Buying a home should be a joyful experience, but a stressful mortgage application process or unexpected costs could easily spoil it. To help you avoid this, we've reviewed and ranked some of the UK's best banks for mortgages.
This guide will help you find the service that fits your requirements, whether your priority is excellent customer support, cashback, or something else.
HSBC came out on top thanks to its huge variety of products and competitive interest rates. Discover below which other banks made the cut and what their pros and cons are.
Best Banks for Mortgages – Our Recommendation
| Name | Score | Visit | Disclaimer | |
|---|---|---|---|---|
 | 1HSBC | 6.8 | Visitwww.hsbc.com/ | |
 | 7.5 | Visitsantander.co.uk | ||
 | 7.0 | Visitwww.firstdirect.com/ |
Best Banks for Mortgages at a Glance
Best overall – HSBC
Best for interest-only mortgage – Santander
Best for remortgaging – Royal Bank of Scotland
Best for first-time buyers – Nationwide
Best for customer service and online access – First Direct
Best for buy-to-let mortgages – Halifax
Best for fixed rate mortgage – NatWest
Top 7 Banks for Mortgages Reviewed and Compared
Find below the latest reviews of the top mortgage lenders in the UK. These reviews break down what each bank has to offer and compare their available offerings with those of other banks.
The sheer variety of offerings, along with attractive terms, make HSBC one of the best mortgage lenders available in the UK.
The bank lends to virtually all kinds of mortgage seekers including first-time buyers, movers, and those wanting to remortgage or buy to let. You'll be able to choose from options such as fixed-rate, tracker, and standard variable rate mortgages. And if you're unsure what you need, you can always talk to HSBC's mortgage advisors for support. Deals are available at 60%, 70%, 75%, 80%, 85%, 90%, and 95% loan-to-value.
HSBC has one of the best interest rates on 90% mortgages, with an initial rate of 5.39%, revert rate of 6.99%, and an upfront fee of £999 on the two-year fixed standard. Alternatively, there's an initial rate of 4.89% on the five-year fixed standard. The 95% mortgage rate is also one of the best, offering a 5.39% for the first five years, a 6.99% revert rate, and no upfront fee!
HSBC also allows you to make overpayments of up to 10% of your usual mortgage payment, and there is no early repayment charge for tracker mortgages. You can use HSBC's handy online tools to work out how much you could borrow and how much your repayments would be.
- Competitive interest rates
- Offers favourable mortgages for the self-employed
- No booking fee for some mortgages
- Early repayment charge for fixed-rate mortgages
- Customer service is not always optimum
- Upfront fees apply to fixed standard rates except the 95% mortgage rate
Santander made it onto our list of top mortgage lenders in the UK and doubles as our best pick for interest-only mortgages. It continues to offer this type of mortgage, which has become less common.
An interest-only mortgage, like those Santander offers, lets you make lower monthly repayments during the mortgage term. Santander will help customers put a repayment plan in place to repay the full loan amount at the end of the mortgage term.
A lot of Santander’s mortgage products offer cashback worth £500 upon completion if customers meet the appropriate criteria. The bank's interest rates are particularly competitive on the lower end of the loan-to-value ratio spectrum. This makes Santander an ideal lender for those who want to borrow a smaller percentage of the purchase price.
Santander may lend you up to 4.45 or 5.5 times your annual salary for fixed mortgages. The length of the term for the initial fixed rate would depend on the loan-to-value ratio you are borrowing, which is available at 60%, 70%, 75%, 85%, 90%, and 95%. Overpayment of up to 10% of your yearly mortgage balance is also allowed.
- Friendly rates that are favourable for self-employed borrowers
- No product fee on some mortgages, and the fee for other mortgages will be refunded if you cancel the application
- £500 cashback on selected mortgages for first time buyers
- Interest-only mortgage plans are available
- Arrangement fees apply on all rates
- Santander is not the most suitable lender for high loan-to-value ratios
- Your repayment vehicle must be strong to be considered for an interest-only mortgage. Other strict eligibility criteria also apply
- Satander’s customer service is not optimum
The Royal Bank of Scotland (RBS) offers a range of mortgages, with loan-to-value ratios as high as 95%, helping more people get their foot on the property ladder.
