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What are the different mortgage types?
2 minute read
There are mortgages out there to suit every type of homeowner. While it’s great to have a choice, the sheer variety of mortgage types on the market means that choosing the right mortgage can be a confusing business. Our useful guides will give the information you need to have an understanding of the basics. Please do however contact one of our qualified advisers and they will be happy to discuss these in much more detail and advise you on the specifics of your own individual circumstances.
There are also various types of mortgage rates, including:
The rate is fixed for an agreed period (typically up to 5 years) so, unless you make any other changes to your mortgage, your monthly payments will stay the same.
The mortgage rate (and your payments) can vary but is guaranteed not to increase above the agreed rate cap.
Tracker mortgages generally track the Bank of England rate, so your payments could increase or drop depending on market conditions.
The rate charged is at a set discount below the lenders own standard variable rate that means the lender can increase or lower the rate charged at their own discretion.
Other mortgage types are also available, including cashback mortgages, and offset mortgages that allow you to reduce the interest charged by offsetting the mortgage debt against balances in other accounts. You can find more information about various mortgage types on our website and can compare mortgages to find the deal that’s right for you.