Your options explained
Don't worry if you're a little rusty. That's why we're here. There are many different types of mortgage, that's true. But only a few of them will be right for you. It's our job to help you narrow it down and find one that suits you and your circumstances perfectly. Here's a reminder of the main 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 (capped) level, for an agreed period of time. So you know what the maximum payments will be but can also benefit from a fall in rates.
- 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 ECB rate). Your rate will go up and down with it.
