Choosing a mortgage is one of the most significant financial decisions you'll make. A small difference in interest rate over a 25-year term represents tens of thousands of pounds.
Fixed vs variable
Fixed-rate mortgages give payment certainty for 2, 3 or 5 years — useful for budgeting and protection against rate rises. Variable rates (tracker or SVR) can go up or down with the Bank of England base rate.
What to compare
- Initial rate (the teaser rate for the fixed/tracker period)
- Reversion rate (what you pay when the deal ends — usually higher)
- Arrangement fee (can be £999–£1,999; worth paying if the rate saving outweighs it)
- Early repayment charge (ERC) — a penalty for overpaying or leaving early
- APRC (Annual Percentage Rate of Charge) — includes fees; best for whole-of-term comparison
Use a broker
A whole-of-market mortgage broker accesses deals not available directly and can advise based on your circumstances. Many offer a free service (paid by lender commission). Check brokers on unbiased.co.uk.
This is general information, not financial advice.