Mortgages
Looking for a new mortgage
or remortgage? Below are just some of the type of mortgages
availabale. See our Guide
to Getting a Mortgage for more information.
Variable rate
A variable interest rate means your regular mortgage repayments
will go up or down according to changes in the lender's Standard
Variable Rate (SVR). The Standard Variable Rate typically varies
in response to changes to the Bank of England’s base
rate.
Fixed rate
A fixed interest rate gives you some level of security as your
repayments will not change during the agreed period. However,
fixed rate mortgages may also come
with higher fees and tie-ins which make early repayments more expensive.
Capped rate
Capped rates typically vary according to the lender's Standard Variable
Rate (SVR) but will not rise above the set limit. You will get the benefit
if
interest rates drop but also limit the cost of your repayments if interest
rates rise.
Discounted variable rate
Discount mortgages offer a reduced interest rate for a set period. As with
a variable rate mortgage, repayments will go up or down according to changes
in
the lender's Standard Variable Rate (SVR). You will repay at the Standard
Variable Rate when the discounted period is over.
Offset
You can use the balance on your current account to reduce the interest
payments on your mortgage. Offsetting your accounts means your
savings are used more
effectively and because you don't receive interest on your current
account there's no tax
to pay.
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