bonus

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Welcome offers make the first year you carry a credit card an especially lucrative one. After that, you’ll earn rewards for your spending, but nothing comes close to that influx of points worth potentially hundreds of dollars upon redemption.

However, a card’s terms and conditions might stop you from getting multiple new cardholder bonuses from the same issuer, which is the case for certain American Express cards. If you open a new AmEx card and earn a welcome bonus, you may not be able to earn a bonus from another AmEx-issued card within the same “family” later on.

Here’s how to navigate AmEx application rules when it comes to restrictions on new cardholder welcome offers.

AmEx card ‘families’

It helps to think of cards that offer similar benefits as “families.” A family of cards has a major thing in common, like what rewards currency they earn (travel points or cash back). They may all be part of a rewards program for a specific airline or hotel brand. Within families, you’ll find different tiers of cards. A more premium card will charge a higher annual fee in exchange for more rewards. A no-annual-fee card provides a lower-cost option, but that card won’t offer as many perks.

AmEx cards fall into several families, each with rules about how many bonuses you can get. If you’re ineligible to get a bonus, you’ll get a notification before your application is processed, so you can decide at that point whether or not to proceed.

These are the AmEx card families.

Membership Rewards cards

A number of AmEx cards earn Membership Rewards points, which can be redeemed for travel (including transfers to airline and hotel partners), statement credits, gift cards or purchases at participating merchants. There are two sub-families within this category:

For travel

  • The Platinum Card® from American Express: If you had this card before, or other versions of it including the Platinum Card from American Express Exclusively for Charles Schwab, the Platinum Card from American Express Exclusively for Morgan Stanley or previous versions, you may not be able to qualify for a welcome offer by getting it again.

  • American Express® Gold Card: If you had this card or any versions of The Platinum Card® from American Express before, you may not qualify for a welcome offer.

  • American Express® Green Card: If you had this card, the American Express® Gold Card or any versions of The Platinum Card® from American Express before, you may not qualify for a welcome offer. (All information about the American Express® Green Card has been collected independently and the card is no longer available through NerdWallet.)

  • Terms apply.

For everyday purchases

  • Amex EveryDay® Credit Card: If you had this card or The Amex EveryDay® Preferred Credit Card from American Express before, you may not be eligible for a welcome offer. (All information about the Amex EveryDay® Credit Card has been collected independently and the card is no longer available through NerdWallet.)

  • Terms apply.

Cash-back cards

AmEx issues several cards that earn cash-back rewards. The Blue Cash Preferred® Card from American Express and Blue Cash Everyday® Card from American Express earn elevated rewards in specific spending categories, while the American Express Cash Magnet® Card earns the same rate on all purchases.

  • American Express Cash Magnet® Card: If you had this card, the Blue Cash Preferred® Card from American Express or the Blue Cash Everyday® Card from American Express before, you may not be eligible for a welcome offer. (All information about the American Express Cash Magnet® Card has been collected independently by NerdWallet.)

  • Terms apply.

Airline cards

AmEx issues these co-branded Delta cards that earn rewards in the form of Delta SkyMiles:

  • Delta SkyMiles® Gold American Express Card: If you had this card, the Delta SkyMiles® Reserve American Express Card or the Delta SkyMiles® Platinum American Express Card before, you may not be eligible for a welcome offer.

  • Delta SkyMiles® Blue American Express Card: If you had this card, the Delta SkyMiles® Reserve American Express Card, Delta SkyMiles® Platinum American Express Card or Delta SkyMiles® Gold American Express Card before, you may not be eligible for a welcome offer.

  • Terms apply.

Hotel cards

The Hilton cards provide an exception to some of the rules you see with other AmEx cards. You can’t get a welcome offer on a card if you get that exact same card again, but you can get another card in the Hilton family and be eligible for that card’s offer.

Hilton Honors

  • Hilton Honors American Express Aspire Card: If you had this card before, you may not be eligible for a welcome offer. (All information about the Hilton Honors American Express Aspire Card has been collected independently and the card is no longer available through NerdWallet.)

Marriott Bonvoy

What you can do

Choose your card carefully

If you can only get one welcome bonus per card family, go for the card with the biggest bonus available. That may mean stomaching a higher annual fee (and the annual fees on some of these cards are no joke), but if you choose a card with other perks you’ll actually use, you can get more value out of the card while you carry it.

You can opt to downgrade the pricier card later on to another member of the family with a lower annual fee if you’d like to keep your account open for a lower cost. You won’t earn another bonus this way, however.

Look for targeted offers

Anecdotally, consumers may receive targeted credit card offers from AmEx without this lifetime language, meaning you may be eligible for another bonus despite carrying another card in that family. These offers arrive randomly, so pay attention to what you get in the mail.

Ask for a retention bonus

If you’re considering canceling a card once the annual fee is due again, call the number on the back of your card and ask about retention offers. You’re shut out of bonuses on other similar AmEx cards, but perhaps a kindly customer service representative can convince you to hold onto the card you have now with a waived annual fee or some extra rewards points.

Source: nerdwallet.com

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Wondering how to stay at hotels for free? I have stayed in many hotel rooms for free over the years by using many of these same strategies below. Finding ways to get free hotel stays is a great way to travel on a budget or simply just save money on hotels. This can allow you…

Wondering how to stay at hotels for free? I have stayed in many hotel rooms for free over the years by using many of these same strategies below.

Finding ways to get free hotel stays is a great way to travel on a budget or simply just save money on hotels. This can allow you to go on more vacations and use your money for other things in life.

Whether it’s a fancy resort or a specific hotel brand, the trick is to know where to find these opportunities and make the most of them.

