Choosing the right type of mortgage affects your monthly payments and financial security. Here are the main types.
Fixed rate
Your interest rate is fixed for a set period (typically 2, 3 or 5 years). Monthly payments are predictable. You may face an early repayment charge if you leave the deal early.
Variable rate / SVR
The lender can change the rate at any time. Monthly payments can go up or down. Useful if you may need to move or pay off the mortgage.
Tracker
Tracks the Bank of England base rate plus a set margin. Rises and falls in line with base rate changes. Offers transparency but less certainty.
Offset
Your savings reduce the balance on which you pay interest. Useful if you have significant savings but want mortgage flexibility.
This is general information. Speak to a whole-of-market mortgage broker for advice on the right mortgage for your circumstances.