Types of Mortgages.
|Discount mortgages - With a discounted-rate mortgage, you get a reduction from the
current standard variable rate for a set period. Your mortgage repayments may increase and reduce as the standard variable
rate changes, but you will not pay the full standard variable rate of interest.
Standard variable rate mortgage - With a standard variable rate mortgage interest is charged at
the lenders standard variable rate. Any changes in the standard variable rate will increase or reduce your
monthly mortgage payment.
Fixed rate mortgages - A fixed-rate
mortgage allows you to plan your finances, safe in the knowledge that during the period the rate is fixed for, your mortgage
repayments will not be affected by changes in the interest rate.
mortgages - With a tracker mortgage, the interest rate which you pay is linked to the Bank of England Base Rate. Your mortgage
repayments may increase or decrease as the Bank of England Base Rate changes.
could allow you to save money and reduce the term of your mortgage by using your savings - the amount of your savings is offset
against your mortgage and over the life of your mortgage you are only charged interest on the difference.
Buy to let mortgages - Buy to let mortgages are for borrowers who are buying
properties which they plan to let.
First time buyer mortgages
- A First time buyer mortgage is especially designed to make taking out your first mortgage as easy as possible.
These give you all the benefits of a mortgage but with no fees to pay during the life of the mortgage, including when you
apply, complete or redeem.Flexible Mortgage- These puts you in control by allowing you
to adapt your mortgage to suit your changing needs, for instance, you might want to take a payment holiday or make an underpayment