Key Takeaways

  • Loyalty programs are a direct path to earning free hotel stays. This is because they tend to give a free night after a certain number of paid stays. You accumulate points for each stay that you can redeem for free nights.
  • Credit card points can be used for free hotel stays. Many credit cards partner with hotel brands to give sign-up bonuses. By meeting the minimum spending requirements, you can earn points for free hotel stays. These points can be substantial, so choose a card aligned with your preferred hotel chain.
  • Earning gift cards from rewards platforms can be a way to make money to put toward free hotel stays.

Best Ways To Get Free Hotel Stays

Below are ways to get free hotel stays.

Take surveys for free hotel stays

You can get free gift cards by answering paid online surveys, and you can use these gift cards to help you get a free hotel stay.

So, this would work like this – you could get free gift cards to places like Hotels.com, Marriott Hotels, Holiday Inn, or even a Visa gift card (that you can use anywhere) as a reward for answering online surveys. You then collect gift cards until you reach the amount that you need to book the hotel that you want.

To get started, you’ll want to find a survey site that you trust. Some of my favorites are:

I recommend signing up for all of them so that you can get the most surveys possible to answer, which will then pay you with more gift cards.

There are also other apps that you can use as well to get free gift cards, such as Fetch Rewards and Ibotta.

I get free gift cards all the time, and recently, I logged into several of the accounts that I am signed up for and turned in my points. This led to me getting $275 in free gift cards. I personally like to wait until I have a lot of gift cards that I can redeem all at once.

Now, this would take a decent amount of time. You won’t get a free hotel stay in one day. But if you keep doing surveys, your gift cards will add up.

Recommended reading: 16 Real Ways To Earn Free Gift Cards (Amazon, Target, Visa)

How to get free hotel stays as an influencer or blogger

As a blogger and social media influencer, I have received many hotel stays for free over the years. From luxury hotels and all-inclusive resorts in the Caribbean to RV campgrounds and more, I have partnered with many different types of accommodations over the years.

And, I know of many other people who have received free hotel rooms through this as well.

Getting free hotel stays as an influencer means partnering with hotels and showing them why you’re valuable to their brand.

This may include sharing your hotel stay on your blog, Facebook, Instagram, Twitter, YouTube, TikTok, or somewhere else that you have followers and readers.

Here’s a quick guide on how to stay at hotels for free as a social media influencer or blogger:

  • Assess what you can offer. Hotels are looking for exposure and new customers, so your reach and engagement rates are important. How many people will see what you share about their hotel?
  • Customize your content to align with the hotel’s image and key messages.
  • Contact hotels professionally, usually through their marketing or PR department, and highlight how your content will benefit their visibility and attract potential customers. This is typically done through email.
  • Be clear about expectations – what you will provide and what you expect in return. Set deliverables, such as a number of posts, stories, or a video.

You can learn how to start a blog by taking my free How To Start A Blog Course. You can join over 80,000 people who have already taken the course. In this free course, I show you how to create a blog, from the technical side to earning your first income and attracting readers.

Travel credit card rewards

If you want to learn how to stay at hotels for free, this is one of the top ways.

I have earned several free hotel stays over the years by using the rewards points I have earned from my credit cards toward my hotel room. I’ve been using rewards credit cards for years, and they are pretty much all that I use now. It helps me save money on travel, earn cash back, and more. 

A rewards credit card lets you earn points, miles, or cash back that you can use for almost free travel. These cards usually give you points that you can use for things like airline miles, booking hotels, gift cards, or cash back. You earn these rewards just by using your credit card for everyday purchases like groceries, gas, and shopping. But remember, it’s important to pay off your full balance each month to make sure the rewards are worth it and avoid paying extra for interest charges.

Here’s a quick summary to help you understand how rewards credit cards work:

  1. Choose a credit card with rewards that interest you, like points, cash back, or travel rewards.
  2. The card may require you to spend a certain amount, for example, $3,000 in the first 90 days, to get a sign-up bonus. Some don’t have any minimum requirement, and you can simply earn points for your purchases.
  3. Use these points for rewards like cash back, hotel stays, airfare, or other options.

You can learn more about my favorite cards at Best Rewards Credit Cards, such as the Chase Sapphire Preferred Card (Chase Ultimate Rewards Points are the best!), Chase Sapphire Reserve, Marriott Bonvoy Boundless, Hilton Honors American Express Surpass Card, and others.

I also recommend reading How To Take A 10 Day Trip To Hawaii For $22.40 – Flights & Accommodations Included.

Note: Credit card rewards and even the best travel credit cards are not worth it if you go into debt. Remember to pay off your monthly bill in time (and the full amount) before interest charges accrue. Also, many of the good rewards credit cards have an annual fee each year on your card anniversary, so take that into account as well. So, you should always be careful!

Sign up for hotel loyalty programs

Hotel rewards programs are your way to get free stays and room upgrades. When you join these programs, you can earn points for a free night’s stay, and as you climb the levels, you can get additional benefits such as getting your resort fees waived.

Programs like Marriott Hotels, IHG Rewards Club, and Hilton Honors are free to join and sometimes give you a free night after a certain number of stays or points earned.

Some examples of hotel rewards programs include:

  • Marriott Bonvoy – Combines former Marriott Rewards, Ritz-Carlton Rewards, and Starwood Preferred Guest programs.
  • IHG Rewards Club – Allows you to earn points for stays which can be used for free nights.
  • Hilton Honors – Provides exclusive member deals and guarantees the lowest rates when booking directly.

Many travel booking sites also have rewards programs, such as Expedia even. These programs give valuable benefits like this to get you to book through them as much as possible so that they can make more money.

You can earn points in several ways beyond just booking hotel rooms:

  • Stay at hotels – Every night you stay earns you more points, with the amount varying by hotel and the rate you book.
  • Promotions – Look out for and register for periodic promotions that have bonus points.
  • Partnerships – Earn points through partners, for instance, by booking car rentals or flights with associated airlines.

