Mortgage Lenders Near Taunton Somerset: Your Complete Guide to Finding the Best Lender

Last Updated: January 2025 | Reading Time: 8 minutes

Finding the right mortgage lender in Taunton can make a huge difference to your monthly payments and overall mortgage cost. This comprehensive guide covers everything you need to know about mortgage lenders serving Taunton and Somerset, from high street banks to specialist providers.

Types of Mortgage Lenders Available in Taunton

High Street Banks

Major banks with branches in Taunton and Somerset include Lloyds, Barclays, NatWest, HSBC, and Santander. They offer:

• Face-to-face service in Taunton
• Relationship building with existing customers
• Competitive rates for those with good credit
• Wide range of mortgage products

Building Societies

Building societies like Nationwide, Coventry BS, and Yorkshire BS often offer competitive rates and personalized service. They may be more flexible for complex cases.

Specialist Lenders

These lenders focus on specific situations like:

• Self-employed mortgages
• Bad credit mortgages
• Buy-to-let mortgages
• Non-standard property mortgages

Online and Challenger Banks

Digital-first lenders like Virgin Money, First Direct, and newer challengers often offer competitive rates with streamlined online applications.

How Many Lenders Should You Compare?

The average person applying directly might compare 3-5 lenders. However, working with the best mortgage brokers in Taunton gives you access to 90+ lenders, including:

• All major high street banks
• Building societies across the UK
• Specialist lenders not available to the public
• Exclusive broker-only deals

More choice means better mortgage rates and finding the perfect lender for your specific circumstances.

What Do Mortgage Lenders in Taunton Look For?

1. Credit History

Lenders review your credit score and history. Even with imperfect credit, specialist lenders can help.

2. Income and Employment

Stable employment and sufficient income to afford repayments. Self-employed applicants need 2-3 years of accounts.

3. Deposit Size

Larger deposits unlock better rates. Learn about Taunton mortgage deposit requirements to prepare.

4. Property Type and Location

Standard properties in Taunton are well-regarded. Non-standard properties may need specialist lenders.

5. Loan-to-Value Ratio

The lower your LTV, the better rates you'll access. Find out how much you can borrow based on your circumstances.

Top Mortgage Lenders for Taunton Buyers

Best for First-Time Buyers

Lenders offering excellent first-time buyer mortgages include Nationwide, Halifax, and Santander, with low deposit options and government scheme support.

Best for Remortgaging

Competitive remortgage deals are available from Virgin Money, First Direct, and building societies, often with free legal work and valuations.

Best for Buy-to-Let

Specialist buy-to-let lenders include Paragon, Kent Reliance, and Precise Mortgages, with competitive rates for Taunton landlords.

Best for Self-Employed

Lenders like Aldermore, Kensington, and Bluestone consider 1 year's accounts and offer flexibility for business owners.

Best for Adverse Credit

Specialist lenders such as Pepper Money, Roma Finance, and Foundation Home Loans help those with credit issues.

Exclusive Broker-Only Lender Deals

Many lenders offer exclusive rates and products only through brokers like us. These broker-exclusive deals often feature:

• Lower interest rates (often 0.1-0.3% better)
• Reduced or waived arrangement fees
• Free valuations and legal work
• Higher lending limits
• More flexible criteria

On a £250,000 mortgage, a 0.2% rate improvement saves over £3,000 over a 5-year term!

How to Choose the Right Lender for You

Consider the Total Cost

Don't just focus on the interest rate. Factor in arrangement fees, valuation costs, and early repayment charges.

Match Lender to Your Situation

If you're self-employed, choose lenders known for flexibility. For cheap mortgages in Taunton, consider lenders with low fees and competitive rates.

Check Flexibility

Can you overpay? Make payment holidays? These features matter for your financial flexibility.

Read the Terms Carefully

Understand early repayment charges, what happens after your fixed term, and any restrictions.

Local vs National Lenders: What's Best for Taunton?

