Cheap Mortgages Taunton: How to Find the Lowest Rates and Save Thousands

Last Updated: January 2025 | Reading Time: 8 minutes

Everyone wants a cheap mortgage, but "cheap" means more than just a low interest rate. The true cost includes fees, terms, and flexibility. This comprehensive guide shows Taunton homebuyers and homeowners how to find genuinely cheap mortgages and save thousands of pounds.

What Makes a Mortgage "Cheap"?

A truly cheap mortgage isn't just about the lowest interest rate. You need to consider:

1. Interest Rate

The annual percentage charged on your borrowing - lower is better for monthly payments.

2. Arrangement Fees

Can be £0 to £2,000+. A low rate with high fees might not be the cheapest overall.

3. Overall Cost

Total interest + fees over the mortgage term = true cost

4. Early Repayment Charges (ERCs)

Penalties for leaving during the fixed term - avoid expensive ERCs if you might move.

5. Valuation and Legal Fees

Some mortgages include free valuations and legal work, reducing upfront costs.

Current Cheap Mortgage Rates in Taunton 2025

The cheapest Taunton mortgage rates for 2025 vary by deposit size:

5% Deposit Mortgages

From 4.9% (subject to criteria) - great for first-time buyers

10% Deposit Mortgages

From 4.5% (subject to criteria) - broader choice, better rates

25% Deposit Mortgages

From 3.9% (subject to criteria) - some of the market's lowest rates

40%+ Deposit Mortgages

From 3.7% (subject to criteria) - exclusive ultra-low rates for large deposits

Note: Rates change daily. We track the market to find you the cheapest current deals.

How to Find Cheap Mortgages in Taunton

1. Improve Your Credit Score

Better credit = cheaper rates. Steps to improve:

• Register on electoral roll
• Pay all bills on time for 6+ months
• Fix errors on credit reports
• Reduce credit card balances
• Don't make multiple credit applications

2. Save a Bigger Deposit

Understanding deposit requirements helps you plan. Each 5% increase in deposit can unlock better rates:

• 5% deposit: Limited choice, higher rates
• 10% deposit: Much better rates available
• 15% deposit: Significant rate improvements
• 20%+ deposit: Access to cheapest deals

3. Use an Independent Broker

As top mortgage brokers in Taunton, we access:

• 90+ lenders including exclusive deals
• Broker-only rates often 0.1-0.3% cheaper
• Fee-free products you won't find direct
• Cashback and incentive deals

4. Compare the True Cost

Don't just look at headline rates. Calculate:

• Total interest over deal period
• All fees and charges
• Value of included benefits (free valuation, legal, cashback)

5. Consider Longer Fixed Terms

5-year fixed rates are often only slightly higher than 2-year deals but lock in cheap rates for longer.

Fee-Free vs Low-Rate Mortgages

Fee-Free Mortgages

Pros:

• No upfront arrangement fees
• Lower initial costs
• Good if you have limited cash

Cons:

• Usually slightly higher interest rates
• May cost more over the term

Low-Rate with Fees

Pros:

• Lower interest rates
• Often cheaper overall
• Fees can be added to mortgage

Cons:

• Higher upfront costs
• Adding fees to mortgage increases total interest

Which is Cheaper?

Example comparison on £200,000 mortgage:

Option A: 4.2% rate + £1,500 fee = £45,800 total cost over 5 years

Option B: 4.5% rate + £0 fee = £46,200 total cost over 5 years

Winner: Low rate with fee saves £400

We calculate this for every deal to ensure you get the genuinely cheapest option.

Cheap Mortgages for Different Situations

First-Time Buyers

Cheapest options for first-time buyers in Taunton:

• 95% LTV government-backed schemes from 4.9%
• Shared Ownership reducing required mortgage size
• Family guarantor mortgages for better rates
• Fee-free products to reduce upfront costs

Remortgaging

Save money with cheap remortgage deals:

• Loyalty doesn't pay - switch for better rates
• Product transfers can be quick but often not cheapest
• Free valuations and legal work from many lenders
• Equity release at cheap rates for home improvements

Buy-to-Let

Competitive buy-to-let rates from specialist lenders:

• From 4.5% for experienced landlords
• Portfolio landlord deals with volume discounts
• Limited company mortgages for tax efficiency

Self-Employed

Cheap mortgages even if you're self-employed:

• Lenders using just 1 year's accounts
• Net profit vs. salary + dividends - we know which to use
• Competitive rates matching employed applicants

How Brokers Find Cheaper Mortgages

Exclusive Broker Deals

Many lenders offer their cheapest rates only through brokers:

• Rates 0.1-0.3% lower than direct applications
• Reduced or waived fees
• Enhanced cashback offers
• Free valuations and legal work

Market Knowledge

Expert mortgage advisors know:

• Which lenders have rate specials this week
• Hidden deals not advertised publicly
• Which lenders are most competitive for your situation
• How to present applications for best rates

Lender Relationships

Established brokers can sometimes negotiate:

• Rate exceptions for strong applications
• Waived fees for bulk business
• Faster processing for better rate locks

Common Cheap Mortgage Mistakes to Avoid

1. Focusing Only on Rate

A 3.9% rate with £2,000 fees might cost more than 4.1% with no fees. Always compare total cost.