Your accumulated points can be redeemed for free hotel nights, among other rewards. The number of points needed for a free night certificate varies by hotel brand, location, and the room’s price.

Find mystery shopping jobs at hotels

Mystery shop companies sometimes need secret shoppers to evaluate a hotel for them. I have seen these types of jobs pop up several times, and I have personally done a few as well.

These are typically just one or two-night stays in your local area, but it can make for a fun and free staycation.

This can be a great way to vacation on a budget.

Become a travel agent if you’re traveling with a group

If you often travel with groups, becoming a travel agent can be a smart choice. As a travel agent, you get industry discounts and may earn commissions on your bookings. To become one, you need accreditation, usually from a trusted program that teaches you important industry knowledge.

Here’s how you can benefit:

  • Access to discounts – As a travel agent, you can unlock special rates not available to the public. When traveling with a group, this can translate into significant savings.
  • Earn commissions – Booking for multiple people means the potential for earning commissions from hotels increases. This can sometimes offset the cost of your own accommodation.

Though this role comes with perks, it also means handling travel details professionally and responsibly for others. It’s not just about getting free stays; it’s also about making sure that your group has great travel experiences.

Work at a hotel

Working at a hotel can be a way to get free accommodation. As an employee, you can usually get discounts or even stay for free, depending on your job and the hotel’s policy.

This may include jobs such as working the front desk, being in management, and more.

Policies vary, so it’s important to know what’s available to you and to ask about the hotel’s policy on employee stays. For example, some hotels have a set number of free nights as part of the employment package. Plus, discounts on rooms can sometimes extend to family and friends.

Attend a timeshare presentation

Going to a timeshare presentation can lead to complimentary hotel stays.

These can sometimes be brutal, though, so if you think that you may end up buying a timeshare that you don’t need – then DO NOT DO THIS! Timeshares can be quite expensive and they are lifelong with annual costs.

But, if you think you can withstand the temptation, plenty of people sign up for these in order to get a free hotel stay all the time.

Here’s how this works:

  • Usually, your attendance at a 90-minute to 2-hour sales pitch is required.
  • Be prepared for high-pressure sales tactics, but remember you’re under no obligation to buy.
  • Incentives can range from free hotel stays, discounted travel, or even gift cards.
  • Make sure you understand the terms and conditions attached to the free stay.
  • If interested, consider the timeshare offer carefully. If not, politely decline and redeem your free stay or other perks.

Hotel promotions and deals

You can stretch your travel budget by taking advantage of different hotel promotions and deals to get the best room rates. Whether you travel often or are planning a one-time trip, there are several strategies you can use to get free hotel stays.

When you sign up for newsletters from your favorite hotel chains, you’ll receive emails on new promotions and deals (such as for seasonal sales on room rates) directly to your inbox. Some hotels might even offer a reward night, room upgrades, or welcome points just for joining at check-in.

Scan your grocery receipts for free hotel gift cards

Using grocery receipt scanning apps can be an easy way to earn free hotel stay rewards.

As you do your regular grocery shopping at grocery stores, these apps turn your grocery receipts into points, which can be exchanged for gift cards that can be used at different hotels.

Here’s how you can get started:

  1. Download receipt scanning apps – Look for apps like Fetch Rewards (this is my favorite and the one that I use for every single one of my grocery receipts) that are known to offer hotel gift cards as a redemption option.
  2. Scan your receipts – Every time you shop, take a second to scan your receipts using the app.
  3. Earn points – Get points with every scanned receipt.
  4. Redeem for hotel gift cards – Once you’ve earned enough points, browse the app’s reward section for hotel gift card options. Select your preferred hotel chain and redeem your points. With Fetch Rewards, you can get gift cards to places such as Airbnb, Hotels.com, Visa, and more.

While it will take some time to earn enough points, it can be a way to save some money on a hotel reservation.

Frequently Asked Questions

Below are answers to common questions about how to stay at hotels for free.

Is it possible to get a free night at a hotel?

Yes, you may be able to get a free night at a hotel through loyalty programs, which reward you with points for free night awards that can be redeemed for free nights. Additionally, some programs may give a free night after a certain number of paid stays or as a sign-up bonus.

How to get a hotel room for free?

You may get a free hotel room through loyalty programs, credit card rewards, by earning free hotel gift cards, and more.

How can I earn free hotel stays through surveys?

You can earn points by joining market research and filling out surveys on specific websites. These points might be traded for hotel rewards points, allowing you to book hotel stays for free.

Are there contests or sweepstakes that offer chances to win a stay at a hotel?

Yes, contests and sweepstakes run by hotels, travel bloggers, or travel websites tend to have hotel stays as prizes. You can start by possibly searching related hashtags on social media, such as #giveaway.

How can I travel luxury for free?

Traveling in luxury for free can be done by maximizing credit card sign-up bonuses and rewards, leveraging elite status with hotel loyalty programs for upgrades, and possibly collaborating with luxury hotels as an influencer if you have a strong online following.

How to get a free hotel room by complaining?

If you honestly had a bad stay at a hotel, you may be able to talk to management. Sometimes, they will give you a free hotel stay to make up for the bad review. But, you should never lie about a stay just to get a free room, as you can cost someone their job.

How To Stay at Hotels for Free – Summary

I hope you enjoyed this article on how to stay at hotels for free.

There are many ways to get free hotel stays, as you learned above.

Joining hotel loyalty programs at major hotel chains is a simple way to get free night rewards. These programs give you points for staying often, and you can use these points for free hotel nights.

Travel credit cards and hotel credit cards also give rewards that can be used for hotel stays.

If you’re an influencer or booking for a group, this may result in you getting a hotel stay for free. Other ways, like joining hotel promotions, being a mystery shopper, or attending timeshare presentations, can also get you free or cheaper stays at different places.

