Mortgage Types

Moving Home Advice


The process of moving house is one thing, but it’s always made far easier if you actually know the mortgage types that are available to you before you make your final choice. Check out the options available for you below before you go ahead.

Interest Only

An interest only mortgage is an arrangement that allows you to just pay the interest charged each month over the term of the loan. You must repay the mortgage outstanding back in full at the end of the term

Repayment
Repayment mortgages are home loans that require you to repay a portion of the capital along with some of the interest every month. As long as you are on time with your payments, you’re guaranteed to have the entire mortgage paid by the end of the term.
Fixed Rate

With this type of mortgage, your interest rate is fixed and guaranteed to stay the same for the duration of the fixed rate.  It helps with budget planning.

Variable Rate

These are standard variable rate mortgages. The mortgage lender gets to decide whatever the rate is.  If the rate increases so does your mortgage payment, if it decreases your mortgage payment reduces.  These rates tend not to have any early repayment charges.

Tracker

These follow the Bank of England base rate, they are fixed at a percentage higher or lower than the Bank of England base rate for an initial period. If the Bank of England base rate increases so does your mortgage payments, if it decreases your payments will reduce.

Discounted Rate
This is a type of mortgage that is a type of variable interest rate, which means that your payments can go up and down. A set discount on a lender’s Standard Variable Rate is offered and this is how it works.

Ready to apply for your mortgage?

Fees Disclaimer

We charge a combination of an initial fee of £250 on application and retain the commission received from the lender. Think carefully before securing other debts against your home. Your property may be repossessed if you do not keep up repayments on your mortgage.