Different types of mortgages
Every single one of our clients has a unique situation. That’s why with whole of market access we can find appropriate mortgages for you, at every stage of your life, including deals that aren't always available on the high street.
Your Amulet Mortgage Advisor will discuss the different types of mortgage products that are available, explaining the features of each type in full. Read on to find out more information about mortgage types.
What are the different types of mortgages in the UK?
1. Fixed mortgage
This will allow you to fix your interest rate for typically 2, 3, or 5 years which means your mortgage payments would stay the exact same for that time period.
2. Tracker mortgage
A mortgage rate that is a certain percentage above or below the Bank of England base rate for a period of time. This can mean that your monthly mortgage payments can fluctuate if the base rate was to increase.
3. Variable rate mortgage
The bank or lender decides the mortgage rate that you will pay which is usually based on market rates. This is the rate you will switch onto after the fixed rate time period has come to an end.
4. Discount variable mortgage
This is similar to the variable rate mortgage, but the lender will give you a discount on the rate for a certain period of time.
5. Offset mortgage
An offset mortgage is a home loan where savings held in a linked bank account with the lender are subtracted from the amount of mortgage that you pay interest on, meaning you can either pay less each month or pay off your mortgage more quickly.
Your home may be repossessed if you do not keep up repayments on your mortgage.