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Mortgage types

All mortgages work in the same basic way, you borrow money to buy a property, either pay capital repayment every month or pay only interest every month and payback the original loan end of the term. Once you start looking around for a mortgage, you will realise that there are loads of different types of products to choose from, so many in fact that the choice can be overwhelming and you probably don’t know where to start. Cheapest is not always the best since there are many other factors to consider. There are various types of mortgage rates i.e. fixed, Variable, tracker, discounted and capped


The rate is fixed for a specific period (normally 2, 3 or 5 years), which gives you peace of mind that your monthly mortgage payment will stay same regardless of any movement of Lender’s interest rate


This is lender’s standard variable rate, if you choose this product, your monthly payment could increase or drop based on lender’s current variable rate. Which of course will be notified to you beforehand


Tracker mortgages generally track the Bank of England’s base rate, so your payments could increase or drop depending on market conditions


Your interest rate and monthly payment can increase or drop but is guaranteed not to increase above the agreed ceiling rate


This is similar to tracker rate but here your interest rate charged is normally at a set discount below the lenders own standard variable rate which means whatever the lender’s variable rate your interest rate would be discounted form that rate

Other mortgage types are also available including offset mortgage, cashback mortgage etc. Contact us today if you need to discuss in more detail

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