You can manage your mortgage through the online portal, while certain mortgages come with perks such as £500 cashback, legal fees covered, and a free valuation.
There are mortgages to suit a variety of people, from first-time buyers to movers. There are even tools and guidance specifically designed to help people apply for buy-to-let mortgages. Where RBS really excels, though, is remortgaging.
Existing customers can use RBS' online platform to see what deals are on offer and apply for additional borrowing. People who remortgage to RBS from another lender will have their legal and valuation fees paid by RBS. What's more, those with energy-efficient homes could even qualify for a Green Remortgage, which is a discounted two-year or five-year fixed-rate mortgage.
- £500 cashback available on some mortgages
- Discounts available for energy-efficient homes
- Overpayment allowance of 20%
- Legal and valuation fees are covered, and there is no product fee on select mortgages
- Customer service is poor
- Arrangement and security fees are charged
- The interest-only mortgage is not available to every type of mortgage buyer
- RBS physical branches are not available in some parts of the UK
Nationwide is hands down one of the best mortgage lenders in the UK and also the best for first-time buyers. Every first-time buyer gets £500 cashback upon completion of their purchase and they can also borrow as much as 95% of the purchase cost.
The bank even has a special Helping Hand mortgage for those who aren't able to borrow enough to afford their first home. With this scheme, customers could borrow up to 20% more when they take out a 5 or 10 year fixed-rate mortgage.
Nationwide offers a range of fixed-rate and tracker mortgages, and the tracker mortgages come with no overpayment limits or early repayment charges. Taking out a mortgage with Nationwide will entitle you to the standard Nationwide member benefits, such as profit sharing, member-only products, and the ability to switch to a new mortgage deal with rates as good as or better than those offered to new customers.
Also, members who buy an energy-efficient home get a Green Reward of up to £500 cashback. There is even a Green Additional Borrowing mortgage with 0% interest that can be used to fund energy-efficient home improvements.
- £500 cashback for first-time buyers upon completion of purchase
- Excellent online banking and customer service
- Excellent deals on high loan-to-value rates
- Fast application submission to mortgage approval time
- Upfront charges apply
- Some of the best features will not apply to you if you are not a first-time buyer according to Nationwide’s terms
- Helping Hand mortgages aren't available for the self-employed
- Not favourable for those with bad credit scores
First Direct shines when it comes to keeping customers satisfied. The lender has an award-winning customer service team available seven days a week, and you can apply over the phone or online. First Direct has received an excellent rating on Trustpilot and swiftly responds to all reviews.
The interest rates charged by First Direct are pretty competitive. The non-Fee Saver mortgages have upfront fees, but these only come to £490, which is about half what most other banks charge in mortgage fees.
One other area where First Direct particularly stands out is its unlimited overpayments. Most lenders will cap overpayments at 10%. With First Direct, though, once your fixed-rate period has ended, you can overpay as much as you like with no Early Repayment Charge.
- Award-winning customer service
- Significantly lower fees than competitors
- Unlimited overpayments with no Early Repayment Charge
- An agreement in principle from First Direct will last 6 months
- No in-branch banking option is available
- Fewer mortgage products than competitors
- Not favourable for bad credit scores
- Mortgage approval time could be delayed
Two things stand out about Halifax mortgage offerings: the competitive interest rates and the excellent buy-to-let mortgage products that make the bank a great choice for landlords and other commercial mortgage buyers.
There is no product fee for Halifax's buy-to-let mortgages or remortgages, and there's no Early Repayment Charge once the fixed-rate period has ended. You'll need to deposit at least 30% of the property value, but you can borrow up to £1 million.
Halifax is also an attractive option for first-time buyers. They can apply online and be guided through the process by a mortgage and protection adviser. Halifax also supports a variety of government-backed schemes to help first-time buyers. There's even £250 cashback for those buying an energy-efficient home, and a monthly prize draw in which winners have their mortgage paid off.
- No product fees on buy-to-let mortgages
- It has one of the fastest mortgage approval process at 15 days
- £250 cashback when purchasing an energy-efficient home
- Monthly mortgage prize draw
- Strict eligibility requirements apply to qualify for Halifax's buy-to-let mortgages
- Buy-to-let mortgage offerings do not apply to certain kinds of properties
- Not favourable for those with bad credit scores
- High upfront fees apply to some mortgage products
Established in 1968, Natwest is one of the foremost banks and top mortgage lenders in the UK. It has a good range of mortgage offerings, most of which are fixed rates, including Green Mortgages. Green mortgages are some of NatWest’s special mortgage products for residential properties. It offers borrowers reduced rates for properties that are energy efficient and have an EPC rating of A or B.
