Fixed Rate Mortgages
With a fixed rate mortgage, the interest rate stays the same for a set period of time. This means that for every month during this set period, your mortgage repayments will remain the same.
Tracker Mortgages
A tracker mortgage is a type of variable rate mortgage. The interest rate tracks, for example, the Bank of England base rate at a set margin (for example, 1%) above or below it.
Discount Mortgages
A discount mortgage is a type of variable rate mortgage. The term ‘discount’ is used because the interest rate is set at a certain ‘discount’ below the lender’s standard variable rate (SVR) for a set period of time.
First Time Buyer Mortgages
If you have not previously owned a property you are classed as a first time buyer. Some lenders offer discounts on the fees and rates to first time buyers.
Offset or Flexible Mortgages
Offset mortgages allow you to use savings or current account balances you hold to help reduce the overall interest you pay on your mortgage, this can either help reduce the overall term of the mortgage or reduce your monthly payments. Funds held in either the current account or savings account can be withdrawn at any time and there generally is no maximum to the amount that can be held in the account
Buy to Let Mortgages
A buy to let mortgage is a mortgage secured on a property that will be let out. The mortgage can be set up either as an individual mortgage or as a limited company for tax efficiency. When compared to a main residence mortgage you will find that the mortgage rates and fees are typically higher on a buy to let mortgage.
Typically the mortgage is based on the rental income the property will achieve generally up to 75% of the purchase price.
Financial Conduct Authority does not regulate some forms of Buy-to-Let.
Important Information
Your home may be repossessed if you do not keep up repayments on your mortgage.