Once you know what type of mortgage you want and for how long, you can start looking at the rates being offered. If you look at the best buy tables in newspapers or via comparison websites then you’ll see the cheapest rates available, but to really understand what is available to you and your personal circumstances you should seek the advice of a specialist broker you can analyse the market and your suitability.
The rates you’re offered will depend on how much of a deposit you have; the very best rates usually require a deposit or equity of at least 25% and often 40%. However, there are some lenders who will offer competitive rates for buyers with just 5% saved or even buyers needing a 100% mortgage.
One very important consideration is the overall cost of the mortgage and not just the interest rate. For example, a product might appear at the top of the best buy charts with a fantastically low interest rate but a very high application fee. Over the period of the mortgage, that fee could make the loan more expensive than a mortgage with a higher interest rate but a lower fee.
It’s really important to look at how much your mortgage will cost you over the term, so that you know if it really is a best buy for you or not.