2. Ignoring Flexibility

Cheap but inflexible mortgages can cost you later:

• Can't overpay to reduce interest
• Expensive ERCs if you need to move
• Can't port to new property

3. Not Checking Eligibility

Applying for deals you won't get approved for wastes time and damages credit scores.

4. Rushing to Apply

Rates change. Sometimes waiting a few days can save hundreds. We track the market for optimal timing.

5. Choosing Wrong Term Length

2-year deals mean remortgaging soon with potential rate rises. 5-year deals lock in cheap rates longer.

Calculating True Mortgage Cost

Here's how to calculate if a mortgage is truly cheap:

Step 1: Calculate Total Interest

Use a mortgage calculator or we'll do it for you

Step 2: Add All Fees

• Arrangement/product fee
• Valuation fee (if not free)
• Legal fees (if not free)
• Broker fee (£0 with us!)

Step 3: Subtract Benefits

• Cashback offers
• Free valuations (worth £300-500)
• Free legal work (worth £500-1,000)

Step 4: Compare Totals

The lowest total cost = cheapest mortgage

Example Comparison:

Mortgage A:

• Rate: 4.0%, Fee: £999, No freebies
• Total cost over 5 years: £44,250

Mortgage B:

• Rate: 4.2%, Fee: £0, Free valuation (£400), Free legal (£800)
• Total cost over 5 years: £43,850 (£400 cheaper!)

Working with Lenders for Cheap Mortgages

We work with 90+ mortgage lenders to find you the cheapest deals:

High Street Banks

Competitive rates for those with good credit and standard situations

Building Societies

Often cheaper rates for existing savers and members

Online Lenders

Digital-first lenders with low overheads often offer cheapest rates

Specialist Lenders

Competitive rates for complex cases that high street banks decline

Cheap Mortgage Eligibility

To access the cheapest mortgages in Taunton, you typically need:

• Good Credit Score: 700+ for best rates
• Stable Income: 3+ months employment (6+ months self-employed)
• Low Debt-to-Income: Under 40% of income on debts
• Sizeable Deposit: 15%+ for cheapest deals
• Standard Property: Non-standard properties may have higher rates

Don't meet all criteria? We work with lenders offering cheap rates even for imperfect situations.

How Much Can Cheap Mortgages Save You?

The difference between an average and cheap mortgage is significant:

On a £200,000 Mortgage Over 5 Years

• 5.0% rate: £52,700 total interest
• 4.5% rate: £47,000 total interest
• 4.0% rate: £41,800 total interest

Savings from finding cheapest rate: £10,900!

On a £300,000 Mortgage Over 5 Years

• 5.0% rate: £79,050 total interest
• 4.0% rate: £62,700 total interest

Savings: £16,350!

These are real savings that stay in your pocket. That's money for holidays, home improvements, or building savings.

Frequently Asked Questions

What's the cheapest mortgage rate available in Taunton?

Rates change daily, but current cheapest deals start around 3.7% with large deposits. Contact us for today's best rates for your situation.

Should I choose the lowest interest rate?

Not always. Calculate total cost including fees. Sometimes a slightly higher rate with no fees is cheaper overall.

Are online lenders cheaper than high street banks?

Often yes, but not always. We compare all options to find you the genuinely cheapest deal regardless of lender type.

Can I get a cheap mortgage with bad credit?

Yes! Specialist lenders offer competitive rates even with credit issues. They won't be the absolute cheapest, but we'll find the best available for your situation.

How often do mortgage rates change?

Daily! That's why working with a broker who tracks the market ensures you get the cheapest current deal.

Ready to Find Your Cheap Mortgage?

Don't overpay on your mortgage. Our expert team finds the cheapest deals for Taunton homebuyers and homeowners every day.

Get started today:

• Free comparison from 90+ lenders
• Access to exclusive cheap broker deals
• True cost calculation including all fees
• Expert advice on improving your eligibility
• Completely fee-free service - save even more!