Types of mortgages
Finding a remortgage to suit you can be overwhelming. However by assessing your current financial situation, with respect to the affordability and costs involved, you should be able to indentify which mortgage is right for you and how much you can borrow. View our best buy tables to view our current range of mortgage products from our lenders.
When choosing a mortgage, there are many types to choose from:
Fixed rate mortgage
A fixed rate mortgage charges a fixed interest rate for a set period of time.
Discount mortgage
A discount mortgage offers a discount on the standard variable rate over a fixed period. If you want to keep your monthly repayments at a lower level for the initial years following your remortgage, a discounted remortgage could be right for you.
Tracker mortgage
A tracker mortgage is a variable rate mortgage which tracks the Bank of England’s base rate, so your repayments will fluctuate according to market interest rates. Borrowers benefit immediately if the lenders drop their interest rates, as their monthly repayment drops accordingly.
Offset mortgages
Offset savings or current account deposits are set against your mortgage debt in one single account. Account holders avoid paying tax on the interest of their deposits. Lenders calculate interest daily, so every pound in deposit works hard at reducing your mortgage debt.
Cash Back
A cash back mortgage gives a cash rebate upon completion of the purchase. The value of the rebate is usually a percentage of the advance or a fixed amount. The rebate could then be used to cover some of the costs of remortgaging.
Flexible
A flexible mortgage allows you to make over payments, borrow back over payments, underpay and take payment holidays.
Interest Only
In an interest only mortgage the repayments only cover the interest on the mortgage loan amount and do not pay back any of the loan amount.
Buy-to-let mortgages
A buy–to-let mortgage is specifically designed for people who would like to invest in the property market by purchasing and owning more than one property which they rent out.
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In a turbulent mortgage market, it makes sense to get expert advice - mistakes can prove to be very expensive long term.
