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10 tips for sorting a cheap mortgage for first-time buyers & remortgagers
Martin: The Mortgage Dilemma! Fixes under 5% are now limited, and more rises are possible. What do you do? 

Martin: While the days of super-cheap mortgages feel like a different time, there were still five-year fixed rate mortgages below 2% on offer in early 2022, meaning for many, the end of those deals is in sight. If so, unfortunately, as our mortgage comparison shows, you're likely to face a substantial rise in the rate you pay. 

Similar is true for many people coming off existing deals. Rates have rocketed over recent years, and we've seen that accelerate this year - hitting remortgagers and first-time buyers alike. So let me take you through the lay of the land and what to do. Below I've 10 tips for sorting a new mortgage. For more, I'll be talking you through it and taking questions tonight (Tue) at 7.15pm on ITV's The Martin Lewis Money Show Live (watch back after on ITVX).

What comes next for mortgage rates? The markets are factoring in the Bank of England increasing the UK base rate four times over the next year, taking it from the current 3.75% to 4.75% - though some economists think that's overdone. So do remember (remember, remember), the first rise is predicted on the 5 November. 

• New fixed deals already factor in some of that predicted rise. Look at the recent times in the graph above and you'll see that while the base rate hasn't moved, the rate you can fix at has shot up about 1% over the last six months. That's because the market's view of future rates, called 'swap rates', is mostly what fixes are priced on. So market sentiment about the future has a real impact on prices today.
  
  And this takes some getting your head around. It means if the UK base rate rises, as expected, we wouldn't expect to see fixed rates rise that much, as most of the rise is already baked in. If it rises by less than expected, then we could even see fixed rates edge down, as sentiment over future rates drops. If it rises more than expected, they'll rise. The current cheapest fixes are 2yrs at 4.78% and 5yrs at 4.95%.
  
  
• Variable and tracker mortgages will rise if rates rise, but there's room for that with the cheap ones. If you get a variable rate mortgage or one that tracks the base rate, then they are more closely - or exactly - tied to base rates. Currently, the cheapest tracker is 0.25% above base rates for two years (so currently 3.99%) or 0.6% above for five years (so 4.35%). What that shows, though, is if you hope rates will come down in a couple of years and don't need the security of a fix, a cheap tracker now has room to rise and still undercut fixes. 

For far more on this, we asked four mortgage brokers: Is now the time to fix or go for a tracker?

Not all apply to both first-timers and remortgagers (those with existing mortgages looking for new deals). So it's colour-coded...

- First-time buyer tips have a FTB at the start. Better, read our full 1st-time buyers' 53-page PDF booklet. Plus, if you're saving for a deposit for your home, do look at our Top LISAs guide, as you may be able to get up to £1,000/yr extra towards it.

- Remortgage tips have a RMTG at the start. Better, read our full Remortgage 58-page PDF booklet.

1) With rates rising, SIX MONTHS before your deal ends, see if you can grab a new one as 'insurance'.
 RMTG When your current deal ends, do nothing and you'll usually automatically go on your lender's Standard Variable Rate, which currently average around 6.5% (and will rise if base rates do) - so you don't want that. No surprise then, a few weeks ago this 'mortgage deal ending within six months? Check this!' clip from This Morning grabbed millions of views. 

Many lenders let you lock in a new fix months before it's needed. For deals with new lenders, it's up to six months ahead. For product transfers (switching deals with your existing lender), three months is common. Product transfers are an easy start point as they set a good benchmark, so you know what others need to beat, and they can have lower fees. But check both.

The key to these offers is that it means you've got a deal in the bank in case rates get even worse. If rates fall so cheaper fixes are available, you can usually just ditch the deal for a new one, as long as it's 14 days before the start date (though do check). Full help & questions on fees in how to book in an early deal - and this is really something to speak to a mortgage broker about.

PS. First-time buyer? You should be thinking about sorting your mortgage six months before it's needed too.

