2 - Let's talk choices
There's lots of different types of mortgage around, probably more than the last time you took one out. Mortgages are our specialist subject. We'll give you all the information you need to help you choose the right one, in a way that doesn't make your head explode.
The 5 basic mortgage types:
- Variable. The standard mortgage type. So called because the rate can change.Your payments can increase or decrease.
- Fixed. You guessed it, the rate stays the same. For an agreed period (usually between 1-5 years) your payments stay the same. We also have deals where you can fix your mortgage payments for up to 10 years.
- Capped. This is a variable rate mortgage that won't rise above a certain level, for an agreed period of time. So you know what the maximum payments will be but will also benefit if the rate falls.
- Discounted. This is basically a variable rate mortgage that offers a lower rate for a promotional period. Making your initial payments much easier to manage.
- Tracker. As the name suggests this type of mortgage tracks the movements of a benchmark rate, normally the European Central Bank Rate. Your rate will go up and down with it.
Further options
Choices, choices, choices. In addition to the 5 basic types of mortgage, there are a few other options to consider. But don't worry we'll help you weigh up the pros and cons.
