How Many Mortgage Deals Can You Get, Really?

12th June 2019

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When you’re searching for the best mortgage rates and deals, it’s easy to get lost in the bewildering amount of choice offered by lenders.

To help lift the fog, we’ve taken a look at how many deals are out there and explain how to find one that could suit your circumstances.

How many mortgage lenders are there?

There are around 100 mortgage lenders in the UK, which are mainly banks and building societies. Some are household names and others are specialists who you might not have heard of.

These are the top five largest lenders in the UK, according to the latest data from UK Finance:

  1. The Lloyds Banking Group

  2. Nationwide Building Society

  3. Royal Bank of Scotland (includes NatWest)

  4. Santander UK

  5. Barclays

mortgage lenders market share pie chart

How many mortgage deals are there?

It’s difficult to know precisely how many mortgage deals there are as lenders regularly add and remove mortgage deals from the market. Occasionally lenders even stop offering mortgages completely, like Tesco did in May 2019.

Based on our data, it’s safe to say there are about 12,000 mortgage deals offered by lenders in the UK.

What kind of mortgages are there?

Lenders offer several types of mortgages, based on the needs of borrowers.

Fixed-rate mortgage

If you want to make sure your monthly mortgage repayments don’t change, a fixed-rate mortgage could be the most suitable option for you.

The rate of interest you pay on your loan remains the same for a set period, such as two, three, five or ten years.

Tracker mortgage

A tracker mortgage usually follows the Bank of England bank rate, which is currently 0.75%. So if your tracker rate is the Bank rate + 2%, for example, your current rate would be 2.75%.

The tracker rate will usually be set at one or more percentage points above the rate that it’s tracking. Your deal may also include a ‘collar rate’, a minimum rate that the lender sets.

Discounted Variable Rate Mortgage

With a discounted variable rate mortgage, you usually pay the lender's Standard Variable Rate (SVR) - a figure the lender choses that doesn't often change - minus a fixed discount for a set number of years.

In general, you’ll get this discounted rate for a fixed period (two or three years, for example), and after this you’ll be switched onto the lender’s SVR.

Standard Variable Rate Mortgage

With a Standard Variable Rate mortgage you pay the lender’s SVR. This tends to be more expensive than most mortgage deals, and lenders can increase the rate when they want to.

Your lender is likely to move your mortgage onto their SVR when the initial period of your mortgage ends.

So it’s important to switch mortgages when your deal ends, so you don’t pay more than you need to.

Are there mortgages to suit me?

There are a number of mortgage deals for varying circumstances.

They include:

How many mortgage deals do brokers have?

To give you an example, Trussle has access to around 12,000 deals at any one time.

Many brokers (including Trussle) have access to exclusive deals, so you could have a better chance of getting a mortgage that’s right for you if you use one.

What should I consider when looking for a mortgage?

There are lots of things to consider when you’re looking for a mortgage. It really all boils down to your personal circumstances.

Your income may include bonuses, for example, and you might want a mortgage which lets you make large overpayments without having to pay penalty charges.

The most important thing is probably whether you can afford the repayments. So it’s really important that you know the true cost of your mortgage. That’s the total cost you’ll pay over the initial period of your mortgage deal.

This means not just looking at the interest rate. You also need to consider the fees and incentives, such as cashback or a free valuation of your new home. Sometimes a higher rate deal works out cheaper.

Bear in mind

Your home could be repossessed if you don't keep up repayments on your mortgage.

You may have to pay an early repayment charge to your existing lender if you remortgage.

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