So you want to get a mortgage loan? Do you already have lenders to consult with or do you need help finding some? If help is what you need, this article was written with you in mind; because in this article we are going to name the top mortgage lenders in the UK.
Taking out a mortgage, especially for the first time, is a potential minefield and not for the faint of heart. Having said that, provided you get the right advice that is tailored to suit you and not just anybody who is looking for a mortgage, then it should be a rewarding and life changing experience. Below are three mortgage lenders that will help you navigate the mortgage loan steps well-nigh seamlessly.
HSBC
HSBC is one of the UK’s biggest mortgage lenders. Its parent group also owns First Direct and M&S Bank. What makes HSBC and their mortgage products stand out is their variety. Their options include conventional loans, government-backed loans and jumbo loans. More importantly, they are transparent about their mortgage rates.
HSBC offers customers three different mortgage types: fixed rate mortgages, tracker rate mortgages and discount rate mortgages. The fixed rate option sets a fixed mortgage repayment sum that stays the same each month, while the tracker rate mortgage plans use the Bank of England Base Rate to set the interest rate. The discount rate mortgages at HSBC, offer customers a discount off of the bank’s variable rate, so the repayment amount will change depending on the bank’s current rate.
It is important to know that the mortgage rates and plans vary depending on the loan to valuation ratio of the property in question. Other factors include the customer’s personal financial circumstances and credit history. There are also special rates running for first time buyers and existing customers within HSBC’s mortgage plans. According to a 2020 survey by Moneyfacts, HSBC offers consistently great rates. They are also known for lending first-time buyers, home movers and remortgagers 65%, 75% and 85% of their loan-to-value.
If you’re interested in applying for a mortgage with HSBC, there are a few different ways you can get started. You can fill out a short form online and a home loan consultant will contact you to complete a rate quote. You can also call the bank directly and speak with someone if you want a bit more hand-holding through the process.
Once you submit all of your information, a HSBC representative will contact you to finalise the application process. They will give you a checklist of what you’ll need going forward.
Barclays
Barclays is another top-rated UK provider that offers a vast range of mortgage products to suit all individual requirements. Barclays is renowned for being one of the largest UK mortgage providers, in fact in 2019 Barclays was responsible for around 9% of all mortgage deals.
As might be expected, there’s a wide range of mortgage products to choose from. In addition to options for first-time buyers and those looking to remortgage, you will also be able to apply for:
- Buy-to-let Mortgages
- Barclays Green Home Mortgages
- Barclays Family Springboard Mortgages and
- Help-to-buy Mortgages
In September 2020, the average interest rate of a two-year fixed-rate mortgage from Barclays was 1.58%, well below the overall market average of 2.33%. They also lend at 60%, 75%, 80% and 85% loan-to-value to first-time buyers, home movers and remortgagers. You may be interested to know that Barclays offers mortgage overpayment for those who want to repay their loan quicker.
Applying for a mortgage from Barclays doesn’t have to require you to visit a physical branch. Instead, you can make a telephone appointment with a Barclays mortgage advisor 7 days a week. This advisor will get the ball rolling with your application and organise things such as a valuation on the property you’re looking to buy. While you’ll do this all over the phone, you should be able to track and manage your mortgage online once you’ve started your application. Supporting documentation for your mortgage application includes:
- An agreement in principle
- Proof of address
- Photo ID
- Details on any loans, credit card bills or overdrafts
- Details of any insurance policies you have, whether that’s current home insurance or life insurance
- Proof of income (this will differ depending on if you’re in permanent employment or self-employed)
- Your solicitors contact details
- Information on the home you’re hoping to buy, including building type, if it’s a leasehold or freehold, its address and its value
- The bank account details of the account you will be paying your mortgage repayments from
- Contact details of the estate agent or property seller for the property valuation
Remortgages, a buy-to-let mortgage or an interest-only mortgage may require additional documents from the ones listed above.
Lloyds Banking Group
Lloyds Banking Group, according to the Guardian, is the UK’s largest mortgage lender. The bank, which includes Halifax, Bank of Scotland and Scottish Widows, is said to own 19% of the country’s overall mortgage market.
Lloyds Bank is a provider of several government-backed mortgages, including mortgages of up to 95% loan to value for customers who qualify for the Help to Buy Mortgage Guarantee Scheme. The bank also supports the government’s Help To Buy Equity Loan Scheme for qualifying customers. Lastly, they offer a range of traditional mortgage options, with fixed rate, tracker rate, and standard variable rate mortgages available to first time buyers and those moving home. Different rates are also available for customers who already hold an account with Lloyds Bank, and first time buyers looking for a little help to get their foot on the property ladder.
Customers can apply for a mortgage from Lloyds Bank by booking an appointment with a mortgage advisor at their local Lloyds Bank branch, calling to apply over the phone or beginning the application online. Customers can’t receive detailed advice and information from the online application process, so an advisor will call back to continue by phone.
Having seen what HSBC, Barclays and Lloyds Banking Group have to offer; are you unsure which one you should choose? Please contact a Percom Advisor today who will be able to provide additional guidance and answer any questions you may have. In the meantime, you can follow the links within the article for extra research and educational purposes.