2) Quick financial checks so you don't damage your mortgage chances.
 FTB RMTG Ideally, several months before getting a mortgage deal (or ASAP if you're past that) start trying to make yourself more financially fanciable to lenders. See the full 18 boost your mortgage chances tips. Key ones include:

- Ensure you're on the electoral roll (registered to vote) as lenders use this as an ID check. Don't worry, to stop marketing just opt out of the 'open register'. For more, including what to do if you're a foreign national, see our electoral roll help.
- Limit credit applications. In the few months before getting a mortgage, don't switch bank & minimise new credit applications.
- Stay out of your overdraft. Some lenders aren't too tolerant of you being overdrawn in the last three months.
- Always pay your bills on time, obviously. 
- If you're a new borrower or looking to get a new home, see our How much can I borrow? calculator.

3) Understand the single biggest factor that dictates your mortgage rate. 
 FTB RMTG This is all about your Loan-To-Value (LTV). It is a measure of how much you are borrowing as a proportion of your home's current value. And the LOWER your LTV, the lower mortgage rates tend to be, so the cheaper the deal.

- FTB: Your LTV is dictated by your deposit, eg, a 10% deposit is a 90% LTV, as that's the amount you'll borrow.
- RMTG: It's about your mortgage-to-home value, eg, a £175,000 mortgage on a house now worth £350,000 is a 50% LTV (so if your home's value's risen since you last got a mortgage, your LTV is likely lower). 

The gain from a lower LTV can be at every 5% threshold, but there is often, though not always, a bigger impact at 90%, 85%, 80%, 75% and 60%. Once you're borrowing under 60%, it tends not to improve. Crucially, remember a 9% deposit, while equivalent to a 91% LTV, only gets you a 95% LTV mortgage. You need to go beyond a threshold to hit it, so pushing a little more deposit can make a real difference. Use our mortgage comparison to see the impact for yourself, but as an illustration...

Of course, some of the cost decrease in that chart is due to the fact you're borrowing less. Even if we strip that out though - so we look at someone borrowing a fixed £200,000 at progressively lower LTVs (ie, on higher value homes) - the change from 95% LTV to 60% LTV would save you over £500 a year. 

4) Get prepped by understanding your current deal properly.
RMTG If you're switching deals, as well as knowing your LTV, gathering the following information about your current deal will help you to work out whether the new deals you're looking at are any good:

- What's the rate? Plus, note monthly repayments.
- How much do you still owe? What's your outstanding mortgage balance?
- What type is it? Fix, tracker or Standard Variable Rate?
- When's the intro deal over? Eg, when does your fix end?
- What's the term (when must it all be repaid)? In 10, 20 or 25 years?
- Will you be penalised to switch deals? Does your fix or tracker have an early-repayment charge?

5) Do a comparison to find out which deals are available.
FTB RMTG  Some sample rates are below, but for a proper view, see our mortgage best-buy comparison tool:  

6) Yet what really matters, is the best rate YOU'LL get. Two KEY factors determine this. 
FTB RMTG Finding the cheapest mortgage deal on a comparison is straightforward, but a more difficult consideration is whether you'll be accepted for it. This is especially important if you're a first-time buyer or remortgaging to a new lender.

• Affordability score. Lenders carry out strict checks to see if you can afford mortgage repayments on top of your other expenses. They 'stress test' how you'd cope if interest rates went up (there's no firm rule about how high lenders must stress test by, but typically lenders test something above their current Standard Variable Rate, typically 6-7%), meaning you'll need extra leeway in your finances.
  
  Our free MSE Credit Club Mortgage Affordability Score will help estimate how you're doing. If you're struggling with affordability, as lenders use a mix of the information you provide (credit data, and sometimes bank statements or Open Banking data), it may be possible to help yourself by cutting back on non-essential spending and reducing your outgoings in the six-month run-up to your application.
  
  
• Credit score. A poor credit history can scupper a mortgage or remortgage application. So check your credit file (for free) to ensure there are no errors, then minimise other credit applications, and pay down debts if you can. The MSE Credit Club will help you through this, including your credit file, a credit-score assessment and bespoke tips on what you can do to improve your situation. Also see our 28 tips to boost your credit score guide.
  
  Renter? See how paying rent on time can boost your creditworthiness.  

Yet even if you've done everything right with your credit report and minimised outgoings, know that lenders' acceptance criteria differ, so not every lender will accept you (see point 8).

