Best mortgage lenders 2024

Which are the best mortgage lenders?

Which? surveyed thousands of mortgage holders in July 2023 to find out how satisfied they were with their providers - whether bank or building socity.

We asked them to rate the banks and building societies on a range of measures, from the application process to the ease of banking online and customer service.

Our experts also analysed thousands of mortgages over a four-week period in August 2023 to find which lenders offered market-leading rates most often.

The table reveals how homeowners rated 22 mortgage providers and the three lenders that have been named Which? Recommended Providers (WRPs). 

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What makes a lender a Which? Recommended Provider?

In order to be named a Which? Recommended Provider, mortgage lenders must:

• achieve a top customer score
• consistently offer table-topping mortgage deals on various product types 
• be fully covered by the Financial Services Compensation Scheme and Financial Conduct Authority banking standards regime

You can find out more about our deal analysis, and how each lender performed, in our individual mortgage lender reviews (see links on right).

• Find out more: best mortgage rates

Which? Recommended Providers in detail

We've awarded three lenders Which? Recommended Provider status: Nationwide, Skipton and Yorkshire Building Society. Here's why:

Nationwide Building Society

The UK's largest building society - and second-largest mortgage provider - achieved the joint-highest customer score of 78%. Customers gave it five stars out of five for transparency of charges and its overall customer service.

Nationwide scored a decent four stars for keeping you informed, clarity and flexibility of statements, and online access. Its only three-star rating was for value for money (which incorporates rates and additional fees).

Our analysis of rates found Nationwide tends to offer slightly above-average deals compared with other lenders, ranking ninth out of 22.

Skipton Building Society

Skipton Building Society earned the joint-highest customer score along with Nationwide.

It also received five stars for its customer service and transparency of charges, and was one of only two lenders that scored four or five stars across every category we looked at.

Skipton is the sixth-most competitive lender when it comes to mortgage rates, according to our analysis.

It is the only WRP not to be one of the top 10 largest providers in the UK - it was the 11th largest in 2022, according to UK Finance.

Yorkshire Building Society

Yorkshire Building Society earned a strong customer score of 75%, placing it third of 22 brands. 

Like Skipton, it won four or five-star ratings across the board from its customers.

In our analysis, YBS offered the third-highest number of market-leading rates over the month-long period we looked at. It was only beaten by HSBC and Virgin Money, which both missed out on WRP status due to their below-average customer scores.

Mortgages from Yorkshire BS are only available directly through the building society, meaning you would need to apply yourself rather than using a broker. If you'd rather use a mortgage broker, Accord Mortgages is Yorkshire's intermediary arm.

Worst mortgage providers

Five lenders earned customer scores lower than 60%, putting them at the bottom of our rankings.

Customers didn't rate Metro Bank or the Co-operative Bank at all highly.

Nor were they impressed by specialist lenders Aldermore, Family Building Society or Kensington. However, it's worth bearing in mind that specialist lenders offer mortgages to borrowers who don't meet the lending requirements of mainstream providers, meaning higher-than-average rates are very common.

Which are the biggest mortgage lenders in the UK?

According to data from UK Finance, the largest mortgage lenders in 2022 were as follows. Links take you to our reviews of each provider:

• Lloyds Banking Group (which includes Lloyds Bank and Halifax)
• Nationwide Building Society 
• NatWest Group (includes RBS)
• Santander
• Barclays
• HSBC
• Virgin Money 
• Coventry Building Society
• Yorkshire Building Society
• TSB

choosing a major lender can have some advantages - for example, they often offer an extensive range of products and have more branches available.

But you don't need to go with one of the big players just because you recognise the name, or you're already a customer. Smaller lenders, including building societies, may offer tailored products that better suit your particular circumstances.

• Find out more: applying for a mortgage

How to choose the best mortgage lender for you

Although our Which? Recommended Providers are great all-rounders, the best mortgage lender for you will depend on your individual circumstances.

For example, some lenders are more willing to give mortgages to self-employed homebuyers, while others specialise in guarantor mortgages or solutions for people with a low credit rating.

The best lender for you won't simply be determined by who is offering the lowest interest rate or the biggest mortgage.

Identifying the most appropriate type of mortgage is crucial to make sure the mortgage meets your needs.

You should also check the fees that are attached to the deal, as these can add thousands to what you'll pay overall.

If you're struggling to understand which lender is worth going for, you should consider taking advice from an independent, whole-of-market mortgage broker before applying.

• Find out more: finding the best mortgage deals

How mortgage providers decide how much to lend you

When buying a property, it's not just the deposit you need to think about but also the size of mortgage you can get.

Lenders have to stick to strict mortgage affordability rules, which means they have to lend responsibly and ensure you can afford to repay the loan, both today and in the future when rates could go up.

How much can I borrow?

The amount you can borrow will be based on your income, whether you have any dependents and certain outgoings such as monthly repayments on credit cards and other loans.

Lenders usually perform an affordability assessment and check your credit history to decide how much they can lend you.

As a general rule of thumb, lenders usually allow you to borrow up to four-and-a-half times your income, but this can vary greatly depending on the provider you use and their lending criteria.

For example, some lenders will offer higher income multiples to people with higher earnings, those borrowing at a low loan to value (LTV), or those with secure jobs in specific industries.

This means there can be a difference of tens of thousands of pounds between how much different lenders will let you borrow, and you won't really know how much you can get from a particular lender until you apply and undergo a full credit check and mortgage affordability assessment.

But it's worth talking to a mortgage broker before applying for a mortgage. They will be able to advise roughly how much you could borrow, as well as which lenders are most likely to accept you.

• Work out how much you can borrow
• Remortgaging to release cash from your home
• Pros and cons of equity release