Different types of mortgages
Whether you are buying a house or remortgaging, having a sizeable loan comes with risk. To start with you will need to look at whether you want a capital repayment mortgage, where you pay off the interest and a bit of the capital at the same time or an interest-only mortgage. Then we can look at the type of mortgage that would be most suitable for you. There is a fixed rate mortgage, where your mortgage rate is fixed for a set number of years and you know exactly how much you’ll be paying each month. Variable rate mortgages are fixed payments every month but interest rates affect how the payment amount is applied to the mortgage. 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.