Mortgage Types

Fixed Rate Mortgages

Your interest rate is locked for a set period (e.g., 2, 3, 5, or 10+ years), meaning your monthly payments remain exactly the same regardless of market changes.

Interest-Only Mortgages

You only pay the interest due each month, not the loan balance. The capital debt remains the same and must be paid off as a lump sum at the end of the term.

Tracker Rate Mortgages

A variable rate mortgage where the interest rate "tracks" the Bank of England Base Rate plus a set percentage, so your payments rise or fall when the Base Rate changes.

Dutch-Style Mortgages

A long-term fixed mortgage where the interest rate automatically falls as your balance decreases and you move into a lower Loan-to-Value (LTV) band.

Part Interest Part Repayment

A hybrid deal where you pay part of the loan on a repayment basis (clearing capital) and the other part on an interest-only basis to lower monthly costs.

Green Mortgages

Products that offer lower interest rates or cashback to borrowers buying energy-efficient homes (typically Energy Performance Certificate rating A or B) or making eco-friendly improvements.

Offset Mortgages

Links your mortgage to your savings account. You don't earn interest on the savings, but the savings balance is deducted from your mortgage debt when calculating interest, lowering your monthly payment or term.

Capped Rate Mortgages

A variable rate mortgage with a "ceiling" or cap. Your rate can move up and down, but it will never go higher than a specifically set maximum rate.

Cashback Mortgages

A mortgage that pays you a lump sum of cash upon completion. This can help with moving costs or furnishings, but the interest rate is often slightly higher than standard deals.

Discounted Rate Mortgages

A variable rate deal where the interest rate is set at a fixed "discount" below the lender’s standard variable rate (SVR) for a specific period.

Enhanced Lifetime Mortgage

A form of equity release where people with certain medical conditions or lifestyle factors (like smoking) can release more cash or get a better rate due to reduced life expectancy.

Family Springboard Mortgages

Allows a family member to help you buy a home with a 0% deposit by placing 10% of the property value into a savings account as security, which they get back with interest after a set time.

Flexible Mortgages

Deals that offer features like the ability to overpay, underpay, or take payment holidays without incurring early repayment charges.

Large Mortgages

Specialist loans designed for high-net-worth individuals borrowing significant sums (often over £1 million), where lenders look at assets and bonuses rather than just standard income multiples.

Repayment Mortgages

The standard mortgage type where your monthly payment covers the interest and pays off a portion of the debt, ensuring the loan is fully cleared by the end of the term.

Retirement Interest-Only (RIO)

Similar to a standard interest-only mortgage but designed for older borrowers. There is no fixed end date; the loan is repaid when you die or move into care.

Variable Rate Mortgages

Any mortgage where the interest rate can change. This includes the lender’s Standard Variable Rate (SVR), which they can change at their discretion.