What influences mortgage pricing
Mortgage pricing reflects more than the Bank of England base rate. Funding costs, swap rates, competition, capital requirements and a lender’s appetite all play a part.
Headline rate versus total cost
A low advertised rate may carry a substantial fee. Compare the monthly payments, fees and incentives over the period you expect to hold the mortgage.
- Use the same loan amount and comparison period
- Include fees added to the mortgage
- Check early repayment charges and portability
Focus on decisions you can control
Your deposit, credit profile, term and repayment method affect available options. Rates can move quickly; a suitable decision is based on your circumstances, not a prediction presented as certainty.