I have personally done many of the ways listed above to get free hotel stays at places in many states and countries. The stays have been great and have allowed me to save so much money over the years!

Have you ever stayed at a hotel for free?

Recommended reading:

Source: makingsenseofcents.com

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Many or all of the products and brands we promote and feature including our ‘Partner Spotlights’ are from our partners who compensate us. However, this does not influence our editorial opinion found in articles, reviews and our ‘Best’ tables. Our opinion is our own. Read more on our methodology here.

Comparing mortgage rates is key to keeping your mortgage costs lower. It’s also why you should shop around if you’re looking for a new mortgage deal. Whether you’re ready to compare mortgages right now or want to keep tabs on the latest mortgage rates in the UK, everything you need is here.

Partner Spotlight

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Tell us what you’re looking for and see current UK mortgages available, including rates, repayments and product information. Continue online to our partner L&C for fee-free mortgage help and advice.

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How to get the best mortgage rates and deals

Mortgage rates vary depending on the type of mortgage you’re looking for, your financial situation and your credit score. But when we talk about getting the best mortgage rate, it’s important to find the best rate among the mortgage deals that suit you and your circumstances. 

Mortgage fees and the features you want in a mortgage should always be considered alongside the mortgage rate when making mortgage comparisons and shopping around for any mortgage deal. 

If you’re in any way unsure or want help finding the best mortgage deal for you we recommend you seek mortgage advice.  

Are mortgage rates going down?

Mortgage rates have mainly been rising in the past week, continuing the upward trend seen during much of February. The average rate on two-year fixed-rate mortgages increased to 5.15% in the week to 28 February, rising from 5.08% a week earlier, according to Rightmove. At the same time, the average rate on five-year fixed-rate mortgages increased to 4.80%, up from 4.72%. 

Many of the big UK lenders have increased the cost of their fixed-rate mortgages in recent weeks. However, average rates remain lower than at the beginning of the year, due to the significant rate cuts seen during the mortgage rate price war in January.

Some experts are predicting that more mortgage rate rises may be on the way. This is mainly because of expectations that the Bank of England base rate may need to stay higher for longer, to get inflation down.

What are current UK mortgage rates? 

The average two-year fixed-rate mortgage rate, if you have a 25% deposit or equity, increased to 4.99% over the past week, up from 4.90%, while the average rate on a similar five-year fixed-rate mortgage rose to 4.70%, from 4.61%. If you have a smaller deposit or equity of 5%, the average two-year fixed rate remained unchanged at 5.79%, while the average five-year rate increased to 5.38%, from 5.35%. All rates are according to Rightmove as at 28 February 2024.

Latest average two-year fixed-rate mortgage rates

Loan to value (LTV) 21 February 2024 28 February 2024 Week-on-week change ⇩ ⇧ 
60% LTV 4.50% 4.62% +0.12% ⇧ 
75% LTV 4.90% 4.99% +0.09% ⇧
85% LTV 5.08% 5.14% +0.06% ⇧ 
90% LTV 5.31% 5.38% +0.07% ⇧ 
95% LTV 5.79% 5.79% No change ⇔

Latest average five-year fixed-rate mortgage rates

Loan to value (LTV) 21 February 2024 28 February 2024 Week-on-week change ⇩ ⇧
60% LTV 4.19% 4.30% +0.11% ⇧ 
75% LTV 4.61% 4.70% +0.09% ⇧ 
85% LTV 4.67% 4.73% +0.06% ⇧ 
90% LTV 4.86% 4.93% +0.07% ⇧ 
95% LTV 5.35% 5.38% +0.03% ⇧ 

Data sourced from Rightmove/Podium. Correct as at 28 February 2024.

Average rates are based on 95% of the mortgage market and products with a fee of around £999.

What mortgage do I need?

If you’re looking for a mortgage, you’ll usually fall into one of the following categories of mortgage borrower.

If you’ve never owned a home before, you’ll usually need a first-time buyer mortgage. Knowing that you’re just starting out, the deposit requirements on most first-time buyer mortgages are generally small. You should also be able to find mortgage deals where upfront fees are kept to a minimum. However, mortgage rates for first-time buyers tend to be higher than if you’re already on the property ladder. This is because you’re likely to require a larger loan relative to the value of your property – so borrow at a higher loan-to-value (LTV) – making you a riskier proposition in the eyes of lenders. As it’s your first mortgage, lenders also have less to go on when trying to assess your reliability as a mortgage borrower.

If you already have a mortgage but want to switch to a new one, you are looking to remortgage. You may want to remortgage because your current fixed-rate or discounted term is at an end and you don’t want to move on to your lender’s standard variable rate (SVR), which may be higher. Other reasons you may remortgage include to raise funds to pay for home improvements, or because falling interest rates or a rise in the value of your home means remortgaging could save you money. If you’ve built equity in your property since taking out your current mortgage, it may be possible to borrow at a lower LTV for your new mortgage – and the lower your LTV, the lower mortgage rates tend to be.

If you already have a mortgage but are moving home, you may be able to take your current mortgage with you – this is called porting. Alternatively, you may want to arrange a new mortgage altogether, either with your current lender or a different one. Whichever option you’re considering, it’s important to weigh up the costs of either porting or exiting your existing deal, along with any potential fees you may need to pay on a new mortgage deal.

If you’re buying a property to rent out to tenants, you’ll be looking for a buy-to-let mortgage. You’ll normally need a larger deposit for a buy-to-let mortgage than you would for a residential mortgage, and buy-to-let mortgage rates tend to be higher too. Lenders will also want to see that the rental income you expect to receive will more than cover your monthly repayments. 

How mortgage rates work 

Mortgage rates are the interest rate you pay to a lender on the mortgage balance you have outstanding. The lower your mortgage rate, the lower your monthly mortgage repayments tend to be, and vice versa.  