Local Lenders and Building Societies

Pros: Personal service, local market knowledge, relationship building

Cons: May have higher rates, fewer products to choose from

National and Online Lenders

Pros: Often better rates, more product choice, advanced online tools

Cons: Less personal service, may not understand Taunton market specifics

Best of both worlds: Work with a local Taunton broker who accesses national lenders, giving you local expertise with national rates.

Understanding Lender Criteria

Standard Lender Criteria

Mainstream lenders typically want:

• Minimum credit score of 620-680
• Maximum LTV of 95% (5% deposit)
• Debt-to-income ratio under 40-45%
• Stable employment (usually 3+ months, 6+ for self-employed)

Specialist Lender Criteria

Specialist lenders consider:

• Applications with CCJs, defaults, or bankruptcies
• Self-employed with 1 year's accounts
• Non-standard properties
• Complex income structures

The Application Process with Different Lenders

Traditional High Street Banks

Timeline: 4-6 weeks typically

Process: Branch visit or online application, documentation review, valuation, underwriting, offer

Building Societies

Timeline: 3-6 weeks typically

Process: Often more personalized, may involve relationship manager

Online Lenders

Timeline: 2-4 weeks typically

Process: Fully digital application, faster automated decisions

Specialist Lenders

Timeline: 4-8 weeks typically

Process: More detailed underwriting, manual assessment of complex cases

Common Lender Mistakes to Avoid

1. Only Approaching One Lender

Your own bank may not offer the best deal. Always compare multiple options.

2. Not Considering Specialist Lenders

If you have unusual circumstances, specialist lenders may be more suitable than high street banks.

3. Multiple Applications Hurting Credit Score

Each application creates a hard credit search. Use a broker to research without damaging your score.

4. Ignoring Broker-Exclusive Deals

Some of the best rates are only available through brokers, not direct to consumers.

How Taunton Mortgages Accesses More Lenders

As independent mortgage advisors in Taunton, we have established relationships with:

• 90+ Lenders: From household names to specialists
• Exclusive Deals: Access to rates not available directly
• Specialist Networks: Connections with niche lenders for complex cases
• New Lender Products: First access to new market entrants and products

Questions to Ask Any Mortgage Lender

1. What is the total cost over the mortgage term? Not just monthly payments
2. What fees are involved? Arrangement, valuation, legal, exit fees
3. Can I overpay without penalties? Usually 10% per year is standard
4. What are the early repayment charges? If you want to move or remortgage early
5. What happens after my fixed term ends? What's the SVR you'll move to?
6. How flexible is the mortgage? Payment holidays, portability, etc.
7. What is your service like? Online access, customer service availability

New Lenders Entering the Taunton Market

The mortgage market is constantly evolving. Recent years have seen new lenders offering innovative products:

• Green mortgages with preferential rates for energy-efficient homes
• Digital-first lenders with faster processing times
• Specialist lenders for modern work patterns (gig economy, contractors)
• Lenders offering longer fixed terms (10-15 years)

Staying connected to new market entrants ensures you access the latest competitive deals.

Frequently Asked Questions

Which mortgage lender is best in Taunton?

There's no single "best" lender - it depends on your circumstances. The best lender for you might be different from someone else. That's why we compare 90+ lenders to find your perfect match.

Can I get a mortgage from a lender outside Somerset?

Absolutely! Most lenders operate UK-wide. Geographic location rarely limits your lender choices for standard properties in Taunton.

Do I need to use a lender with a branch in Taunton?

No. Most mortgage applications are now processed remotely, even with high street banks. Physical branches are less important than finding the best rate and service.

How many lenders should I apply to?

Don't apply to multiple lenders yourself - this damages your credit score. Work with a broker who researches all options and makes one strategic application.

Ready to Find Your Perfect Lender?

Don't waste time approaching lenders individually or settling for your bank's first offer. Our whole-of-market service compares every available option to find you the best deal.

Get started with Taunton's mortgage experts:

• Compare 90+ lenders in minutes
• Access exclusive broker-only deals
• Get matched to the perfect lender for your situation
• Receive expert guidance through your application
• Completely fee-free service