Types of mortgage

When you apply for a mortgage we help you to make an informed decision about which mortgage is most suitable for your circumstances.  We advise on both large mortgages over £500k and 75% loan to value mortgages or less. This will depend on an assessment of your income/outgoings and how quickly you are able to repay your mortgage. The majority of mortgages are based on a 2, 3 and 5 year repayment term.

We explain the options to choose from below:

Pricing options	Fixed rate mortgages Monthly repayments stay the same each month giving you security and certainty Can be flexible to allow you to repay more quickly over time Two year fixed rates most popular in UK   More expensive than tracker options but are less risky and more predictable	Tracker mortgages Mortgage repayment will vary according to changes in the Bank of England base rate and not the lenders Standard Variable Rate (SVR) Flexible and can be arranged without early repayment charges Cheaper than fixed rate mortgages but are less predictable.
Structure	Discounted rates Linked to lender’s standard variable rate (SVR) which moves up and down at the lenders discretion Not linked to changes in Bank of England base rate but changes in lenders variable rate Lenders will not always pass on any savings made but will often pass on increased rates	SVR Default lender rate for when mortgage term expires Rates are rarely competitive and do not offer value for money compared with market rates The lender is not obligated to pass on cost savings if rate goes down
Repayment options	Repayment Provides most secure plan for paying off your mortgage with a set time This payment covers the interest of the loan as well as some of the debt Interest owed will decrease over time as the period of the loan matures Cost effective and reliable	Interest only Monthly payment only High risk Covers only the interest on the loan, not its repayments You must be able to meet the full repayment of the mortgage at the end of the term In order to repay an interest only mortgage you may need another financial product such as a pension, ISA, investment portfolio or trust.