It is difficult to determine which mortgage lender is the best due to the market’s seemingly endless number of lenders and vast variety of interest rates each offers. Obviously, what is best for you may not be best for someone else. It’s difficult to quantify the term “best” because it has different meanings for different people.
Your preferred mortgage lender should be the provider for whom you meet all of their criteria and who offers the most suitable programme for your needs.
As all lenders have a wide variety of varying criteria, we deemed it useful to list a few lenders and some of their distinctive selling points. This doesn’t necessarily mean they’re the greatest, but it does give an idea of who may help you given your circumstances.
Halifax
Given that Halifax is a member of the Lloyds Banking Group, which has the largest market share in the mortgage industry, you would expect them to be popular. Indeed, they have a wide variety of eligibility requirements, making them suitable for many prospective borrowers.
As a result of their experience lending on a variety of property constructions, Halifax has amassed a vast database of information regarding property types, which they use to their advantage. They have a fairly individualised approach to the type of property. While there will still be specific instances in which they will not lend, they will invariably evaluate any property based on their valuers’ opinions.
They may also be flexible for those who have been self-employed for less than the standard 2-year requirement. In addition to other requirements, if you have at least one year of trading accounts or HMRC submissions, they will consider you for a mortgage.
Nationwide
Nationwide has a strong market reputation for assisting first-time buyers. Typically, they are one of the lenders who participate in government and affordable housing programmes like Shared Ownership. An alternative to the government’s mortgage guarantee scheme is the Deposit Unlock Scheme. Nationwide provide mortgages as part of this scheme.
BM Solutions
BM Solutions specialise in Buy-to-Let mortgages and are owned by Lloyds Banking Group. With this being their only lending area, they are able to concentrate solely on the criteria and products that best suit this sector. Many lenders continue to require a Buy-to-Let applicant to have a personal income of at least £25,000 per year. Whereas, BM Solutions has no minimum income requirements.
BM Solutions is an intermediary-only lender. If you’re considering them for your mortgage, you’ll need to employ the services of a mortgage broker or other professional.
The Mortgage Works (TMW)
Similar to BM Solutions and Lloyds Banking Group, TMW is the Buy-to-Let division of Nationwide. Again, by concentrating solely on BTL mortgages, they can ensure that they remain competitive in numerous markets. Customers with a Buy-to-Let Portfolio fall under this category.
TMW understands the needs of those who see the value in holding multiple Buy-to-Let properties. While their criteria do not guarantee they will be able to assist everyone, they do offer a broad range of options.
Aldermore
Few will recognise Aldermore, but specialist mortgage brokers utilise them often. They possess a well-defined set of standards for those with a bad credit record. Aldermore is particularly suitable for applicants with a “light adverse” credit history e.g., those who have previously encountered problems but are still eligible and sit just outside the reach of being accepted with the more recognised high street lenders.
Bluestone
Bluestone excels at providing bad credit mortgages. As with lenders such as Aldermore, they have an excellent understanding of the needs of those with past credit issues.
They establish concrete guidelines so that applicants know their chances of approval if they apply. Bluestone also have a clearly defined structure of interest rates. This is so that applicants will know, depending on the nature and date of their credit issues, what level of interest rate can be obtained.
HSBC
Another significant lender on our list, ranking sixth for market share. The crowning achievement of HSBC is their knowledge of the self-employed and consequently complex business set-ups and accounts.
They are one of the very few lenders who will assess the affordability of limited company directors based on their salary income and share of the company’s net profits. Rather than calculating the maximum loan amount based on salary and dividends, this method can make a substantial difference for some borrowers.
Santander
A first thought when thinking about interest-only mortgages is Santander. Interest-only now occupies such a small portion of the mortgage market, as so few lenders will even consider it. Having access to a lender with relatively flexible criteria and typically competitive interest rates makes Santander an attractive option.
NatWest
NatWest is a lender that offers a diverse and flexible approach to a variety of circumstances. However, their consideration for those on a Tier 2 Visa stands out as particularly advantageous to our clients. Maximum loan-to-value (LTV) regulations still apply for Tier 2 Visa applicants/foreign nationals. However, Nationwide’s criteria gives them the ability to help where other lenders wouldn’t.
It’s not a guarantee that a lender will offer you a mortgage if you know who they’re flexible about assisting in principle.
The Mortgage Centres
Okay, we are not actual lenders, but we couldn’t leave ourselves off this list when discussing the best companies and unique selling propositions. We have access to more than 90 lenders, who offer approximately 12,000 mortgages.
Knowing that a lender may in principle, be able to assist you based on who they may be more flexible in assisting, is not a guarantee that they will offer you a mortgage. Even if you satisfy a single stipulation of their rules, you will still be required to satisfy a substantial number of other criteria.
Using the services of a broker such as ourselves can save a great deal of time. It will hopefully enable your application and circumstances to be presented to the lender in the most favourable light possible, giving you the best possible chance of approval.
Consequently, you can obtain the scheme that best meets your needs. This ultimately ensures that you feel as though you have arranged your mortgage with the best UK mortgage lender.
Get in touch today to answer any other questions you may have.
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