Trying to find the best mortgage lenders can feel like looking for a needle in a haystack. The sheer volume of online information can be daunting. Where do you start, what should you take to heart, and what should you discard?

Since your time is valuable, we’ve done the groundwork for you by identifying the best mortgage lender research and putting it together in one place. So, no more time wasting; get ready to dive straight into the good stuff.

So, if you’re in the market for a mortgage, have a look below to find out which mortgage lender is the best one for you.

How Are the Best UK Mortgage Lenders Chosen?

The best UK mortgage lenders are determined annually by authoritative UK online publications by analysing mortgage deals and surveying data from thousands of mortgage customers. 

The Top Mortgage Lenders in the UK

To determine the top UK mortgage lenders, Which?¹ combined extensive customer feedback with an in-depth product analysis over 4 weeks in 2022.

These 7 banks came up as the UK’s cheapest mortgage lenders: 

• First Direct
• Royal Bank of Scotland
• NatWest
• Halifax
• HSBC
• Virgin Money
• Barclays

First Direct

First Direct has been voted as the best mortgage lender in multiple surveys. Its reputation as the most trusted mortgage lender has been cemented over the past 20² years. 

It consistently features at the top of customer lists, not only for mortgages, but also as a trusted bank³. 

At the time of the survey⁴, First Direct offered 34 mortgages, with the majority being fixed-rate mortgages over 2, 5 or 10 years.

First Direct, which forms part of the HSBC group, is a direct online service and isn’t accessible through a mortgage broker. 

Royal Bank of Scotland

The Royal Bank of Scotland (RBS) forms part of the NatWest banking group. According to Which?’s survey⁵, RBS only offered fixed-rate mortgages, with a total of 72 different ones over 2 or 5 years. 

RBS mortgages are only available directly and not through brokers.

NatWest

Since NatWest forms part of RBS, both banks offer similar mortgage deals. Interestingly, the NatWest brand had slightly higher customer satisfaction scores⁶.

Like RBS, NatWest mortgages are only available directly and can’t be accessed by mortgage brokers.

Halifax

Halifax is one of the UK’s biggest mortgage lenders and forms part of Lloyds Banking Group. 

During Which?’s survey⁷ Halifax had 141 all fixed-rate mortgages on offer, ranging over 2, 3, 5 or 10 years.

These mortgages are only available directly from Halifax and not through a broker.

HSBC

HSBC is one of the UK’s largest mortgage lenders and owns both First Direct and M&S Bank. 

At the time of Which?’s survey⁸, HSBC had 92, mostly fixed-rate mortgages on offer with a choice between 2 or 5 years.

Unlike many of their counterparts, HSBC offers mortgages directly and also through mortgage brokers.

Virgin Money

Virgin Money incorporated both Yorkshire Bank and Clydesdale Bank into their business in 2018. 

According to Which?’s survey⁹, Virgin Money offered 65 all fixed-rate mortgages over 2, 3, 5, 7, 10 or 15 years.

Virgin Money mortgages are accessible directly or through a mortgage broker. 

Barclays

With over 10% market share¹⁰, Barclays is one of the largest mortgage lenders in the country with 39 mortgage deals¹¹ on offer. 

Most of these are fixed-rate mortgages for 2, 5, 7 or 10 years. 

Barclays also has a small selection of tracker mortgages with an initial term of 2 years before it reverts to Barclays’ standard variable rate. 

Barclays mortgages are available directly and through mortgage brokers.

Which Mortgage Lender Offers the Best Rates?

The quickest way to find the mortgage lender that offers the best rate is to use a mortgage comparison site like MoneySuperMarket¹². 

The rate you qualify for would be dependent on factors such as the size of your deposit, the type of mortgage you need and the amount you qualify to borrow, amongst others. 

By providing the necessary information, you’ll be able to find the best rate for the particular mortgage you're looking for. 

Which Mortgage Lender Is the Best for What?

Money to the Masses¹³ conducted a detailed analysis in 2022 by comparing the mortgage deals of numerous mortgage lenders. 

