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Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on a loan or any other debt secured on it

PUBLISHED

29 MAY 2024

READING TIME

24 minutes

Best Mortgage Lenders June 2024

When looking for a mortgage, the best mortgage lenders are those capable of offering a deal that suits you and your circumstances. Here’s our roundup of a selection of UK mortgage lenders along with the pros and cons of each.

Written By

Edited By

Many or all of the products and brands we promote and feature including our ‘Partner Spotlights’ are from our partners who compensate us. However, this does not influence our editorial opinion found in articles, reviews and our ‘Best’ tables. Our opinion is our own. Read more on our methodology here.

Finding the best mortgage lender and deal for you is essential, mainly because taking out a mortgage is one of the biggest financial decisions you’re ever likely to make. 

Learning as much as you can about different mortgage lenders, including the products and features they offer and the eligibility criteria you need to meet, is key in any search for a mortgage. The mortgage rate you can get is likely to be your most important consideration, but to help you in your search, we’ve looked at the things that might get overlooked, including the pros, cons and features mortgage lenders offer. 

Our mortgage lender star ratings are based on our expert assessment of the things mortgage borrowers have told us are some of the most important to them – we know what these are because we carried out a customer survey to find out. It is through this combination of research, expertise and evaluation that our roundup can help show how the features of various mortgage lenders shape up against other top providers. 

Editor’s Picks

Mortgages

Editor’s Pick

Minimum Loan Amount

Available Terms

 

Barclays Mortgages
Overall
£5,000
5 to 40 years

Nationwide Mortgages
Building society
£25,000
2 to 40 years

Lloyds Bank Mortgages
Customer support
£25,000
2 to 40 years

These mortgage providers are available via our partnership with London & Country Mortgages. NerdWallet Ltd does not form part of the service beyond this introduction.

Think carefully before taking out any mortgage. Your home may be repossessed if you do not keep up repayments.

Important information about Editor’s Picks

The Editor’s Picks listed above are based on NerdWallet’s editorial team’s analysis of products reviewed by us and is not a whole of market view. The team evaluates which brands offer standout features that may be important to you.

Editor’s Picks exclude any assessment of a providers’ rates, fees or product suitability, which must always be a priority when considering any financial product. Always consider others in the market and obtain professional advice.

Editor’s Picks are our own opinions and don’t constitute advice, recommendation or suitability of your financial circumstances. They are editorially independent of any partnerships with NerdWallet.

NerdWallet’s Best Mortgage Lenders June 2024

This selection of brands has been reviewed and evaluated by Nerdwallet, but others are available in the UK market. Find out what we mean when we say ‘best’, why we are comfortable using it, and an in-depth explanation of Nerdwallet UK’s review methodology.

Provider

NerdWallet’s Rating

Min.Loan Term

Max.Loan Term

Min.Loan Amount

 
5.0 / 5
5 years
40 years
£5,000
5.0 / 5
2 years
40 years
£25,000
5.0 / 5
2 years
40 years
£25,000
5.0 / 5
5 years
40 years
£6,000
5.0 / 5
3 years
40 years
£25,000

RBS
4.5 / 5
3 years
40 years
£25,000

TSB
4.5 / 5
1 year
40 years
£5,000
4.5 / 5
5 years
40 years
£10,000

Important information: Our Reviews, Star Ratings and Editor’s Picks do not consider the product provider’s lending rates and therefore do not reflect how much it costs to borrow from the reviewed brand. Always compare rates from other providers when considering any type of borrowing.

Barclays Mortgages

5 NerdWallet's ratings

5 to 40 years

£5,000

Capital & Interest; and Interest Only

Yes

Yes

This mortgage provider is available via our partner, London & Country Mortgages.

NERDWALLET Pros and cons

Pros:

  • It offers capital repayment and interest-only mortgages. 
  • Mortgages at 85% LTV and over are available.
  • There is a low minimum loan amount of £5,000. 
  • There are multiple ways to contact customer support.

