How to Get a Better Mortgage Rate in 2024

It is no secret that UK mortgage rates are high at the moment.

However, there are some financial checks you can make before you apply to ensure you are a desirable candidate for the lender. The aim of the game is to look as stable as possible, so the lender knows you can afford present and future repayments.

Doing the work beforehand gives you access to more product options and the chance to work with more lenders. Keep reading to learn how to get a better mortgage rate by securing your personal finances.

Achieving Affordable Mortgage Repayments - The Top Tips

If you are curious about how to get a better interest rate, take note of the tips below. Following these will make you a more desirable borrower.

• Make more than just the minimum credit card payments – Well-managed and affordable debt is not typically a big problem for lenders. However, they want to see that you are paying back more than the minimum amount. Otherwise, it may look like you cannot afford the debt and mortgage repayments.
• Avoid taking out more credit until you cement the mortgage rate – It can be tempting to start ordering furniture before you move into your new home. But this is not always the best financial move. Changes to your expenditure or credit score may affect the lender’s mortgage rate offer.
• Sign up to the electoral register – Most people are already on the electoral register (or roll). If you are not, this is your sign to sign up. Being on the roll (and having all relevant financial accounts registered at the same address) gives the lender a clear image of your finances and can speed the process up.
• Give your finances a general spring clean – For example, you can address any debts, cut out any unnecessary spending or streaming services and make a clear budget.
• Use a broker – Brokers help you find the most suitable products and rates for your specific financial needs. Rather than working with one lender, brokers do in-depth calculations, assess what you can afford and match you with relevant lenders.

If you find yourself searching ‘how to get a better interest rate?’ one final tip to remember is that mortgage rates aren’t everything. There are plenty of different mortgage packages available and the one with the lowest headline rate might not be the best one for you.

This is why working with a broker is critical for buying a house in the UK. These experts consider all factors and save you the headache of doing the work yourself.

Other Ways to Save on Your Mortgage

Alongside low interest rates and suitable mortgage packages, there are some other tips Brits can use to save on their mortgage payments.

Here are some final ‘how to save money on your mortgage’ tips to remember:

• Extend your current mortgage term
• Move to an interest-only mortgage (only if you want to decrease monthly payments)
• Consider downsizing or opting for a smaller property

There is no right or wrong answer when it comes to mortgage savings. It is a personal subject, so consider working with a professional to achieve the best solution for your finances and family.

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For more helpful information about how to manage your money, different financial products or what we do at Polar Credit, take a look at our Info Hub.