NatWest’s fixed-rate mortgages are excellent and range from 60% to 95% loan-to-value ratios. Some may even let you earn cashback of up to £500. As well as fixed-rate mortgages, NatWest offers some tracker mortgages, and some mortgages have the option of an interest-only repayment plan.
Some of NatWest's mortgages come with free legal and valuation. The main downside is that the product fee can be higher than other lenders at up to £1,495. However, the fees are lower for existing customers.
- Lower rates available for Green Mortgages
- Up to £500 cashback available
- Free legal and valuation for certain mortgages
- Lower fees for existing customers
- NatWest doesn't currently offer buy-to-let mortgages
- Product fee can be higher than competitors
- More limited product offering than some lenders
How Do We Rate and Review Mortgage Providers?
We have surveyed dozens of banks and mortgage lenders in the UK to select the top mortgage lenders we'd recommend. Besides the popularity and establishment of the banks we have selected, here are important factors we also considered:
Interest Rates: One of the primary factors we considered is the interest rates applicable to each bank's mortgage offering. This also depends on other factors like loan-to-value ratio and mortgage term length. We compared different interest rates and selected banks with the fairest rates.
Product Offerings: The banks we have selected offer dozens of different mortgage products or even hundreds. Whether you want to buy your first home, remortgage, or buy to let, these banks offer plenty of options, so you can choose the one that best meets your needs.
Unique Features: Beyond the interest rates and types of mortgages offered, we selected banks with special features such as cashback and first-time buyer deals.
Customer Service: We looked for lenders with excellent ratings and satisfactory reviews from customers irrespective of what offerings they may have. First Direct, for example, consistently ranks among the best online banks in the UK and receives positive reviews for its mortgage services.
Mortgage Approval Time: A fast and smooth application process can take the stress out of getting a mortgage. Banks generally have reasonably fast approval times, and our picks could see you get approved in a couple of weeks.
Other features we also considered include mortgage eligibility requirements, loan-to-value ratios, and fees.
How Do I Choose a Bank for a Mortgage?
There are several crucial factors to consider when choosing a bank for your mortgage – from the kind of products they offer to the reputation of the firm. Let’s start with basics to understand how important these variables are.
How do mortgages work?
Since buying a house usually costs a lot of money, most people can't pay for it all at once. So, they get a mortgage to cover the cost.
A mortgage is a kind of loan you receive from a bank or lender in order to buy a home. The bank covers the cost of the property by sending you the money you need to make the purchase while you then begin to pay back the bank in monthly installments. You'll need to pay interest on top of the amount you borrowed, and there may be fees for the service.
When you get a mortgage, the bank or mortgage provider lends you the money you need to buy the house or sends it directly to the property seller. In return, you promise to pay back the loan over a certain period of time, known as the mortgage term.
This can range from 2 years to as high as 30 to 40 years. You make monthly repayments, which include a part of the loan amount plus interest. If you have an interest-only mortgage plan, though, you only need to pay the interest in monthly installments, and then pay back the loan amount at the end of your mortgage term.
There are different types of mortgages and you have to ensure you choose one that not only offers a great deal but is also most ideal for your situation and the type of home you're purchasing. The most important factors to consider when choosing a bank for a mortgage include the following:
Interest rates
The interest is an extra amount that the bank charges you for lending you the money. It's how banks make money from mortgages. It’s usually a percentage of the loan amount, and it can vary depending on different factors like the current economy and your credit history. As you make your monthly mortgage payments, you gradually pay off the loan and build equity in the house until you get to fully own the house once your mortgage payment is complete.
The interest rate is one of the most important features of any mortgage plan. Different lenders will have different rates but this should fall within a certain average range when you compare the offering to that of other lenders. Lower interest rates imply lower monthly repayments and less overall cost over the life of the mortgage.
Some conditions can make a mortgage interest rate increase or decrease significantly. For example, banks tend to charge higher interest rates for higher loan-to-value ratios.
