Best Mortgage Interest Rates In Scotland Compared

Some UK lenders don’t provide mortgages on properties located in Scotland. So, it can be frustrating for Scottish buyers to see a rate advertised online that isn’t available in their area.

Fortunately, many of the UK’s best mortgage rates are also available to Scottish customers, and there is an easy way to find them. We’ll explain why there are differences between Scotland and the rest of the UK and how to compare mortgages in Scotland.

The table below provides an illustration of some of the best rates currently available for a mortgage on a property in Scotland.

The rates quoted above were correct at the time of writing (April 2023) and are subject to change at any time at the lender’s discretion. Speaking to a mortgage broker is the best way to keep track of the rates available at any given time.

Are mortgage rates in Scotland the same as in the rest of the UK?

Any lender that offers mortgages in Scotland will offer the same rates as they do in the rest of the UK. However, not all UK lenders offer mortgages in Scotland; nearly half only offer mortgages in England and Wales. The lenders who operate in Scotland don’t necessarily offer mortgages in all regions – some exclude the highlands and islands.

So, buyers in Scotland don’t have access to the full range of mortgage rates that buyers in other areas of the UK do. That can make it more difficult to compare mortgages, but it doesn’t have to prevent you from finding a great deal.

How to find the best Scottish mortgage rate

Rather than searching online for the best mortgage rates and then checking whether each one is offered in Scotland, you can speak to a broker who specialises in Scottish mortgages. They’ll already know which lenders offer mortgages in your area, which of those you’re likely to qualify for, and which of those will offer the best rate.

They can also offer advice on other aspects of mortgages, such as whether to choose a fixed or variable rate, how long you should set your mortgage term to optimise your repayments, and whether there are any buying schemes open to you. To speak to a specialist in Scottish mortgages, get in touch.

Best remortgage rates in Scotland

In general, you’ll find that lenders offer the same rates to remortgage customers as they do to other customers (assuming that the loan-to-value, mortgage type, etc. are the same). However, in a handful of cases, you’ll find that a lender offers a slightly better deal to remortgage customers.

For example:

• TSB offers movers and first-time buyers a two-year fixed-rate, 60% LTV mortgage at 4.54% while remortgage customers could be eligible for a rate of 4.44% on the same terms
• Accord Mortgages offers homebuyers a five-year fixed-rate, 60% LTV mortgage at 4.23%, while remortgage customers could be eligible for a rate of 4.18%
• Scottish Widows offer the same rates to all customers, but remortgage customers can get a free valuation and either free legal fees or £300 cashback

Bear in mind that a deal that’s specific to remortgage customers isn’t necessarily the cheapest mortgage for you. You should compare these deals to all the others currently on the market.

Rates for first-time buyers

First-time buyers often don’t qualify for the best mortgage rates in Scotland because they need a high LTV (i.e. a 90% or 95% mortgage), whereas home-movers and people who are remortgaging will have built up equity in their home over time and will typically need a lower LTV.

Around a quarter of lenders in Scotland don’t offer these high-LTV mortgages, which means that first-time buyers often have fewer options to choose from.

Here are some of the deals that are currently available:

• Penrith Building Society offers a two-year discounted, 90% LTV mortgage at 4.49%
• Virgin Money offers a five-year fixed, 95% LTV mortgage at 5.09%
• HSBC exclusively offers first-time buyers a two-year fixed, 90% LTV mortgage at 5.36%

Best buy-to-let mortgage rates

The market for buy-to-let mortgages in Scotland is slightly smaller than the residential mortgage market. Rates are slightly higher, as they are across the UK. Here are some of the best available rates at the time of writing, based on a 70% LTV, interest-only mortgage:

• Barclays five-year, fixed-rate mortgage at 4.65%
• HSBC two-year, tracker mortgage at 4.69%
• Virgin Money 10-year, fixed-rate mortgage at 4.69%

All of the rates quoted above – remortgage rates, first-time buyers and buy-to-let mortgages – were correct at the time of writing (April 2023) and are subject to change at any time at the lender’s discretion. Speaking to a mortgage broker is the best way to keep track of the rates available at any given time.

Why Use Online Money Advisor

Whether you’re a first-time buyer, home mover, remortgaging, or a buy-to-let investor, the easiest way to compare mortgages in Scotland and find the best rates is to speak to a broker – that’s where we can help!

If you’d like to find a broker who’s knowledgeable about mortgages in Scotland, we can match you with one of the numerous specialists we work with. You just need to call us on 0808 189 0463 or make an enquiry.