Cons:

  • You can’t make a full application for a mortgage online.
  • Mortgage terms shorter than five years are available elsewhere.

Halifax Mortgages

5 NerdWallet's ratings

2 to 40 years

£25,000

Capital & Interest; and Interest Only

Yes

Yes

This mortgage provider is available via our partner, London & Country Mortgages.

NERDWALLET Pros and cons

Pros:

  • Capital repayment and interest-only mortgages are available.
  • It offers mortgages at 85% LTV and over.
  • There is a wide range of mortgage terms, up to 40 years.
  • Halifax provides multiple customer support options. 

Cons:

  • You can find other lenders that offer smaller minimum mortgage amounts below £25,000.

Lloyds Bank Mortgages

5 NerdWallet's ratings

2 to 40 years

£25,000

Capital & Interest; and Interest Only

Yes

Yes

Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on a loan or any other debt secured on it.

NERDWALLET Pros and cons

Pros:

  • Capital repayment and interest-only mortgages are available.
  • There is a wide range of mortgage terms, up to 40 years.
  • Lloyds offers mortgages at 85% LTV and over.
  • There is a wide choice of customer support options.

Cons:

  • Smaller minimum loan amounts below £25,000 are available elsewhere.

Santander Mortgages

5 NerdWallet's ratings

5 to 40 years

£6,000

Capital & Interest; and Interest Only

Yes

Yes

This mortgage provider is available via our partner, London & Country Mortgages.

NERDWALLET Pros and cons

Pros:

  • It offers capital repayment and interest-only mortgages. 
  • Mortgages at 85% LTV and over are available.
  • There is a low minimum mortgage amount of £6,000. 
  • There are a variety of ways to contact customer support.

Cons:

  • Mortgage terms shorter than five years are available elsewhere. 

NatWest Mortgages

5 NerdWallet's ratings

3 to 40 years

£25,000

Capital & Interest; and Interest Only

Yes

Yes

This mortgage provider is available via our partner, London & Country Mortgages.

NERDWALLET Pros and cons

Pros:

  • Capital repayment and interest-only mortgages are available.
  • It offers mortgages at 85% LTV and over.
  • There are a variety of ways to contact customer support.

Cons:

  • There are other lenders that can offer smaller minimum mortgage amounts below £25,000.

Royal Bank of Scotland Mortgages

4.5 NerdWallet's ratings

3 to 40 years

£25,000

Capital & Interest; and Interest Only

Yes

Yes

Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on a loan or any other debt secured on it.

NERDWALLET Pros and cons

Pros:

  • Offers capital repayment and interest-only mortgages. 
  • Mortgages at 85% LTV and over are available.
  • RBS offers a wide choice of customer support options.

Cons:

  • Some other lenders offer smaller minimum loan amounts below £25,000.
  • Mortgage terms shorter than three years are available elsewhere.

TSB Mortgages

4.5 NerdWallet's ratings

1 to 40 years

£5,000

Capital & Interest; and Interest Only

Yes

No

This mortgage provider is available via our partner, London & Country Mortgages.

NERDWALLET Pros and cons

Pros:

  • Capital repayment and interest-only mortgages are available. 
  • TSB offers mortgages at 85% LTV and over.
  • There is a wide range of mortgage terms, from 1 to 40 years.
  • It offers a lower minimum mortgage amount compared to other lenders we’ve reviewed

Cons:

  • TSB offers fewer product options than some other lenders.  
  • You can’t complete a full application for a mortgage online.

HSBC Mortgages

4.5 NerdWallet's ratings

5 to 40 years

£10,000

Capital & Interest; and Interest Only

Yes

Yes

This mortgage provider is available via our partner, London & Country Mortgages.

NERDWALLET Pros and cons

Pros:

  • Offers capital repayment and interest-only mortgages. 
  • Mortgages at 85% LTV and over are available.
  • HSBC offers a wide choice of customer support options.

