Looking for the best mortgage deal in July 2020? There is some good news for prospective home owners this month: as the property market is now fully open, lenders are once again approving mortgages, including on first homes.
Having said that, most mortgage deals on 90 and 95 per cent mortgages have been (temporarily) pulled from the market in anticipation of a property market slowdown. You currently need a 15 per cent deposit or larger to access most available mortgage deals.
With the help of the online mortgage comparison tool developed by our partners Habito below, you'll be able to compare different mortgage deals from a representative selection of mortgage lenders. Just because there are fewer mortgage deals out there doesn't mean you shouldn't look for the best one for you.
Have a go at comparing different deals by inputting basic details such as your deposit, property price, and whether you want a fixed rate or variable mortgage. Then, read more about finding the best mortgage deal with Habito.
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.
Can I still find a mortgage deal with a smaller deposit?
It is still technically possible (although in practice your options will be very limited) to get mortgages with a 10 per cent deposit – or even five, though only if you're going down the Help to Buy route. However, you won't find the best possible mortgage deal in this mortgage bracket. Last time we checked, the HSBC 90 per cent mortgage for first-time buyers offered a fixed rate of 3.09 per cent – more than double the cheapest deals available on mortgages with 80 LTV and lower.
I've found a mortgage deal: what do I do now?
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. Don't worry: you won't be applying for a mortgage without receiving proper advice, and you will get to speak to a person.
Bear in mind that once Habito have helped you identify the best mortgage deal for you and looked over your application, you will be submitting it yourself to the lender. If you don't want to do this, there is the Habito Plus service that takes care of the entire process, including evaluations, for you.
There's also the Habito Go service which essentially give you your own buying agent who will negotiate the house purchase on your behalf, as well as find you a mortgage deal and doing all the paperwork.
Remortgaging: is it possible right now?
Yes – despite the problems faced by the property market due to Covid-19, remortgaging is still possible, with most lenders having reintroduced remortgaging deals back onto the market. Valuations and viewings are now also allowed, so you shouldn't have any trouble going ahead.
Finding the best mortgage deal: how much deposit do I need?
Ordinarily, we would say that the minimum deposit you need is five per cent, while good mortgage deals start at 25 per cent deposit and over. However, right now, 15 per cent is looking like the minimum you'd need to qualify for a new mortgage product, and some lenders are requiring a 25 or even 40 per cent deposit.
It is important to note that while these increased deposit requirements make getting a mortgage more difficult right now, mortgages have not been pulled from the market, if you are able to put together a larger deposit.
Remortgaging isn't affected, and you can still get remortgage deals with a higher LTV.
- More about remortgaging in our guide