortgage broker, like our broker partner, Mojo mortgages, can help you do this efficiently and reduce the possibility of missing out on a deal that suits you better.

It is possible to find 30 year, and even some longer fixed-rate mortgage deals than that in the UK these days. But this is typically far more common in the USA and Europe, as our longer-term fixed rate deals still tend to be fairly pricey, and hard to find.

However, there are multiple pros and cons to consider when it comes to locking in a mortgage deal for a very long time. It's a good idea to look at whether a long term fixed-rate mortgage is the right option for you, before tying in for 30 years.

The Bank of England base rate is used by the organisation to help manage inflation. When inflation is low and they want to encourage borrowing and spending, the Bank of England will lower the base rate, as this make loans more affordable.

When they want to reduce inflation, the Bank of England will increase the base rate. The idea is that this will discourage spending and encourage saving. With mortgages, it depends on what kind of deal you have as to how base rate changes will affect your rate.

You can find out more in our guide to the Bank of England base rate.

Dutch-style mortgages are named as such based on similar mortgage products on the continent. The difference is that they provide longer fixed-term deals with interest rates that decline automatically as you pay the mortgage off.

This is intended to save time and money by reducing the need to regularly remortgage at the end of a fixed term. Not many UK lenders currently offer this type of product, however, if popular, there is always the potential that others will follow suit.

If you're buying your first home, one of the most important factors is your personal financial circumstances. So while the market conditions, in terms of mortgage rates and house prices should also be a factor, it's a good idea to ensure you have a good deposit, and strong affordability regardless.

You can monitor house prices via Zoopla's monthly house price index, and keep up with what's going on in the UK mortgage world on our mortgage news page. However, ultimately, even in a peak buyers market, ensure you're in the best personal position too.

The mortgage interest rate is the amount you'll pay on top of what you borrow. This will be expressed as a percentage. The APRC, on the other hand, demonstrates the total cost payable throughout the full mortgage term, assuming it stays the same, as well as associated costs, such as fees. This is also expressed as a percentage and is intended to help borrowers compare deals with and without fees against each other.

Keep in mind that the APRC is only relevant if you never intend to remortgage, as it's calculated on the basis that you keep the same deal for the full duration of your mortgage.