Different types of mortgage

The type of mortgage you take out can affect the mortgage rate you pay, and whether it may change going forward.  

Fixed-rate mortgage

A fixed-rate mortgage guarantees that your mortgage rate, and therefore your monthly repayments, won’t change during the set fixed-rate period that you choose. 

This can help with budgeting and means you are protected against a rise in mortgage costs if interest rates begin to increase. However, you’ll miss out if interest rates start to fall while you are locked into a fixed-rate mortgage.  

Variable rate mortgages

With a variable rate mortgage, your mortgage rate has the potential to rise and fall and take your monthly repayments with it. This may work to your advantage if interest rates decrease, but means you’ll pay more if rates increase. Variable rate mortgages can take the form of:  

  • a tracker mortgage, where the mortgage rate you pay is typically set at a specific margin above the Bank of England base rate, and will automatically change in line with movements in the base rate. 
  • a standard variable rate, or SVR, which is a rate set by your lender that you’ll automatically move on to once an initial rate period, such as that on a fixed-rate mortgage, comes to an end. SVRs tend to be higher than the mortgage rates on other mortgages, which is why many people look to remortgage to a new deal when a fixed-rate mortgage ends. 
  • a discount mortgage, where the rate you pay tracks a lender’s SVR at a discounted rate for a fixed period.

Offset mortgages

With an offset mortgage, your savings are ‘offset’ against your mortgage amount to reduce the interest you pay. You can still access your savings, but won’t receive interest on them. Offset mortgages are available on either a fixed or variable rate basis. 

Interest-only mortgages

An interest-only mortgage allows you to make repayments that cover the interest you’re charged each month but won’t pay off any of your original mortgage loan amount. This helps to keep monthly repayments low but also requires that you have a repayment strategy in place to pay off the full loan amount when your mortgage term ends. Interest-only mortgages can be arranged on either a fixed or variable rate.   

» MORE: Should I get an interest-only or repayment mortgage?

How rate changes could affect your mortgage payments

Depending on the type of mortgage you have, changes in mortgage rates have the potential to affect monthly mortgage repayments in different ways. 

Fixed-rate mortgage

If you’re within your fixed-rate period, your monthly repayments will remain the same until that ends, regardless of what is happening to interest rates generally. It is only once the fixed term expires that your repayments could change, either because you’ve moved on to your lender’s SVR, which is usually higher, or because you’ve remortgaged to a new deal, potentially at a different rate. 

Tracker mortgage

With a tracker mortgage, your monthly repayments usually fall if the base rate falls, but get more expensive if it rises. The change will usually reflect the full change in the base rate and happen automatically, but may not if you have a collar or a cap on your rate. A collar rate is one below which the rate you pay cannot fall, while a capped rate is one that your mortgage rate cannot go above.    

Standard variable rate mortgage

With a standard variable rate mortgage, your mortgage payments could change each month, rising or falling depending on the rate. SVRs aren’t tied to the base rate in the same way as a tracker mortgage, as lenders decide whether to change their SVR and by how much. However, it is usually a strong influence that SVRs tend to follow, either partially or in full.  

» MORE: How are fixed and variable rate mortgages different? 

Mortgage Calculators

Playing around with mortgage calculators is always time well-spent. Get an estimate of how much your monthly mortgage repayments may be at different loan amounts, mortgage rates and terms using our mortgage repayment calculator. Or use our mortgage interest calculator to get an idea of how your monthly repayments might change if mortgage rates rise or fall.

Can I get a mortgage?

Mortgage lenders have rules about who they’ll lend to and must be certain you can afford the mortgage you want. Your finances and circumstances are taken into account when working this out.

The minimum age to apply for a mortgage is usually 18 years old (or 21 for a buy-to-let mortgage), while there may also be a maximum age you can be when your mortgage term is due to end – this varies from lender to lender. You’ll usually need to have been a UK resident for at least three years and have the right to live and work in the UK to get a mortgage. 

Checks will be made on your finances to give lenders reassurance you can afford the mortgage repayments. You’ll need to provide proof of your earnings and bank statements so lenders can see how much you spend. Any debts you have will be considered too. If your outgoings each month are considered too high relative to your monthly pay, you may find it more difficult to get approved for a mortgage.

Lenders will also run a credit check to try and work out if you’re someone they can trust to repay what you owe. If you have a good track record when it comes to managing your finances, and a good credit score as a result, it may improve your chances of being offered a mortgage. 

If you work for yourself, it’s possible to get a mortgage if you are self-employed. If you receive benefits, it can be possible to get a mortgage on benefits. 

Mortgages for bad credit

It may be possible to get a mortgage if you have bad credit, but you’ll likely need to pay a higher mortgage interest rate to do so. Having a bad credit score suggests to lenders that you’ve experienced problems meeting your debt obligations in the past. To counter the risk of problems occurring again, lenders will charge you higher interest rates accordingly. You’re likely to need to source a specialist lender if you have a poor credit score or a broker that can source you an appropriate lender.

What mortgage can I afford?

Getting an agreement or decision in principle from a mortgage lender will give you an idea of how much you may be allowed to borrow before you properly apply. This can usually be done without affecting your credit score, although it’s not a definite promise from the lender that you will be offered a mortgage. 

You’ll also get a good idea of how much mortgage you can afford to pay each month, and how much you would be comfortable spending on the property, by looking at your bank statements. What is your income – and your partner’s if it’s a joint mortgage – and what are your regular outgoings? What can you cut back on and what are non-negotiable expenses? And consider how much you would be able to put down as a house deposit. It may be possible to get a mortgage on a low income but much will depend on your wider circumstances. 

» MORE: How much can I borrow for a mortgage?

