In this brief guide, we are going to discuss the best mortgage lenders in the UK.

When looking at the best mortgage lenders it is important to note that because a mortgage lender is classed as one of the best doesn’t necessarily mean they may be the best-suited mortgage lender to you and to your circumstances.

The best mortgage lenders in the UK

Below are the Uk’s top 5 best mortgage lenders.

Best Mortgage lendersThe Which customer score
Nationwide Mortgages79%
Principality Building Society Mortgages76%
Coventry Building Society Mortgages76%
Skipton Building Society Mortgages74%
Metro Bank Mortgages73%
First direct bank Mortgages72%

Source-  Which best mortgage lenders review

How was the data gathered?

The data on which mortgage lenders in the UK are the best mortgage lenders were gathered by the Which mortgage research team.

To find the best mortgage lenders in the Uk they asked thousands of mortgage holders who were either remortgaging, first-time buyers or those moving homes. These people were asked to rate their mortgage lender based on the mortgage lenders application process., the mortgage lenders complaints handling process, the mortgage lenders online access and more.

After this was done the which mortgage experts then analysed each mortgage lenders current product offering in regards to the rates and deals offered to see which mortgage lenders were offering great value for money and the level of service provided. 

What does the data say about the best mortgage lenders in the UK?

The data about the best mortgage lenders in the Uk Is great but it should not form a huge part of your buying decision.

The data highlighted that many consumers consider the reputation of a mortgage lender before going ahead to make a mortgage application with them.

Who are the biggest mortgage lenders in the UK?  

According to data from UK Finance, the largest mortgage lenders in 2018 were:

Lloyds Banking Group (which includes Lloyds Bank and Halifax) 

Nationwide 

Santander 

Royal Bank of Scotland 

Barclays 

HSBC 

Coventry Building Society 

Yorkshire Building Society 

Virgin Money 

TSB Bank 

Clydesdale Bank

The fact that a mortgage lender is one of the biggest in the UK doesn’t mean that their mortgages may be suitable for you. It may be a good idea to compare all the mortgage lenders which are available in the UK mortgage market to see which one best suits you.

How to find the best mortgage deals of 2020?

To find the best mortgage deals of 2020 you should consider speaking with a mortgage broker as a mortgage broker will have access to tools which they can use to search the whole of the mortgage market to find the best mortgage deals.

Before you go looking for the best mortgage deals you should first decide on how much you need for your mortgage deposit and exactly how much of a mortgage you need.

Mortgage lenders will typically have mortgage deals based on the loan to value rate you want to borrow at. The loan to value rate is based on the amount of mortgage you want to take out and the amount of mortgage deposit you want to put down.

The next thing you will want to do to find the best mortgage deals in 2020 is to use a mortgage comparison tool and see what mortgage lenders are offering mortgage deals for the mortgage size and loan to value you want.

If you find a mortgage deal you like you can then go on and make a mortgage agreement in principle application with a mortgage lender who uses a soft credit check(as this will not affect your credit score).

You will receive a key facts illustration once you have been offered a mortgage agreement in principle. This will highlight exactly what your mortgage will look like in regards to monthly payments, mortgage rate mortgage term etc.

You should repeat this process till you find a mortgage deal which suits you.

Best lender for remortgaging

In regards to the best lenders for remortgaging HSBC has stood out to be one of the best mortgage lenders in this space. If you are looking to remortgage then you will find that HSBC are top on the mortgage list for most loan to value rates.

Best mortgage lender for customer service

In regards to the best mortgage lender for customer service, First direct has won most of the customer service aware hand you should be in good hands with them.

Best mortgage lender for buy-to-let

In regards to the best mortgage lender for buy to let mortgages, Leeds Building Society regularly appears at the top of most buy-to-let mortgage comparison tables. The lender offers fixed-rate, tracker and variable-rate buy-to-let mortgages. It also offers mortgages specifically for Small Houses in Multiple Occupation (HMOs).

Best lender for retirement

In Terms for the best mortgage lender when lending into retirement Halifax may be found on top of most comparison tables and it has recently raised its upper age limit for mortgages to 80.

Best lender for residential mortgages

For residential mortgages Halifax has been known to be very high in the rankings of not the best mortgage lender in this category.

Halifax has a very wide range of mortgages and does its best to cater for segments of the market where other high street mortgage lenders may not consider.

Halifax mortgages can be seen at the top of most residential mortgage comparison tables as it offers market-leading rates for some loan to value categories.

Best mortgage lender for first-time buyers

In regards to first-time buyers the best mortgage lender in this category may be between Nationwide building society and the Newcastle building society.

Most of these mortgage lenders will consider offering your products in hand with associated government schemes for first-time buyers, such as Help To Buy, Shared Ownership and Right To Buy. 

Using a mortgage broker to find the best mortgage lender for you

You may want to consider using an independent mortgage broker to get a mortgage and by default find the best mortgage lender for you.

Mortgage brokers are important as they can access mortgage products from across the whole of the market in some cases. This could be over 11,000 mortgage products. This may have some advantages than going directly to a mortgage lender.

A mortgage broker will look to understand your financial circumstances and then provide recommendations on which mortgage products may be suitable for you.

After giving you these mortgage recommendations, most mortgage brokers will seek your consent to apply for a mortgage in principle. This will allow you to shop for your home easier as more estate agents and sellers may take you seriously or it will give you confidence that your remortgage is indeed a possibility before you make a full mortgage application. Once you have found a home you want to buy or are satisfied with the mortgage offer for your remortgage then the mortgage broker will then look to get you a mortgage offer.

This will come with a key facts illustration document which details out the features of your mortgage including how much you will pay per month if there are any limits such as early repayment fees, or annual overpayment limits.

If you are happy with everything you can then go on to secure your mortgage with the help of a conveyancer. 

Your conveyancer will manage the legal searches on the property to ensure there aren’t any issues with it, they will oversee the sales agreement to ensure it is in your best interest, they will manage the transfer of mortgage funds, exchange contracts with the seller or their conveyancer and set a completion date with the seller or their conveyancer.

In this brief guide, we compiled a list of the best mortgage lenders in the UK. If you have any questions or comments please let us know.

If you need financial advice and you live in the UK then you could contact the Money Advice service over the phone or via chat for impartial advice.

You can also contact the debt charity “Step Change” if you are in debt and need help.

John has 22 years of experience in financial services. This spans across financial research, financial services (As a qualified mortgage broker and underwriter), financial trading and sales at global investment banks. While working as a publishing research analyst, he covered European bank credit and advised institutional clients on investment strategies at both JP Morgan and Societe Generale. John has passed all three levels of the CFA (Chartered Financial Analyst) programme.

John has 22 years of experience in financial services. This spans across financial research, financial services (As a qualified mortgage broker and underwriter), financial trading and sales at global investment banks. While working as a publishing research analyst, he covered European bank credit and advised institutional clients on investment strategies at both JP Morgan and Societe Generale. John has passed all three levels of the CFA (Chartered Financial Analyst) programme.