Loan options and programs
Different banks may offer a variety of loan options and programs. They might have different terms, such as fixed-rate or adjustable-rate mortgages, different loan durations, or special programs for first-time homebuyers, low-income individuals, foreigners, veterans, or certain kinds of employees.
Consider your financial situation, your long-term goals, and what unique situation you are in to determine which loan options and programs align best with your needs. For example, some of the banks in this guide have green mortgage schemes that offer favourable terms to buyers of energy-efficient properties.
Banks will also likely support government-backed schemes that could help people afford homes. These could include the following:
Shared ownership
First Homes
Help to Buy: ISA
Help to Buy: equity loan
Forces help to buy
Mortgage Guarantee
Right to buy
Eligibility requirements
Each bank will have its own set of eligibility requirements for granting a mortgage. These requirements can include factors such as credit score, income level, employment history, debt-to-income ratio, or even having a basic bank account with them before applying for a mortgage.
It is important to understand and evaluate the eligibility criteria of different banks to determine which ones you are likely to qualify for. Usually, can apply for an agreement in principle online. This involves providing your details so the bank can tell you whether you would qualify for a mortgage. There's no commitment to get a mortgage from the bank if they do grant an AiP, and it doesn't hurt your credit score to check.
Customer service
Getting a mortgage is a major life decision and can potentially be stressful. Much of the stress can be removed, however, if you can find a bank that is responsive, helpful, and provides clear communication throughout the mortgage process.
Consider the bank's reputation for customer service by reading reviews or talking to people who have used their services before. The best banks will have multiple options for contacting them, and a support team that is available much of the time and provides quick resolutions.
Reputation and financial stability
This is another important factor to consider. You want to choose a bank that has a solid reputation in the industry and is financially stable. If the bank goes bust, your debt will be bought by another lender, and it is possible that the terms could change.
A reputable bank is more likely to provide reliable and trustworthy services. You can research a bank's reputation by looking at online reviews, ratings, and their history in the industry. Financial stability ensures that the bank will be able to support your mortgage and provide the necessary services throughout its term.
Which Types of Mortgages Do Banks Offer in the UK?
There are different types of mortgages offered by banks. All of them follow the same principle of helping you carry the costs of paying for your home so you don't have to pay for everything at once. You'll pay fees and interest for the lender's service.
The unique features each mortgage type offers are what make each different. The most common mortgage types offered are:
Fixed-rate mortgages
Tracker mortgages
Standard variable rate mortgages (SVRs)
Interest only mortgages
Fixed-rate mortgages
This is the most common type of mortgage now offered by banks and other lenders. In a fixed-rate mortgage, your interest rate will be fixed for a certain amount of time. The fixed rate usually lasts for the first 2 to 5 years, though some banks offer 10-year fixed rate mortgages.
At the end of the fixed-rate period, your interest rate will switch to the lender's standard variable rate, which varies by bank. However, can choose to switch to a new deal with your bank or remortgage to a new lender in search of better interest rates.
- The interest rate paid will remain the same throughout the loan time regardless of economic changes like inflation or general hikes in interest rates
- It is great for budgeting as you'll pay the same amount each month
- If interest rates drop, you won't benefit as you'll continue paying the same amount
- Interest rates paid could be slightly higher
Tracker rate mortgages
Tracker rate mortgages are variable-rate mortgages where the interest rate is directly tied to a specified benchmark, typically the Bank of England base rate. The interest rate on the mortgage "tracks" or follows the changes in the chosen benchmark rate.
You can choose a tracker rate for a certain number of years. During this time, your monthly payments could go up or down as the base rate of interest changes.
- You could end up paying less if interest rates go down
- You could pay off your mortgage quicker by overpaying when rates are lower
- If interest rates rise, your monthly payments could increase
- It's harder to budget when your monthly payments aren't fixed
Standard variable rate mortgages
Standard variable rate (SVR) mortgages are variable-rate mortgages offered directly by lenders. The interest rate charged on an SVR mortgage is set by the lender and can change at their discretion. This means the amount you pay each month could go up or down.
An SVR mortgage is what you'll usually be moved onto at the end of your fixed-rate or tracker-rate period. This isn't generally the cheapest way to pay off a mortgage, but you may be able to get a better interest rate by switching to a new deal.