Joint mortgages

Joint mortgages come with the same rates as those you’ll find on a single person mortgage. However, if you get a mortgage jointly with someone else, you may be able to access lower mortgage rates than if you applied on your own. This is because a combined deposit may mean you can borrow at a lower LTV where rates tend to be lower. Some lenders may also consider having two borrowers liable for repaying a mortgage as less risky than only one.

The importance of loan to value

Your loan-to-value (LTV) ratio is how much you want to borrow through a mortgage shown as a percentage of the value of your property. So if you’re buying a home worth £100,000 and have a £10,000 deposit, the mortgage amount you need is £90,000. This means you need a 90% LTV mortgage. 

The LTV you’re borrowing at can affect the interest rate you’re charged. Mortgage rates are usually lower at the lowest LTVs when you have a larger deposit.

What other mortgage costs, fees and charges should you be aware of?

It’s important to take into account the other costs you’re likely to face when buying a home, and not just focus on the mortgage rate alone. These may include:

Stamp duty

Stamp duty is a tax you may have to pay to the government when buying property or land. At the time of publication, if you’re buying a residential home in England or Northern Ireland, stamp duty only becomes payable on properties worth over £250,000. Different thresholds and rates apply in Scotland and Wales, and if you’re buying a second home. You may qualify for first-time buyer stamp duty relief if you’re buying your first home. 

» MORE: Stamp duty calculator

Mortgage deposit

Your mortgage deposit is the amount of money you have available to put down upfront when buying a property – the rest of the purchase price is then covered using a mortgage. Even a small deposit may need to be several thousands of pounds, though if you have a larger deposit this can potentially help you to access lower mortgage rate deals.

Mortgage fees

Among the charges and fees which are directly related to mortgages, and the process of taking one out, you may need to pay:  

Sometimes also referred to as the completion or product fee, this is a charge paid to the lender for setting up the mortgage. It may be possible to add this on to your mortgage loan although increasing your debt will mean you will be charged interest on this extra amount, which will increase your mortgage costs overall. 

This is essentially a charge made to reserve a mortgage while your application is being considered, though it may also be included in the arrangement fee. It’s usually non-refundable, meaning you won’t get it back if your application is turned down. 

This pays for the checks that lenders need to make on the property you want to buy so that they can assess whether its value is in line with the mortgage amount you want to borrow. Some lenders offer free house valuations as part of their mortgage deals. 

You may want to arrange a house survey so that you can check on the condition of the property and the extent of any repairs that may be needed. A survey should be conducted for your own reassurance, whereas a valuation is for the benefit of the lender and may not go into much detail, depending on the type requested by the lender.    

Conveyancing fees cover the legal fees that are incurred when buying or selling a home, including the cost of search fees for your solicitor to check whether there are any potential problems you should be aware of, and land registry fees to register the property in your name. 

Some lenders apply this charge if you have a small deposit and are borrowing at a higher LTV. Lenders use the funds to buy insurance that protects them against the risk your property is worth less than your mortgage balance should you fail to meet your repayments and they need to take possession of your home. 

If you get advice or go through a broker when arranging your mortgage, you may need to pay a fee for their help and time. If there isn’t a fee, it’s likely they’ll receive commission from the lender you take the mortgage out with instead, which is not added to your costs.  

These are fees you may have to pay if you want to pay some or all of your mortgage off within a deal period.  Early repayment charges are usually a percentage of the amount you’re paying off early and tend to be higher the earlier you are into a mortgage deal.

Government schemes to help you buy a home

There are several government initiatives and schemes designed to help you buy a home or get a mortgage.   

95% Mortgage Guarantee Scheme 

The mortgage guarantee scheme aims to persuade mortgage lenders to make 95% LTV mortgages available to first-time buyers with a 5% deposit. It is currently due to finish at the end of June 2025.  

Shared Ownership 

The Shared Ownership scheme in England allows you to buy a share in a property rather than all of it and pay rent on the rest. Similar schemes are available in Scotland, Wales and Northern Ireland.   

Help to Buy

The Help to Buy equity loan scheme, designed to help buyers with a smaller deposit, is still available in Wales, but not in England, Scotland and Northern Ireland. 

Forces Help to Buy

The Forces Help to Buy Scheme offers eligible members of the Armed Forces an interest-free loan to help buy a home. The loan is repayable over 10 years.  

First Homes Scheme 

Eligible first-time buyers in England may be able to get a 30% to 50% discount on the market value of certain properties through the First Homes scheme.

Right to Buy

Under this scheme, eligible council tenants in England have the right to buy the property they live in at a discount of up to 70% of its market value. The exact discount depends on the length of time you’ve been a tenant and is subject to certain limits. Similar schemes are available in Wales, Scotland and Northern Ireland, while there is also a Right to Acquire scheme for housing association tenants.

Lifetime ISAs 

To help you save for a deposit, a Lifetime ISA will see the government add a 25% bonus of up to £1,000 per year to the amount you put aside in the ISA.

How to apply for a mortgage

You may be able to apply for a mortgage directly with a bank, building society or lender, or you may need or prefer to apply through a mortgage broker. You’ll need to provide identification documents and proof of address, such as your passport, driving license or utility bills.

Lenders will also want to see proof of income and evidence of where your deposit is coming from, including recent bank statements and payslips. It will save time if you have these documents ready before you apply.  

» MORE: Best mortgage lenders    

Would you like mortgage advice?

Taking out a mortgage is one of the biggest financial decisions you’ll ever make so it’s important to get it right. Getting mortgage advice can help you find a mortgage that is suitable to you and your circumstances. It also has the potential to save you money. 

If you think you need mortgage advice, we’ve partnered with online mortgage broker London & Country Mortgages Ltd (L&C) who can offer you fee-free advice. 