Cons:

  • You can find other lenders that offer smaller minimum loan amounts below £10,000.
  • Mortgage terms shorter than five years are available elsewhere.

The pros and cons featured with each brand are chosen by us based on a combination of our expert opinions from research of the product market and an exclusive survey of UK consumers conducted on behalf of NerdWallet UK to identify the features that people feel are most important. There are other pros and cons that should be taken into account before considering a financial product. Information was correct at the time of publication but may have changed since.

Nerdwallet Survey: February 2023

Types of mortgage lenders

Working out the best mortgage lender for you depends on why you’re looking for a mortgage and the type of mortgage you need.

Mortgage lenders for first-time buyers

If you’re stepping on to the property ladder for the very first time, you’ll be looking for first-time buyer mortgage lenders. To help overcome financial pressures, most first-time buyer mortgages allow smaller deposits, and you’ll usually be able to find deals that aim to keep initial fees to a minimum.

Mortgage lenders for bad credit

If your credit history leaves a little to be desired, you may need to find mortgage lenders that specialise in mortgages for bad credit. These lenders may be willing to offer you a mortgage when others won’t, though it’s likely the interest rates you’re offered will be higher than if your credit rating was good.  

Mortgage lenders for self-employed workers

If you work for yourself rather than someone else, mortgage lenders will help self-employed applicants. Note that you won’t find specific self-employed mortgages – most mortgage lenders welcome applications from employed and self-employed workers and offer the same products to both. However, the eligibility criteria by which self-employed borrowers are assessed will be different to that for employed workers. 

Mortgage lenders for remortgaging

When you have an existing mortgage that you want to swap for a new deal, you’ll want the best mortgage lenders for remortgaging. People tend to remortgage because their current fixed-rate mortgage is about to finish and they want to avoid being automatically switched over to their lender’s generally higher standard variable rate (SVR). Alternatively, you may want to remortgage for home improvements, while it may also be possible to remortgage to consolidate debt. However, remember remortgaging part way through a deal period will likely trigger early repayment charges (ERCs).

Mortgage lenders for shared ownership

A shared ownership mortgage may offer a way of getting a foot on to the property ladder if you’re likely to find it difficult to get a mortgage for the full purchase price of a property. It works by letting you buy a smaller proportion of a property rather than all of it, though you will need to pay rent on the rest. Some mortgage lenders offer shared ownership mortgages as an option, but others don’t. 

Mortgage lenders for buy to let

Buy-to-let mortgages are aimed specifically at landlords who are buying a property to rent out rather than live in it themselves. How much you expect to earn in rental income from tenants in the property usually plays a key role in determining how much you’re allowed to borrow through a buy-to-let mortgage.     

How to get the best mortgage deals

There are a number of important factors that you’ll always need to consider when searching for the best mortgage lenders and deals for you.  

Whole of market, direct and broker 

A mortgage broker or adviser can help you find a suitable mortgage and guide you through the application process. However, there are different types of brokers, and each differs in the level of advice they can offer and the range of mortgage deals they can access. 

Importantly, be aware that brokers offer a service that either covers the whole of the mortgage market or a limited panel of lenders – so you’ll need to find out which one they are. And if you go direct to a lender, their advisors can only advise you on the products that it has available.

Why loan to value is important

Your loan-to-value (LTV) ratio is the amount you want to borrow through a mortgage expressed as a percentage of the value of your property. So if you have a deposit or equity of £20,000 and are buying a home worth £100,000, you need a mortgage of £80,000 – this means your LTV is 80%. Usually, the lowest mortgage rates are reserved for those with the lower LTVs. You’ll often find the lowest LTV ratio bracket is 60% and under. Sometimes, keeping a close eye on property prices, while saving a larger deposit or waiting until you’ve paid more off your existing mortgage, could push you into a lower LTV bracket, where rates may be better.