7) Try to go at least £100 beyond any LTV threshold to ease acceptance.
FTB RMTG  If you've worked hard to get enough together to reach the next LTV band - for instance, 90% or 75% - try to push at least £100 beyond it, or even up to £1,000 if you can. This isn't to reduce the cost, but anecdotally it can make it more likely you will be accepted for a deal, as to mortgage underwriters it might no longer look as if you're scraping to get to the limit (and lenders might not require quite as high creditworthiness).

8) Mortgage brokers are crucial right now - both for finding a deal and easing acceptance.
FTB RMTG A mortgage broker is a regulated adviser who can guide and recommend individual mortgage products to you. That's good for those who aren't sure what they're doing, yet even if you do, brokers also have details of most lenders' acceptance criteria, which are not usually public. So they can help match you to the best deal that will accept you and discuss it with the lender. Additionally, there are sometimes 'broker-only' top deals, and even some product transfers. See our full find a good broker help.

And currently, with a volatile market and interest rates rising, a broker can help you get ahead of the game by securing a rate before it's gone - and a good one will monitor afterwards in case better rates come along before your new mortgage stars.

9) Do your numbers - our Ultimate Mortgage Calculator should help. 
 FTB RMTG Making sure you know what you're getting into, and what'll cost less, is important. We've got a number of powerful tools as part of our Ultimate Mortgage Calculator, including...

Basic mortgage calculator |  Compare two mortgages
Compare fixed-rate mortgages | How much can I borrow?
Saving for a deposit | Overpay v Saving calculator

 10. First-time buyer struggling to get a mortgage?
 FTB While I'd always prefer people to push for a 10% deposit for a better rate, there are 95% LTV mortgages out there as a standard start point. And a few mortgages require even less of a deposit. For example, there's Lloyds' £5,000 deposit mortgage at up to 99% LTV, and Skipton's 'pay rent on time' deal at 100% LTV. It's worth speaking to a mortgage broker. 

When it comes to building up a deposit, some may be able to get help from family, many can get help from a top Lifetime ISA, and others will just have to rely on patience. Though here are a few more options... 

• New, 'Your First Home' (England only). The Govt has announced plans for a Your First Home scheme for first-time buyers in England buying a new-build from a participating developer - even if you've just a 2.5% deposit. It'll work similarly to the old Help to Buy equity loan scheme, in that the Govt will provide you with an equity loan of up to 20%, interest-free at first, enabling you to access cheaper mortgage rates. Price and income caps are expected. Full details and the launch date are expected in The Budget next week, and we'll bring you more when we know.
  
  There is also currently the First Homes scheme for first-time buyers earning less than £80,000/yr (£90,000/yr if in London) where you may be able to get a discount on a new-build property.
  
  
• Shared ownership can help those with a smaller deposit. Here, you own part of a property, and pay rent on the share you don't own (that share is often owned by a housing association, though rents can be expensive). You can then buy a greater share as and when you can afford it. Lots of lenders offer shared-ownership mortgages, though they tend to be more expensive than standard mortgages. A full rundown is in our Shared ownership guide.
  
  
• Can your parents be guarantors? This is where they are on the hook if you can't pay, rather than giving you cash upfront for a deposit. If they have a property (with a good LTV or mortgage-free) or other assets, they may be able to be a guarantor. While it's still your property, their name is on the mortgage. There are two types.
  
  a. The guarantor promises to make your mortgage payments in the event you fail to do so.
  b. The guarantor is a joint applicant and their income forms part of your affordability assessment.
  
  The second type is far more common (sometimes referred to as 'joint borrower, sole proprietor'). Many lenders offer these guarantor mortgages, though the rates tend to be more expensive. See how guarantor mortgages work.
  
  
• Got a family member willing to save with the lender? If you've got a small or no deposit, a few lenders offer a 'Family' mortgage, provided someone will put the equivalent of 10% of the property price into one of their savings accounts as security, and that money will be locked away for a set period (eg, five years). If you don't repay, the helper's security can be kept for longer by the lender, even permanently if the property is repossessed. Mortgage rates are typically more expensive than normal mortgages (eg, if they gave you money for a deposit instead).