How to Secure the right Mortgage Rates

How to Secure the right Mortgage Rates

How to Secure the right Mortgage Rates

When it comes to buying a home or remortgaging, getting the most suitable mortgage rate can save you thousands over the life of your loan. Whether you’re a first-time buyer or an experienced homeowner, knowing how to secure a competitive rate is essential. Here’s how you can put yourself in a good position to get a great deal.

1. Improve Your Credit Score

Your credit score is one of the biggest factors lenders consider when setting your mortgage rate. A higher score generally means lower interest rates. To improve your credit score:

  • Make all credit payments on time
  • Pay down existing debt
  • Avoid taking out new credit just before applying for a mortgage
  • Check your credit report for errors and correct them

Using tools like Experian, Equifax, or Check My File can help you monitor your score and understand what’s impacting it.

2. Save a Larger Deposit

The more you can put down as a deposit, the better the rate you’re likely to get. Lenders offer the great deals to those with lower loan-to-value (LTV) ratios — ideally 60% or below. If you can stretch your deposit from 10% to 15% or more, you’ll often see noticeable savings on your rate.

3. Reduce Your Debt-to-Income Ratio

Lenders want to be sure you can afford your mortgage payments. Reducing your monthly debt obligations (credit cards, car loans, etc.) before applying will improve your affordability profile and increase your chances of being offered a lower rate.

4. Choose the Right Mortgage Product

Fixed-rate, tracker, discount — each type of mortgage comes with its own pros and cons. While fixed rates offer certainty, variable or tracker rates might be cheaper at the outset. Working with a mortgage broker can help you compare deals and decide which product suits your situation the most.

5. Shop Around (or Use a Broker)

Don’t just go straight to your bank. The mortgage market is highly competitive, and different lenders assess applications in different ways. An experienced mortgage broker can access exclusive rates and help match you with lenders most likely to offer you a favourable deal.

6. Lock in a Rate at the Right Time

Mortgage rates fluctuate regularly. If you see a good deal, consider securing it with a decision in principle or mortgage offer. Most offers are valid for 3–6 months, which gives you some flexibility if you’re still searching for a property.

7. Get Your Paperwork in Order

Being “application ready” can make a big difference. Lenders prefer clients who are well-organised and easy to assess. Have the following documents ready:

  • Proof of income (3 months’ payslips or tax returns)
  • Bank statements (typically 3 months)
  • Proof of deposit
  • ID and proof of address

8. Consider Fees and Overall Cost

The lowest rate isn’t always the cheapest deal. Some mortgages come with high arrangement fees, which may outweigh the savings. Look at the total cost over the fixed period or term, not just the interest rate.

Need Help Securing a Great Mortgage Rate?

As a local mortgage broker in Exeter and Devon, we can help you navigate the market and find a mortgage that suits your needs. Get in touch for a fee- free, no-obligation chat and discover how much you could save.

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE

NxtGen Mortgages is a trading name of Just Mortgages Direct Limited which is an appointed representative of The Openwork Partnership, a trading style of Openwork Limited which is authorised and regulated by the Financial Conduct Authority.

Approved by The Openwork Partnership on 05/06/2025

YOUR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP WITH REPAYMENTS ON YOUR MORTGAGE.

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