» MORE: What is happening to UK house prices?   

Interest-only vs repayment mortgages

Take out a repayment mortgage and your monthly repayments will go towards paying off your interest and some of the mortgage debt (the capital) that you borrowed, each month. Keep up with your repayments, and your mortgage debt should be totally clear by the end of your full mortgage term. 

With an interest-only mortgage, on the other hand, your repayments only cover the interest that you’re charged each month and won’t reduce the loan amount that you borrowed. Instead, you’ll need to have a credible plan for paying this back at the end of the loan term, usually in the form of savings, investments or other assets. Most mortgages taken out nowadays are repayment mortgages, but interest-only mortgages remain available too. These are usually capped at a certain percentage of the total borrowing amount, meaning you might have to take out a combination of the two types of repayment. A qualified advisor can help you more with this subject. 

» MORE: Should you get an interest-only or repayment mortgage?

Mortgage rates and fees

Your mortgage rate is the rate of interest that lenders charge you on your outstanding mortgage balance. In turn, this will determine the size of your mortgage repayment each month – the lower your interest rate, the lower your monthly repayments will be. Mortgage rates can be either fixed or variable throughout your mortgage term. 

At the same time, you’ll need to take into account any charges and fees that are associated with the mortgage. There will usually be fees to pay when you first take out or arrange the mortgage and then there could be other charges that come into play if you make overpayments or miss or are late with repayments. If you want to pay off your mortgage early, you may also need to pay an early repayment charge.

To help you compare mortgage lenders and deals, you can look at the annual percentage rate of charge, or APRC. This single figure is a reflection of the interest rates and mortgage fees you’ll be charged annually over the lifetime of a mortgage. However, while this is a good starting point, it’s important to understand a breakdown of all the fees per product. This is because they vary between lenders and should align to your individual circumstances and what’s important to you at that particular time.

» MORE: See current mortgage rates

Stamp duty

Stamp duty is a tax you may need to pay when purchasing property or land. The value of your property and whether you’re a first-time buyer or existing homeowner are among the factors that will help determine how much stamp duty you’ll have to pay. 

At the time of this publication, you won’t need to pay stamp duty if you’re buying a residential property in England and Northern Ireland to live in yourself and the property is worth under £250,000. You’ll also avoid stamp duty altogether if you’re buying your first ever home and it’s valued at less than £425,000 – this is called first-time buyer stamp duty relief. Stamp duty thresholds and rates differ in Scotland and Wales, and also if you’re buying a property to rent out as a buy to let.  

» MORE: Use our stamp duty calculator

Credit score

Lenders will consider your credit score when you apply for almost any type of loan. If you have a good credit score, you may find it easier to get the mortgage you want and be able to access lower mortgage rates. It’s still possible to get a mortgage with a bad credit score, but you’ll have fewer mortgage lenders to choose from and may face higher mortgage rates. You may also need to find a specialised lender, and it’s important that if you have a less than perfect credit score not to apply for a mortgage until you are confident the lender can help you. A declined application will have a negative impact on your credit score.

» MORE: How to improve your credit score

Types of mortgages 

There are various types of mortgage available to both new and existing home buyers, including:

Fixed-rate mortgages

A fixed-rate mortgage means the interest rate you pay is fixed for a certain period of time, and is often called a ‘deal’. For example, you’ll see lenders that offer a ‘two-year fixed rate deal’. This gives you peace of mind that your monthly repayment will remain unchanged for the length of time that you fix, even if interest rates elsewhere increase. At the end of the fixed-rate period, you’ll automatically move on to your current lender’s SVR or you may want to remortgage to another mortgage deal with your existing or a different lender. 

Tracker mortgages

A tracker mortgage is a type of variable rate mortgage that typically tracks the movements in the Bank of England base rate. The rate you’ll pay will move automatically and is normally set a certain percentage point above the base rate that it follows. One advantage of a tracker mortgage is that your monthly repayments may fall if the base rate falls. But equally, the potential drawback is that your repayments can also rise if the base rate rises.  