- They offer flexibility, making it easy for you to make overpayments or switch to a different mortgage type without incurring heavy penalties
- Your payments could go down if the SVR drops
- Rates can change at the lender's discretion, making it difficult to budget
- An SVR isn't generally the cheapest option
Interest-only mortgages
Interest-only mortgages require borrowers to pay only the interest on the loan during the mortgage term. At the end of the term, you'll need to repay the loan amount in full. Interest-only mortgages are less common as they're harder to get approval for. They may only be offered on buy-to-let mortgages or to individuals who can prove they have enough income or investments to repay the capital.
- Monthly payments are lower
- Interest-only mortgages could make it easier to invest in buy-to-let property
- You'll end up paying more interest in total than a capital repayment mortgage
- Your mortgage balance stays the same while house prices change, exposing you to higher negative equity risk
- It's harder to qualify for an interest-only mortgage
100% mortgages mostly disappeared after the 2008 financial crash, though there are a handful of options out there that could see you purchase a house without putting down any deposit. Mostly, they require a family member to act as a guarantor by providing cash savings or their own home as collateral.
It's also possible (though very rare) to get a 100% mortgage without a guarantor. Skipton Building Society offers this option, though there are a number of eligibility criteria, such as having a track record of reliably making payments.
While a 100% mortgage could make buying a home accessible to those who can't afford a deposit, it does come with some downsides. For starters, the interest rates tend to be higher. What's more, starting out having no equity in your home increases the risk of negative equity. This means if house prices fall, you could be unable to sell your home.
Common Fees & Charges
There are multiple different fees and costs associated with different parts of the mortgage process. Which ones you have to pay and how much they are will vary by lender. You may need to pay some upfront, or you may have the option to add the fees to your loan amount (this will result in paying more overall as the interest will also apply to the fees).
The table below describes common fees paid on mortgages:
Description | Average Amount | |
|---|---|---|
Origination fee | Fee for processing and underwriting the loan | 0.5% to 1% of the loan |
Application fee | Upfront fee for processing your mortgage application | £0 to £250 |
Product fee | Fee for the specific mortgage product you choose | £0 to £1,495 |
Telegraphic transfer fee | Cost of transferring the money for the purchase | £25 to £50 |
Valuation fee | Charged for assessing the value of the property you intend to purchase | £200 to £1500 |
Mortgage account fee | Covers the administrative costs of your mortgage account | £100 to £300 |
Early repayment charges | May be charged when you repay some or all of your mortgage earlier than agreed | 1% to 5% of the outstanding loan balance |
Exit fee | An administrative fee when you close your account. You probably won't pay it if you were charged an account fee | £75 to £300 |
Key Questions to Ask Your Bank
There are important questions you should ask before signing any contracts. Asking these questions will help you understand the deal better, grant you insight into what will be required of you throughout the loan term, and will help you decide if that deal is the right one for you.
Here are some of the most important questions to ask:
How much can I borrow?
What arrangement fees do you charge?
Are there any Early Repayment Charges?
Is there a limit on overpayments?
What kinds of valuation do you offer?
Can I choose my own building insurance provider? Do you charge a fee for this?
How long will the application process take?
What documents and information do you require for the application?
What will you need to provide your bank for a mortgage?
When applying for a mortgage, you typically need to provide several supporting documents and information. While specific requirements can vary among lenders, these are the commonly requested documents:
Proof of ID: This could be a current passport of driver's licence.
Proof of address: You can use a recent utility, council tax or credit card bill.
Proof of deposit: This will show you have enough to cover the deposit. It could be a bank statement for you savings account.
Proof of income: This shows you'll be able to make repayments. Employees can provide payslips and self-employed people can provide their tax return. A letter for HMRC or DWP could also be acceptable.
Proof of expenses: This shows that mortgage payments will be affordable on top of your other financial commitments. Your bank statements will provide this proof.
Proof of immigration status: If you're a foreign national, you may also need to provide proof of your right to live in the UK, such as a visa or residency permit.
Proof of capital: This may apply if you opt for an interest-only mortgage. Your lender may want proof that you'll be able to repay the capital at the end of the mortgage term, such as evidence of owning another property, a bank statement, or an investment account statement.
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