Top Mortgage Lenders in 2024: Rates and Insights

Finding the best mortgage lender can sometimes be challenging in today’s evolving mortgage market. With continual changes in interest rate expectations and lenders offering a wide variety of products, it is not always easy to understand the current landscape.

Overview of the Mortgage Market in 2024

The Bank of England base rate was reduced to 5% on 1 August 2024, finally reflecting a shift in the financial climate after 14 consecutive base rate increases prior to then, from 16 December 2021 onwards, driven by the need to control inflation. The base rate impacts mortgage interest rates, which rose dramatically after mid-December 2021, after they had been at an historic low of just 0.10%. These rate increases have had a substantial effect on mortgage affordability.

As of mid-September 2024, the average two-year fixed mortgage rate for a loan-to-value ratio (LTV) of 75% was 4.78%, while the average 75% LTV five-year fixed mortgage rate was 4.44%. While these rates may seem high compared to the sub-2% deals seen until just two to three years ago, they have, nevertheless, stabilised after several aggressive increases. It continues to remain important for homebuyers and those remortgaging to find the best possible mortgage rates.

Top Mortgage Lenders

HSBC UK

HSBC remains one of the top mortgage lenders in the UK due to its competitive rates and diverse mortgage options. The bank offers various fixed-rate and variable-rate mortgages tailored for first-time buyers, home movers and those looking to remortgage.

• Interest rates: HSBC’s two-year fixed rate for an LTV of 75% and without any booking fees is 4.64%, while the comparable five-year fixed rate is 4.09%. Please note, however, that interest rates change continually.

• Customer satisfaction: In a recent Which? survey, HSBC scored highly for customer service, with 81% of customers rating their experience as positive.

• Best for: Flexibility and low arrangement fees.

One of HSBC’s features is its mortgage overpayment options, which allow borrowers to repay up to 10% of their mortgage balance annually without incurring early repayment charges. This flexibility can significantly reduce the total interest paid over the life of the loan.

Nationwide Building Society

Nationwide, the UK’s largest building society, is known for offering attractive rates and excellent customer service. Nationwide provides a broad range of mortgage products tailored to various buyer profiles, particularly first-time buyers and those seeking longer-term fixed rates.

• Interest rates: Nationwide’s two-year fixed rate for an LTV of 75% without any booking fees is 4.64%, while the comparable five-year fixed rate is 4.09%. Please note, however, that interest rates change continually.

• Customer satisfaction: Nationwide consistently receives high ratings for customer service, with a 4.6/5 rating on Trustpilot.

• Best for: First-time buyers and long-term stability.

Nationwide’s First-Time Buyer Cashback scheme, which offers up to £500 cashback upon completion, is a valuable incentive for first-time buyers. In addition, existing customers can benefit from Nationwide’s deals for loyal customers.

Santander

Santander has remained a top player in the mortgage market thanks to its competitive rates and strong remortgaging options. Known for its quick approvals and smooth application process, Santander is often a go-to lender for those needing to remortgage quickly.

• Interest rates: Santander’s two-year fixed rate for an LTV of 75% and without any booking fees is 4.50%, while the comparable five-year fixed rate is 4.23%. Please note, however, that interest rates change continually.

• Customer satisfaction: With a 4.5/5 rating on Trustpilot, Santander is praised for its simple digital application process and responsive customer service.

• Best for: Remortgaging and competitive tracker rates.

Santander’s online mortgage calculator and streamlined application process have garnered positive feedback from customers. They also offer attractive tracker mortgage products, which might appeal to borrowers who are expecting interest rates to decrease in the coming years.  

Lloyds Bank

Lloyds Bank is one of the UK’s leading high street lenders, offering a variety of mortgage products tailored to different buyer profiles. Lloyds is particularly competitive for borrowers with larger deposits, which can unlock some of the lowest rates available in the market.

• Interest rates: Lloyds’ two-year fixed rate for an LTV of 75% and without any booking fees is 4.65%, while the comparable five-year fixed rate is 4.09%. Please note, however, that interest rates change continually.

• Customer satisfaction: Lloyds scores 4.4/5 on Trustpilot, with customers praising the lender’s communication and support throughout the application process.

• Best for: Home movers and those with larger deposits.

One of Lloyds’ products is its Lend a Hand mortgage, which allows first-time buyers to use family savings as security rather than providing a large upfront deposit. This innovative product is popular with younger buyers who may struggle to save a traditional deposit.

Barclays

Barclays remains a top lender thanks to its wide product range and competitive tracker rates. In particular, Barclays’ offset mortgages, which allow borrowers to link savings accounts to their mortgage, can offer significant long-term interest savings.

• Interest rates: Barclays’ two-year fixed rate for an LTV of 75% and without any booking fees is 4.58%, while the comparable five-year fixed rate is 4.05%. Please note, however, that interest rates change continually.

• Customer satisfaction: Barclays has a 4.3/5 rating on Trustpilot, with customers highlighting its comprehensive product range and helpful mortgage advisors.

• Best for: Offset mortgages and tracker deals.

Barclays’ offset mortgage remains one of its most popular products, allowing homeowners to save on interest payments by linking savings accounts to their mortgage balance. This is especially beneficial for those with significant savings who want to reduce their mortgage costs.

Key Considerations When Comparing Mortgage Lenders

When comparing mortgage lenders, it may be advisable to look beyond just the interest rate. Other factors, such as fees, flexibility and customer service can also have an impact on the cost and experience of a mortgage. Below are some considerations:

• Interest Rates: While short term fixed mortgage rates provide stability, variable or tracker mortgage rates can be beneficial if rates fall and risky if rates rise. Fixed rates are usually subject to early repayment charges, whereas tracker rates are usually not. Compare the different rates on offer for different durations, and weigh these against your financial requirements and expectations about the direction of future interest rates. It may also be worth considering offset mortgages if you have significant savings.

• Fees: Arrangement, valuation and legal fees can all add to the cost of a mortgage. Some lenders offer deals on fees. It may be worth considering these, even if the interest rates are slightly higher.

• Customer Service: Lenders with high customer satisfaction ratings tend to provide a smoother application process. Trustpilot, Which? and other independent review sites are great resources to gauge the overall experience with a lender.

• Repayment Flexibility: If you plan to make overpayments or pay off your mortgage early, check whether the lender allows penalty-free overpayments. This could potentially save you a considerable amount in interest, over time.

Conclusion: Securing the Best Mortgage

As of mid-September 2024, the average two-year fixed mortgage rate for a loan-to-value ratio (LTV) of 75% was 4.78%, while the average five-year fixed mortgage rate for the same LTV was 4.44%. Mortgage rates can, of course, fluctuate continually. While such rates may seem high compared to the sub-2% deals seen until just two to three years ago, rate have stabilised, nevertheless, after several aggressive increases.

HSBC, Nationwide, Santander, Lloyds and Barclays all rank among the top mortgage lenders in 2024, offering competitive rates, flexible options and high customer satisfaction. While short term fixed mortgage rates provide stability, variable or tracker mortgage rates can be beneficial if rates fall and risky if rates rise. Compare the different types of rates offered for different durations, and weigh these against your financial requirements and expectations about the direction of future interest rates.

It may be advisable to consult a mortgage advisor to ensure you stay informed about market changes and find the best deal for your financial situation.