Standard variable rate mortgages

Your lender will usually switch you over to a standard variable rate (SVR) mortgage if you don’t remortgage once your initial deal ends, for example, when your fixed-rate, tracker or discounted period expires. The SVR is generally higher than the base rate and the rates available on other types of mortgages, and, because it’s a variable rate, your repayments can rise or fall. Usually the SVR will move in a similar direction to the Bank of England base rate, though lenders have the discretion to change the rate when, and by how much, they like. 

Discounted mortgages

Discount mortgages are another form of variable rate mortgage on which the interest rate payable is set at a discount to the SVR for a fixed period of time. At the end of the fixed period, you will then start paying the full SVR, unless you remortgage to a different deal. 

Interest-only mortgages

Technically this is a type of repayment, not a type of mortgage but it’s good to consider it when thinking about all things mortgage-related. With an interest-only mortgage, the repayments you make each month only need to cover the interest you’re charged – this can help keep your monthly mortgage costs low compared to a repayment mortgage. However, as you’re not paying off any of the loan each month, you must have a repayment strategy that will allow you to pay back the full amount of the loan at the end of the loan term. Interest-only mortgages can include deal’s such as a fixed rate of interest for a period of time. 

Offset mortgages

An offset mortgage is where you have your mortgage, savings account and sometimes your current account with the same provider. The mortgage balance on which you’re charged interest is then reduced by the amount you have in your savings and, if using, your current accounts. This means you pay less in interest on your mortgage, though you will miss out on receiving interest on your savings. Some lenders may also offer family offset mortgages which allow a member of your family to put forward their savings as an offset against the mortgage. 

Islamic mortgages

Halal or Islamic mortgages are structured so that potential homebuyers can raise finance that doesn’t attract interest. As paying interest is forbidden under Islamic law, these types of mortgages are an option for Muslims who need to borrow to buy a home and want to remain faithful to their beliefs, but are also available to other types of borrowers who find this type of mortgage appealing.   

Should I use a mortgage broker?

Getting any kind of mortgage is a big decision and taking mortgage advice is often a good idea. A qualified mortgage broker or adviser can help you find a mortgage that suits you. Make sure you understand how much of the mortgage market they can access for you when recommending products to you. If you’re more confident that you know exactly what you need in a mortgage, you may want to apply direct to the mortgage lender yourself. Mortgage lenders have advisers on hand for you but they will only be able to talk to you about mortgages from their company. If you choose to not take advice at all, this is called ‘execution only’.

» MORE: Do I need mortgage advice? 

How to use a mortgage broker

All mortgage advisors will have to fully assess your personal financial situation and mortgage needs in order to help find the best mortgage deal for your particular circumstances.

If you use an independent mortgage broker, they may also have access to deals from mortgage lenders that are not available directly to borrowers, and can help guide you through the application process, aligning it to the most appropriate lender. It’s important to understand how much of the mortgage market the broker can access for you. However, as it’s likely that you will need to pay for the mortgage advice you receive, you’ll need to factor this into your overall mortgage costs. Many have different charging structures. Some may charge flat fees while may, only charge if you receive a formal mortgage offer, so shop around when using a broker. 

Can I get a mortgage?

Whether you can get a mortgage depends on a number of factors, but essentially lenders want to be sure you’ll be able to afford your mortgage now and in the future.

To work this out, they will look at your finances as a whole and, in particular, weigh up your income against your outgoings. Your employment status, any debt you might have and your credit history will all be important as well. Each lender has set mortgage eligibility criteria outlining the rules around who they are willing to lend to and on what basis, so if you are turned away by one, you may want to look elsewhere. 

Even if you feel you don’t have much money coming into your household, it may still be possible to get a mortgage on a low income. It may also be possible to get a mortgage on benefits too. 