Key mortgage terms explained 

Loan to value (LTV) Your loan-to-value ratio is the amount you wish to borrow through a mortgage expressed as a percentage of the value of the property you’re buying.
Initial interest rate This is the interest rate you’ll pay when you’re still within the initial fixed-rate period of a mortgage deal.
Initial interest rate period This is the period of time your initial interest rate will last, before your lender switches you over to its SVR.
Annual Percentage Rate of Charge (APRC) The APRC is a single percentage figure designed to help you compare the annual cost of different mortgage deals.
Annual overpayment allowance (AOA) This is the amount a lender will let you overpay on your mortgage each year without being charged a fee.
Early Repayment Charge (ERC) This is a charge you may need to pay if you want to pay off some or all of your mortgage earlier than you agreed with your lender.
Mortgage term A mortgage term is the full period of time over which the mortgage contract is taken out for – it should not be confused with the deal term. At the end of the term you will have paid off the full debt or all of the interest depending on what type of mortgage you took.

The current average rate on a five-year fixed-rate mortgage for a 10% deposit or equity is 4.93%, up from 4.86% a week earlier. For an equivalent two-year fixed-rate mortgage, the average rate of 5.38% has increased from 5.31%. If you have a 40% deposit/equity, the average five-year fixed rate is 4.30%, up from 4.19% a week earlier, while the average two-year fixed rate is 4.62%, rising from 4.50%. All rates are according to Rightmove as at 28 February 2024.

A mortgage rate is the interest rate a lender charges on the mortgage amount that you borrow. Mortgage interest rates may be fixed, guaranteeing that they will remain the same for a certain length of time, or variable, meaning it may fluctuate. 

Mortgage providers regularly review the mortgage rates that they offer to take into account the costs involved with funding its lending activities, their latest priorities in terms of target borrowers, and wider conditions in the market. As a result, when searching for a new mortgage, it’s always a good idea to consider various lenders and take the time to compare different mortgages. Crucially,  you need to bear in mind that a deal offering the best mortgage rate may not necessarily be the one that is most suitable for you. The mortgage rate is important, but at the same time, you need to consider other factors, such as the charges and fees attached to a mortgage, the type of mortgage that you need, and the mortgage term that you want.

While mortgage rates have been rising in recent weeks, many commentators still expect to see mortgage rates fall across 2024 as a whole.   

The next move in the Bank of England base rate, which currently sits at 5.25%, is widely forecast to be down. But with inflation remaining unchanged in January, and wage growth easing by less than expected, some experts predict the first rate cut may not be made until September. Towards the end of 2023, some believed the rate could begin falling in March. 

The uncertainty makes it even more difficult than usual to predict what may happen to mortgage rates next. 

The interest rate is the percentage of a loan amount that a lender charges for borrowing money, whereas the APRC, or annual percentage rate of charge, is a calculation expressed as a percentage that takes into account both the interest rate and associated costs of a mortgage across its lifetime. The aim of the APRC is to help borrowers make meaningful comparisons between mortgage deals.

Taking the time to compare mortgage rates and deals, making sure your credit score is in good shape, saving for a larger deposit and paying off existing debts can all help improve your chances of getting a good mortgage deal.

When looking for a mortgage it is vital that you compare mortgage lenders and the rates and deals on offer. Taking the time to carry out a mortgage comparison can improve your chances of finding the best mortgage for your circumstances.

A mortgage is a loan you take out to help you buy a property you don’t have the money to pay for up front. You may be a first-time buyer, remortgaging, securing a buy to let, or moving to your next home. The amount you need to borrow will depend on the purchase price of the property, and how much you can put down as a deposit or already hold in equity in your current property. The mortgage is secured against the property, which means your home is at risk if you don’t meet the repayments.

With a capital repayment mortgage, your monthly repayments pay off your interest and some of your original loan amount each month, so that everything should be paid off by the time you reach the end of your mortgage term. The alternative to a repayment mortgage is an interest-only mortgage, where you will repay only the interest each month before needing to pay off your original loan amount in its entirety at the end of the mortgage term.

A mortgage term is the period of time you agree with a lender over which you intend to entirely pay off your mortgage and interest. A typical mortgage term in the UK is usually considered to be 25 years, but you may opt for a shorter period or a longer one, if allowed. Some lenders offer mortgage terms of up to 40 years. If you have a longer term, your monthly repayments will be lower, but you’ll pay more interest overall.

The cost of your mortgage will depend on many factors, including how much you borrow, the size of your deposit, the length of your mortgage term, the mortgage rate you’re paying, and whether you can afford to make overpayments. Your mortgage lender must provide you with the full cost of the mortgage before you apply.

» MORE: How much could your mortgage cost you?

Besides making sure your monthly repayments are affordable, there are many other costs associated with arranging a mortgage. These may include arrangement, survey, valuation and mortgage broker fees.

If you’ve previously owned a home and the property you’re buying is worth more than £250,000, stamp duty will be payable as well; if you’re a first-time buyer, stamp duty only becomes payable on properties worth over £425,000.

To get a mortgage as a first-time buyer you’ll usually need at least a 5% deposit and a regular income. Most lenders offer first-time buyer mortgages aimed primarily at those with smaller deposits. First-time buyers may also be able to secure a mortgage with the help of close relatives through a guarantor mortgage.

Some lenders offer buy-to-let mortgages that can be arranged on a property you want to rent out to a tenant, rather than live in yourself. You’ll usually need a larger deposit for a buy-to-let mortgage than for a residential mortgage, and interest rates are often higher. You may also need to already own your own home or have a residential mortgage on another property.

It may be possible to get a mortgage with bad credit but you’ll probably have fewer mortgage deals to choose from and need to pay higher mortgage rates.

You may want to consider remortgaging if your initial fixed-rate period is close to ending and you want to avoid moving on to your lender’s SVR. Choosing to remortgage has the potential to save you money if you find the right mortgage deal.

