Compare mortgage deals

Why apply for a mortgage with L&C?

If you need to take out a mortgage, the huge choice of deals available combined with lots of confusing jargon can be enough to make anyone nervous. After all, this is likely to be one of the biggest financial decisions of your life, so you’ll want to get it right. That’s why it’s a good idea to seek expert help to compare the best UK mortgage rates and find the right deal to suit your individual needs. Here at L&C, the process of getting a mortgage couldn’t be simpler.

• If you’re just getting started, we’ve got lots of useful guides to help you get to grips with mortgages and understand the differences between the various mortgage types.
• We’ll compare 1000s of deals from over 90 lenders to find the deals you qualify for, filtering down your choices by selecting the type of mortgage you want and how long you want the term to be.
• Our online Mortgage Finder has been designed for both desktop and mobile devices, making it possible for you to start your journey whether you’re at home or on the go.
• We’ll ask for essential details about your income and outgoings, along with information such as how much you’re looking to borrow, and we’ll let you know what deals you might qualify for.
• At L&C we have experts on hand to offer advice, completely free of charge. How do we offer advice for free? Like all other brokers, we get a payment from the lender when your mortgage completes. However, unlike other mortgage brokers, we choose not to charge you a fee on top of this. You’ll pay no more applying through us than you would going directly to the lender on the same deal.

Understanding which mortgage is right for you

The right mortgage for you will depend on your individual circumstances.

If you have a small deposit, for example, you may need a mortgage that allows you to borrow as much as 95% of the property value, or you may want to use a Government scheme such as shared ownership to purchase your home.

If you have a larger deposit, then you’ll generally have access to a much wider range of mortgage deals.

Lenders will look at lots of different factors when assessing whether you’re eligible for a mortgage. These include your credit score, as they’ll want evidence you’ve managed any borrowing responsibly in the past.

It’s worth noting that different lenders take different approaches when it comes to who they’ll offer mortgages to, so if you’re not certain which lenders might look favourably on your individual circumstances, we can point you in the right direction.

What types of mortgage deals are available?

There are numerous different mortgage options to choose from, and we’re here to help you choose the right mortgage deal to suit your needs.

Here are some of the main mortgage types:

• Fixed rate mortgages
  A fixed rate mortgage, as the name suggests, has a fixed interest rate for a set term. This term typically varies from two to ten years, although sometimes even longer terms are available. The main benefit of a fixed rate mortgage is that they provide peace of mind that your monthly payments won’t change during the term of the deal, so this type of mortgage usually appeals to those who need budgeting certainty.
• Tracker mortgages
  With a tracker mortgage, the interest rate usually tracks the Bank of England base rate plus a set percentage. If interest rates fall, then homeowners will benefit from cheaper monthly payments, but if they rise, mortgage costs will increase.
• Offset mortgages
  An offset mortgage enables you to offset any savings you have against the amount you owe on your mortgage, reducing the amount of interest you’re charged. So, if you have a £200,000 mortgage and £40,000 in savings, you can offset these savings against your mortgage, meaning you’re only charged on £160,000 of your mortgage. You can still get your hands on your savings whenever you want. Rates on offset mortgages tend to be slightly higher than on standard mortgages.
• Capped mortgages
  A capped rate mortgage will have a variable interest rate, so your payments can go up or down, but it will never exceed a certain ceiling, or cap. This type of mortgage may appeal to you if you think interest rates could have further to fall, but want some protection that there is a limit beyond which your monthly payments can’t rise.
• Discounted mortgages
  A discounted mortgage gives you a discount from the lender’s standard variable rate for a set period of time. Bear in mind that if your lender raises or lowers their standard variable rate, your monthly payments will go up or down too.
• Mortgages if you’ve got a small deposit
• Only having a small deposit to put down needn’t be a barrier to getting a mortgage. There are plenty of lenders offering a range of mortgage deals for those with a 5% deposit. There are also Government schemes such as shared ownership which are designed to help those with smaller deposits get onto the property ladder.

Additional considerations when looking for the right mortgage deal

There are several other things you need to think about when choosing a mortgage.

• Length of mortgage
  How long do you want your mortgage to be? Remember that the shorter the mortgage term you choose, the less interest you will pay overall and the faster you will pay off what you owe, although your monthly payments will be more expensive than if you opt for a longer term. When remortgaging, make sure you factor in how long you have already had your mortgage and reduce your term by that length of time. For example, if you originally took out a 25-year mortgage and have just come to the end of a five-year fixed rate, when you remortgage you should do so over a 20-year term if you can, as you’ve already been paying off your mortgage for five years.
• Deal term
  If you are signing up for a fixed, tracker, capped or discounted mortgage deal, think about how long you want to tie yourself in for. Mortgage deals will usually impose early repayment charges (ERCs) if you leave them before they finish, so if you think a move could be on the cards in a couple of years it probably makes more sense to lock into a two-year deal rather than a five-year one.
  Although most mortgage deals are portable, you will still have to go through the application process again to move your mortgage across to a new property, and if the amount you are borrowing is increasing, you may have to accept that part of your mortgage will be on a different rate.
• Repayment or interest-only
  When you choose a repayment mortgage, your monthly payments go towards paying off the interest you owe and the capital you have borrowed. If you choose an interest-only mortgage, however, you only pay off the interest you owe each month, and none of the capital. Instead, you will need to have a plan in place to repay the capital in full at the end of the mortgage term.
  If you are set on going for an interest-only mortgage, you will usually only be able to get one if you have a large deposit to put down if you are buying, or if you have a significant amount of equity in your property if you are remortgaging.

Start your search online for a mortgage

Finding a mortgage and applying with L&C is a simple four-step process.

Step 1 See how much you could borrow and what your monthly payments are likely to cost using our L&C calculators or the online Mortgage Finder.

Step 2 Answer a few more questions online, or speak to an adviser to find out which deals you are likely to qualify for and get expert advice on the best deal for you.

Step 3 Apply easily for your mortgage online – we’ll pre-populate the application form with the information you’ve given us already, so there’s no need to tell us twice.

Step 4 Once you’ve submitted your application you can keep track of the whole process online 24/7. Our experts are on hand to offer free advice if you need help or support at any stage, and we’ll appoint a dedicated case manager who’ll do all the legwork for you.