Note as well that the minimum legal age for taking out a residential mortgage is 18, though mortgage lenders are within their rights to set this higher. For buy-to-let-mortgages you’ll usually need to be at least 21. There will also be a maximum age you can be when your mortgage term is due to end, which varies from lender to lender. 

» MORE: Best mortgage lenders

How much can I borrow?

The maximum amount a mortgage lender will let you borrow mainly depends on your income, expenditure and your credit score and history. Before offering you a mortgage a lender will conduct an affordability assessment, which is designed to work out the monthly payments you can afford. This will help the lender decide the maximum amount you’re allowed to borrow. There will also be a maximum based on the mortgage valuation of the property.

Take some time to play around with mortgage calculators to get an idea of how much you may be able to borrow and what your monthly repayments may be. Before making a formal mortgage application to a lender, try to get a mortgage in principle first. This will give you an idea as to whether a lender may be willing to offer you a mortgage and for how much, usually without affecting your credit score.

» MORE: Try our mortgage affordability calculator 

Check for mortgage initiatives and schemes

It’s always worth checking whether there are any government schemes and initiatives that may be able to help you get a mortgage or buy a home.    

95% Mortgage Guarantee Scheme: Currently due to run until the end of June 2025, the mortgage guarantee scheme is designed to encourage mortgage lenders to make 95% LTV mortgages available to buyers with only a 5% deposit. 

First Homes Scheme: Under the First Homes scheme, eligible first-time buyers in England may be able to get a 30% to 50% discount on the market value of certain properties. 

Shared Ownership: The shared ownership scheme in England can help you on to the property ladder by allowing you to buy a certain percentage of property rather than all of it and pay rent on the rest. There are similar schemes throughout the UK.
   
Right to Buy: This scheme gives eligible council tenants in England the right to buy their current property at a discount of up to 70% of its market value, depending on the length of time you’ve been a tenant and subject to certain maximums. There are similar schemes in Scotland, Wales and Northern Ireland, and also a Right to Acquire scheme for housing association tenants.

Help to Buy: Aiming to help buyers with a smaller deposit, the Help to Buy equity loan scheme remains an option in Wales, but is no longer available in England, Scotland and Northern Ireland.  

Forces Help to Buy: If you’re in the Armed Forces, the Forces Help to Buy Scheme offers eligible members an interest-free loan that can be repaid over 10 years to support homeownership. 

Lifetime ISAs: If you’re saving for a deposit, putting your funds into a Lifetime ISA will see the government add a 25% bonus to the amount you put aside of up to £1,000 a year.  

    How much will my mortgage cost?

    The cost of your mortgage will depend on a number of factors, including the type of mortgage you take, the amount you borrow, the size of your deposit, the length of your mortgage term, and your mortgage rate. A mortgage lender must make you fully aware of all the costs of a mortgage before you apply.

    » MORE: Try our mortgage repayment calculator

    Which are the biggest mortgage lenders in the UK?

    In 2022, Lloyds Banking Group was the biggest mortgage lender in the UK in terms of gross lending, according to the latest UK Finance data. NatWest, Nationwide, Santander, Barclays and HSBC were the next largest.  

    Methodology – How we picked our best mortgage lenders

    NerdWallet has evaluated and reviewed 14 mortgage lenders in the UK. Collectively these lenders accounted for 84% of the gross UK mortgage lending in 2022, out of approximately 70 lenders in the market for that year.

    We looked at 25 data points for each mortgage, based on the criteria that matter most to mortgage borrowers, scoring them on product options, mortgage criteria, application process and availability of customer support, among other factors. This information was gathered from each lender’s website and company representatives. In addition, we regularly add new brands and our editorial team reviews them against the same criteria for consistency and accuracy.

    Using the same data across all products and features, we were able to create star ratings, presented on a scale of one to five stars, where a one-star score represents ‘poor’ and a five-star score represents ‘excellent’.

