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What Are The Different Types Of Mortgages?

There are capital repayment mortgages where you pay off the interest and a bit of the capital at the same time. Interest-only mortgages do what they say, you just pay off the interest only amount. Then there are fixed rate, variable rates and trackers. With a fixed rate your mortgage rate is fixed for a set number of years, normally around three or four years, and you know exactly how much you’ll be paying each month. With variable rate mortgages there are fixed payments but interest rates affect how the payment amount is applied to the mortgage. Although the variable interest rate may change monthly, the monthly payments remain fixed, in most cases for the full term.  Tracker mortgages move in line with a nominated interest rate which is usually the Bank of England base rate. When the base rate goes up the mortgage rate will go up by the same amount but it will also reduce when the base rate goes down. There are also discounted rate mortgages, capped rate, cashback, offset, flexible, first time buyer and buy-to-let mortgages for those renting out a property. It’s a bit of a minefield so make sure you get in touch so we can help you get what is right for you and your circumstances.


‘The Financial Conduct Authority do not regulate some buy to let mortgages

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