Getting a lower mortgage rate means reducing the interest you pay on your home loan. The main strategies include increasing your deposit to lower your LTV ratio, improving your credit score, using a whole-of-market broker, and considering green mortgage products.
How to Get a Lower Interest Rate on Your Mortgage
Finding the lowest mortgage rate isn't simply a case of applying for the cheapest deal you can find online. It requires strategy, preparation, and — ideally — expert guidance.
1. Use a Mortgage Broker
Getting the lowest rate isn't about applying for the cheapest advertised deal. You first need to ensure you meet the lender's eligibility criteria — a rejected application can damage your credit file and hamper future applications. A mortgage broker with access to 90+ lenders will ensure you only apply where there's a strong chance of approval, giving you access to rates you might not find on your own.
2. Put Down a Bigger Deposit
A larger deposit doesn't just reduce how much you need to borrow — it lowers your loan-to-value (LTV) ratio, which unlocks access to better rates. Lenders reserve their most competitive deals for borrowers with lower LTVs, typically below 60–75%. Even an extra few thousand pounds of deposit can push you into a more favourable LTV band.
3. Optimise Your Credit Profile
Your credit files significantly impact the outcome of any mortgage application. Before applying, check your reports with all three UK credit reference agencies (Equifax, Experian, and TransUnion) and ensure they're accurate and up to date. See our detailed guide on how to improve your credit score before applying.
4. Consider Green Mortgages
With lenders increasingly keen to promote sustainability, green mortgages are becoming a genuine route to lower rates. If your property has an EPC rating of A or B, or you're making energy-efficiency improvements, several lenders offer preferential rates.
How a Broker Can Help You Lower Your Rate
A mortgage broker's job isn't just to find you a mortgage — it's to find you the best possible mortgage for your circumstances. The right broker will:
- Have deep knowledge of the entire UK mortgage market, including specialist lenders
- Assess the pros and cons of different products — fixed vs variable, short-term vs long-term
- Know which lenders offer the lowest rates to people in your specific situation
- Help optimise your application to unlock cheaper rates where possible
This is particularly valuable if you have complex income (self-employment, multiple contracts, foreign income) or any credit issues. Specialist brokers work with lenders who cater to these situations and can often secure rates that would be impossible through a standard high-street application.
Securing a Lower Rate on Your Remortgage
When your existing mortgage deal ends, your lender will typically move you onto their standard variable rate (SVR) — which is almost always significantly higher than your previous fixed or tracker rate. This is the point at which many homeowners overpay unnecessarily.
A broker will compare your current lender's renewal offer against every other deal on the market. Even if your circumstances have changed since you first took out your mortgage, there are often better deals available.
Top tip: You can start the remortgage process up to six months before your current deal ends. Many lenders will let you lock in a rate now, protecting you against future rate rises while giving you time to complete the switch.
Other Ways to Lower Your Mortgage Payments
Sometimes the best route to lower payments isn't a rate change — it's restructuring the deal itself. Options include:
- Extending your mortgage term: Spreading repayments over a longer period reduces monthly costs, though you'll pay more interest overall.
- Switching to interest-only: Temporarily moving to interest-only payments can provide breathing room, though you'll need a repayment plan for the capital.
- Changing rate type: Moving from a fixed rate to a tracker (or vice versa) could save money depending on market conditions.
- Getting off the SVR: If you're on your lender's standard variable rate, almost any fixed or tracker deal will be cheaper.
- Offset mortgages: If you have significant savings, linking them to your mortgage via an offset arrangement can reduce the interest you pay.
- Overpayments: Overpaying reduces your balance faster, saving thousands in interest over the term.
Always speak to a broker before making any changes — your existing provider can only advise on their own products, whereas a broker compares the entire market.
Frequently Asked Questions
- Which lenders offer the lowest mortgage rates?
- There's no universal answer. Each lender has their own criteria and will offer the best rates to borrowers who most closely match them. What's cheapest for one person may not be available to another. A broker can identify the lender offering the lowest rate for your specific circumstances.
- How do I get a low rate if I'm self-employed?
- High-street lenders often view self-employed borrowers as higher risk and may charge higher rates. Your best route is to work with a broker who specialises in self-employed mortgages and has relationships with lenders who understand complex income structures.
- Can I get a lower rate with bad credit?
- It depends on the age, value, and severity of any credit issues. Some high-street lenders may reject your application outright, but specialist providers can be more flexible — assessing your current financial position rather than solely relying on your credit history.
- Should I fix my mortgage rate or go variable?
- It depends on your risk appetite and market conditions. Fixed rates offer payment certainty; variable rates may be cheaper initially but can rise. In periods of rate uncertainty, many borrowers prefer to lock in. A broker can advise based on current market conditions.
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