As well as looking at each competitor’s offerings as a whole, it also compared specific types of mortgage products to identify the leaders in specific mortgage categories.  

Best Mortgage Lender if You Are a First-Time Buyer

Nationwide¹⁴ came up tops as being the best mortgage lender for first-time buyers. 

Applicants favour its range of 95% loan-to-value mortgages, which means they need lower deposits to qualify for a mortgage compared to most of its competitors. 

Also, each first-time buyer receives £500 cashback once they’ve completed their purchase. 

Nationwide considers any applicant who hasn’t had a mortgage for at least 3 years, as a first-time buyer¹⁵, which enables more applicants to take advantage of these special offers. 

However, Nationwide’s biggest selling point is that it allows first-time buyers to borrow up to 5.5¹⁶ times income multiples of their annual salaries with fixed rates locked in for between 5 and 10 years. 

Best Mortgage Lender if You Are Self-Employed 

The best mortgage lenders, if you are self-employed, are Skipton Building Society¹⁷ and Aldermore Bank. 

Finding a mortgage can be tricky for the self-employed. 

Skipton Building Society makes it easier by offering mortgages to a range of self-employed applicants, such as sole traders, landlords, people playing professional sports and those who are on zero-hour contracts. 

Self-employed people could qualify¹⁸ for competitive fixed-rate mortgages of up to 5 times their annual income, for up to 95% loan-to-value and a borrowing limit of up to £600k.    

Aldermore Bank¹⁹ counts itself as a specialist provider of self-employed mortgages. It focuses on sole traders and limited companies and doesn't have a cap on loan-to-value. 

Aldermore Bank offers mortgages of up to 5.5 times the income of sole and joint applicants with a minimum annual income of at least £60k.

Best Mortgage Lender if You Have a Bad Credit Rating

Kensington Mortgages²⁰ is the best mortgage lender if you have a bad credit rating. 

This is because Kensington Mortgages specialises²¹ in providing mortgages for applicants who don’t meet the criteria needed to obtain a mortgage from a mainstream mortgage lender. 

Kensington Mortgages is 1 of only 2 UK mortgage lenders that offer fixed-rate mortgages over 40 years²². 

It also has specialised mortgage deals aimed at key workers, such as teachers and emergency personnel.

Furthermore, it offers cashback to mortgage clients who buy or renovate more energy-efficient homes. 

Another big plus for Kensington Mortgages is that it gives up to 6 times²³ income multiples for professionals, which include doctors, chartered accountants and lawyers. 

Best Mortgage Lender for Income Multiples

Habito²⁴ is the best mortgage lender for income multiples. 

Before becoming a mortgage lender, Habito used to be a mortgage broker and now offers both services. 

Its Habito One range provides borrowers with 40-year fixed mortgage deals with up to 7 income multiples²⁵. 

These higher income multiples are specifically offered to applicants in certain professions, such as nurses, paramedics, police officers, doctors, accountants and barristers who earn annual salaries of at least £25k. 

Borrowers working in other professions are required to earn at least £75 per annum. 

Best Mortgage Lender for Buy-To-Let 

Accord Mortgages²⁶ is frequently counted as the best mortgage lender for buy-to-let mortgages.

It forms part of the Yorkshire Building Society and acts as its mortgage broker. 

It’s seen as a great choice for buy-to-let mortgages thanks to its low rates and flexible approach²⁷ when considering mortgage applications. 

Accord Mortgages looks at each applicant’s circumstances individually when applying its lending criteria. 

How Did We Choose the Best Mortgage Lenders?

We identified the best mortgage lenders by studying the most recent online research conducted by the most trusted sources in the financial services industry.

Looking at What the Experts Are Saying

The findings were based on a combination of thousands of customer satisfaction surveys and expert mortgage analysis. 

In doing so, we’ve identified the following experts as leaders in the field of mortgage lenders:

• Which?²⁸ 
• The Times Money Mentor²⁹
• Money Saving Expert³⁰
• Money to the Masses³¹
• MoneySuperMarket³²

How to Choose the Best Mortgage Lender for You

To choose the best mortgage for you, it’s important to first look at your circumstances³³ and decide what type of mortgage³⁴ you need.

