The best mortgage rates and deals in March 2020

After the best mortgage rates and deals this March? It's now or never to get the best mortgage deal ever

find the best mortgage rates and deal
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Looking for the best mortgage rates in March 2020? While this is a stressful time to be looking for a home and mortgage, let us assure you: in terms of getting a mortgage, now is actually a very good time to learn the language of mortgages so that you can secure the best possible deal. Our guide will help you learn to look for the right things – beyond simply looking at the interest rates.

Mortgages come with different terms, conditions, and fees, and it's how these factors work together that can allow you to get the best possible mortgage deal to suit your circumstances. 

Whether you are about to take out your first mortgage, remortgage your current home, or just want to see if you could secure a better rate, use the online mortgage calculator form below to compare mortgages from top lenders. You can also search for buy to let mortgages if you're planning to buy a house to let out. 

Habito will engage in an online chat with you, advising you on the next stages, helping you assess affordability and give you impartial advice to ensure you get the best deal for you. Use their mortgage comparison calculator below to find the best mortgage for you. 

Please note: Habito is an online mortgage broker and whole of market lender so they will assess the best deals available and work out which works for you. We have an affiliate relation with Habito and take a small percentage of commission for referring you to them.

Interest rate cut and coronavirus: why March 2020 is the best time to find a great mortgage deal

This is an unprecedented time for the housing market in general, and the mortgage market is no exception. With the coronavirus pandemic taking hold in the UK, the Bank of England has responded by a second interest cut in a month, bringing the base rate to an all-time low of 0.1 per cent. 

This will inevitably have an effect on mortgage rates, with variable mortgages offering the most immediately savings, although fixed term mortgages are likely to follow suit soon. If all that separates you from completing that coveted house purchase is getting a mortgage agreement, now is the time to look for a deal.

Mortgages and coronavirus: what is the impact?

The truth is that we still don't know what impact the coronavirus outbreak will have on the property market, or on mortgage rates. The base interest rate has already been cut very low to try and mitigate the economic impact of the pandemic, and it remains to be seen what further financial measures will come into place a few months down the line.

What we do know is that existing mortgage payers can expect understanding from the vast majority of mortgage providers, many of which have actively pledged to allow for payment deferrals and credit card limit extensions for anyone affected by Covid-19. 

What is the best time of year to get a mortgage?

There are several questions to consider here, but the most important ones are: are you a first-time buyer or remortgaging, and what type of home are you considering? 

If you are a first-time buyer, these last few weeks of winter are very important. Even with the reported housing market bounce-back, it's still relatively slow in comparison to spring. If you want more negotiating power to get the lowest price on the home you want (and therefore a smaller mortgage loan), then the last two weeks of February are a great time to secure that house purchase.

Wait until mid-March, on the other hand, and you will see a different landscape, with its own advantages and drawbacks. The property market traditionally gets busier with the arrival of spring – this is when families begin looking at homes with the aim of moving during the summer holidays. If you're after a family home, you'll have more choice – but be prepared to have little if any bargaining power. In that sense, those remortgaging to a larger home are in a better position.  

If you are a first-time buyer looking to buy a smaller home (a one-bed flat, for example), you have the luxury of February and March being similar in terms of prices and what's on offer – but we wouldn't advise leaving it until late spring/summer when competition is generally stiff for any type of property. 

In short: there is no particular time of year that's necessarily better to apply for the mortgage itself, but your house hunt and your mortgage application are inevitably interconnected; the quicker and easier you are able to find an affordable property, the better the mortgage deal you'll be able to get.

Finding the best mortgage rates: the importance of the deposit

If there is just one useful thing to know when looking for a mortage, it is this: the bigger your deposit, the better the deal you'll get. This is true always, with any lender. The very best mortgage rates are only available to buyers with deposits of over 25 to 30 per cent (and 40 will get you the cream of the crop of mortgage deals). We strongly recommend trying to save up for a slightly bigger deposit, even 15 per cent rather than 10, before applying for a mortgage. Remember: the smaller your loan, the better the rate. If you only have a small amount saved up and really want to own a home soon, consider government equity loan schemes such as Help to Buy

How to find the best remortgage deal

The answer is: start looking as far in advance of switching lenders as you can, and keep a lookout. Remortgaging only ever makes sense if it's going to be financially beneficial; for example, if your current lender is going to charge you an exit fee, you'll want to make sure that your new repayment plan is worth that penalty. Conversely, if you see a great fixed-term deal that'll allow to start saving (for example), exit fees notwithstanding, go for it. 

Finding the best holiday let mortgage deal

With the staycation trend booming, you might be thinking about taking out a holiday let mortgage. Finding the best mortgage rates for this type of mortgage is very important, because these type of mortgage require bigger deposits and usually come with higher interest rates. They can be worth it if your holiday let makes a decent return, but you'll want to make sure you're on the best possible rate to maximise the property's potential. 

How to find the best mortgage deal if you're self employed

Accessing the best mortgage rates if you're self employed will hinge on three things: how much you have saved for a deposit, your earnings, and your record keeping. Needless to say, all three need to be up to scratch, and the more you have on all three fronts, the more likely you are to get a good deal on your mortgage. Mortgage lenders dislike applications they deem to be high risk, and you want to convince them that, even though you are self employed, you're financially stable. 

Find out more about self employed mortgages in our guide. 

How to find the best guarantor mortgage

Guarantor mortgages are the new crop of what used to be called 100 per cent mortgages, and they do allow you to get a mortgage without a deposit – if you have family who are able and willing to keep some of their savings in an ISA account for a few years. The differences between the different products available are mainly about the interest rates on the savings and the number of years the money will need to be used as the guarantee on your mortgage. Find our more in our guide to guarantor mortgages

Is a fixed-term mortgage always the best deal?

Fixed-term mortgages are very, very popular right now, and with good reason: they allow you to fix your interest rate for one, two, or five years, and in some cases even longer. But is this type of deal always the best one? The answer depends mainly on what your plans are for the near future: if your first house purchase is not the home you're planning on staying in for a long time, be careful with long fixed-term mortgage deals, as they almost always come with a financial penalty for an early exit.