    Important information: Neither our review nor star ratings considered lending rates, and therefore does not reflect how much it costs to borrow from these lenders. Always check and compare a lender’s rates and fees against others on the market when considering a mortgage. The rate you are offered will be dependent on your circumstances, loan amount and term, and may differ from the advertised rate. This is not a whole of market review and is a small selection of mortgage lenders available in the UK. This is a review of lenders and not the products, interest rates, fees or deal terms they offer. Many lenders also offer preferential products exclusively via brokers and intermediaries which have not been reflected in this review. Our use of the word ‘best’ reflects our results of the firms we reviewed for this mortgage roundup only. It does not constitute advice or recommendation.

    Mortgage Lender FAQs

    Which UK mortgage lender is the best?

    Barclays, Halifax, Lloyds Bank, Santander and NatWest currently receive five stars among the mortgage lenders we have reviewed but there is no one best mortgage lender for everybody in every situation. The best mortgage lender for you will be the one that can provide a mortgage deal most suitable to your circumstances.

    Who is offering the lowest mortgage rate in the UK?

    Mortgage lenders review and amend the mortgage rates they offer on a very regular basis. The wide range of mortgage types available also makes it difficult to say a certain lender is offering the lowest mortgage rate overall. Remember as well that the deal with the lowest mortgage rate won’t necessarily be the mortgage that is best suited to you and your circumstances. 

    Who is the fastest mortgage lender in the UK?

    A typical turnaround time on a mortgage offer is between two and four weeks, but some lenders may be faster, and some may be slower. Making sure you complete your application correctly and provide the necessary documents may result in a faster approval, but processing times may increase if a lender is inundated with applications. The complexity of the application will make a difference in the timescales. This could be your own financial situation or the difference to remortgaging your own home to moving house. 

    What is the lowest deposit needed for a mortgage in the UK?

    The lowest deposit mortgage some lenders will accept is 5% of the value of the property you’re buying. This means you need a mortgage at 95% LTV. While some lenders offer mortgages that don’t require a deposit, these require you to have a guarantor, whose own assets guarantee the deposit, making them liable to step in and pay what you owe if you don’t. This means they could possibly lose their own asset. 

    » MORE: What are guarantor mortgages? 

    Are there any mortgage lenders that accept benefits?

    Yes, there are mortgage lenders that will accept benefits as a source of income and include them in affordability calculations alongside other income when assessing whether you can get a mortgage. If benefits are your only source of income, getting a mortgage is likely to prove more difficult but may not be impossible. 

    » MORE: Getting a mortgage on benefits

    What is ARPC and is it important?

    The annual percentage rate of charge – or APRC – shows how much a mortgage will cost each year if you keep it for the full term. It takes into account your initial interest rate, the SVR you’d pay once an initial deal ends, and all related mortgage charges, including arrangement fees, and is important in allowing borrowers to make comparisons between mortgage products.

     More from NerdWallet UK

    Review methodology

    At NerdWallet UK, we base our reviews and our ‘Best’ pages on the results of surveys we undertook about what was important to people who use these products. This allows us to look at products impartially of any commercial arrangements we have and fairly rate the products on the same set of criteria.

    Best means our ‘Best’ and is based only on what products we have aligned to our surveys, which form the basis of our reviews and ratings. This means that there will be other products on the market that we have not included in our ‘Best’ pages. Best does not mean it’s best for you, nor does it mean the ‘cheapest’.

    Our reviews may display lenders’ rates. This additional information has not been included in our evaluations but is still very important when choosing a product. Rates offered can depend on circumstances, amount and term. Always check details before proceeding with any financial product.

    Product details reflect the information that was available at that time but may have changed since. We strive to give you a review on as many products as possible, but there will be products not included on the market. The review is our opinion, but it does not constitute advice, recommendation or suitability for your financial circumstances.

    You can view our full review methodology here.

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