Firstly, to determine what type of borrower you are, ask yourself these questions:

• Are you going to live on the property?
• Do you want to rent out the property?
• Are you a first-time buyer?
• Are you moving?
• Are you remortgaging?
• What is your annual income?
• How big is your deposit?
• Are you a full-time employee?
• Are you self-employed?
• How old are you?
• How long do you want to pay off the mortgage?
• What is your credit score?

By answering these questions, you will have a better idea of the criteria you will meet for different mortgage lenders.

What Type of Mortgage Do You Need?

The type of mortgage you need will depend on your financial circumstances, and whether you prefer a fixed-rate deal³⁵ or a tracker mortgage³⁶.

A fixed-rate mortgage³⁷ will suit you if you are someone who wants to be certain what your exact, monthly payment is going to be for the duration of your fixed-term mortgage. 

However, if you prefer more flexibility and think that interest rates might be lowered, a tracker mortgage³⁸ would be a better fit. 

Check Your Credit Rating

It’s important to check your credit rating³⁹ as this will determine the amount and type of mortgage you qualify for. 

If you have missed payments in the past or faced bankruptcy, it would have impacted your credit score negatively. 

You can check your credit score with the 3 main credit agencies: Experian⁴⁰, Equifax⁴¹ and TransUnion⁴².

So if you have a bad credit rating, you could still be able to procure a mortgage, but it would probably cost you more and you would need a bigger deposit. 

This is because you won’t be able to take out a mortgage from a mainstream financial institution and would need to use a specialist mortgage lender. 

Compare Different Mortgage Lenders

You can compare different mortgage lenders by using online comparison sites like MoneySuperMarket⁴³, which compare thousands of mortgage deals by covering the bulk of the mortgage market. 

Use Different Online Calculators

You can also use different online calculators for most of the large mortgage lenders like Barclays⁴⁴, Nationwide⁴⁵, Halifax⁴⁶, RBS⁴⁷, Lloyds⁴⁸ etc.

What to Look for When Choosing a Mortgage Lender

When choosing a mortgage lender it is essential to look at interest rates and fees, but also to keep your circumstances in mind when picking a mortgage lender. 

Therefore make sure you compare different mortgages and consider using a mortgage broker if you need more advice. 

Compare Rates and Fees

Compare mortgage interest rates by doing a quick online search for the lowest mortgage interest rates for the type of mortgage you are looking for.

Don’t just accept the first deal your bank offers you. 

Money Saving Expert’s tool, Mortgage Best Buys⁴⁹ is a good place to start. It includes all direct mortgage deals that are also available to brokers. 

When shopping⁵⁰ around for fixed-rate mortgages, check what the rate reverts to once the fixed term has ended.  

What Is Your Credit Rating?

Your credit rating⁵¹ will determine whether you qualify for a mortgage with a regular mortgage lender. 

If you have a bad credit score, you would only be able to get a mortgage from a specialist mortgage lender. 

Consider Using a Mortgage Broker 

If you need in-depth advice from a specialist who knows the ever-changing mortgage market, it would be useful to use a mortgage broker. 

Even though you can contact many mortgage lenders directly, combing through all the available information can be very time-consuming. 

Also, a good mortgage broker would have access to exclusive mortgage deals, which could help to save you money. 

Habito⁵² provides an online free, independent mortgage advice service across the whole spectrum of mortgage lenders. 

If you prefer to speak to a mortgage broker in person, check out VouchedFor⁵³ to find a mortgage broker near you. 

Common Questions

In Conclusion

In the UK you’re spoilt for choice when it comes to mortgage lenders. The downside of this is that you can get lost in a sea of information. 

First, decide what are the most important things you’re looking for in a mortgage. Are you chasing the lowest interest rate, or is good customer service more important to you? 

If you’re a first-time buyer, it will be helpful to consult with a mortgage broker.

The bottom line is mortgages aren’t a one-size-fits-all business. There are many good ones, but the best mortgage lender for you would be the one that meets your individual needs.