» MORE: How remortgaging works

It’s always important to think about your plans, particularly when it comes to choosing the type of mortgage that will suit you best. For instance, if you plan to move in perhaps two years, choosing a five-year fixed-rate mortgage may mean you have to pay early repayment charges if you need to get a new mortgage.

Getting an agreement in principle, or AIP, from a lender will give you an idea of how much you may be able to borrow for your mortgage without needing to formally apply. Getting an AIP usually involves a soft credit check, which shouldn’t affect your credit score. However, having an AIP does not guarantee that a lender will offer you a mortgage. An agreement in principle is also sometimes referred to as a decision in principle or a mortgage promise.

Yes, some providers offer halal or Islamic mortgages in the UK. These are compliant with Sharia law and allow people to borrow but not pay interest.

Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on a loan or any other debt secured on it.

Information on this page is a guide. It does not constitute advice, recommendation or suitability to your needs or financial circumstances. Seek qualified mortgage advice before proceeding with a mortgage product.

NerdWallet strives to keep its information accurate and up to date. This information may be different than what you see when you visit a financial institution, service provider or specific product’s site. All financial products and services are presented without warranty. When evaluating products, please review the financial institution’s Terms and Conditions.

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Apache is functioning normally

Whether you’re planning on hitting the road for spring or summer break or launching yourself into home improvement projects, Discover’s bonus categories for the second quarter of 2024 can offer some value for your spending.

From April 1 through June 30, 2024, holders of eligible cards like the Discover it® Cash Back and Discover it® Student Cash Back can earn 5% cash back at gas stations, electric vehicle charging stations, home improvement stores and on public transit, on up to $1,500 in combined spending for the quarter. All other purchases earn 1% cash back. Activation is required to be eligible for the higher rewards rate.

Here’s what you need to know about which purchases qualify.

Discover bonus rewards categories for 2024

Q1 (Jan. 1–March 31)

  • Restaurants.

  • Drugstores.

Q2 (April 1–June 30)

  • Gas stations/EV charging stations.

  • Home improvement stores.

  • Public transit.

Q3 (July 1–Sept. 30)

  • TBD (In 2023: Gas stations; digital wallets).

Q4 (Oct. 1–Dec. 31)

  • TBD (In 2023: Amazon, Target).

Discover’s Q2 bonus categories unpacked

Discover’s 5% categories come with terms. For the second quarter of 2024, here’s what will qualify:

Gas stations and EV charging stations

To earn the bonus rate, a purchase must be classified as made with a place that sells automotive gasoline or offers an electric vehicle charging station to the public. When you’re on the go, those purchases made at the pump or inside the gas station may also qualify for the elevated rewards rate.

Some purchases may not qualify, such as those made at supermarkets, supercenters, wholesale clubs and parking garages.

Public transit

Eligible public transit purchases that earn 5% back will include passenger buses, railways, ferries, taxis and rideshare services made in the U.S. Long-range passenger land, rail and water transportation services won’t qualify.

Home improvement stores

If you’re planning some home renovation projects or need to stock up on supplies, you can earn more value by doing it within Discover’s promotional window.

Eligible purchases will include those made online and in store at home improvement stores; building supply stores like lumber, paint and hardware stores; and lawn, nursery and garden supply stores. Purchases made through third parties like contractors may not qualify to earn 5% back. And purchases made at stores that offer home furnishings, home appliances, plumbing, heating supply and floor coverings won’t qualify.

Maximizing Discover’s Q2 bonus categories for 2024

To make the most of your bonus categories for the quarter, don’t forget these steps:

  • Log in to your Discover account to activate the bonus categories. 

  • Use your Discover card for any purchases you make in those categories. 

  • Track spending to know when or whether you’ve reached the $1,500 spending limit. (You can view an automated tracker while signed in to your Discover account.)

Considering the Discover it® Cash Back?

The Discover it® Cash Back card can be a worthy contender for your wallet if you’re organized enough to keep track of bonus categories that change every quarter and require activation. It’ll also work best if you’re not in the habit of maintaining a monthly balance, as the card’s steep interest charges will chip away at the value of rewards.

The card’s features include:

Annual fee: $0.

APR: 0% intro APR for 15 months on purchases and balance transfers, and then the ongoing APR of 17.24%-28.24% Variable APR.

Sign-up bonus: INTRO OFFER: Unlimited Cashback Match for all new cardmembers – only from Discover. Discover will automatically match all the cash back you’ve earned at the end of your first year! There’s no minimum spending or maximum rewards. You could turn $150 cash back into $300.

Source: nerdwallet.com

Apache is functioning normally

New cardholders who apply for either card between Feb. 29 and May 1, 2024, can earn the following welcome offers:

  • Marriott Bonvoy Bevy™ American Express® Card: Earn 155,000 Marriott Bonvoy points after spending $5,000 in eligible purchases on the card within the first six months of card membership. Terms apply.

  • Marriott Bonvoy Brilliant® American Express® Card: Earn 185,000 Marriott Bonvoy points after spending $6,000 in eligible purchases on the card within the first six months of card membership. Terms apply.

Both limited-time welcome offers are higher by at least 70,000 Marriott Bonvoy points compared to the standard offers.

NerdWallet values Marriott points at 0.8 cent each. This is a baseline value, drawn from real-world data, not a maximized value. In other words, you should aim for award redemptions that offer 0.8 cent or more in value from your Marriott points.

Given that valuation, the limited-time welcome offers on the Marriott Bonvoy Bevy™ American Express® Card and Marriott Bonvoy Brilliant® American Express® Card cards could be worth upward of $1,000 in hotel stays.

To view rates and fees of the Marriott Bonvoy Bevy™ American Express® Card, see this page.
To view rates and fees of the Marriott Bonvoy Brilliant® American Express® Card, see this page.

Source: nerdwallet.com