Which Mortgage?

We want you to have the mortgage you are most comfortable with.

There are several different types of mortgage available. Your circumstances and priorities will determine which one is right for you.

If you're on a fixed salary then a fixed monthly payment might be best; while if you receive a basic salary plus large bonuses, you may prefer greater payment flexibility. You can also repay your mortgage in different ways - repayment, interest-only or a combination of both.

As each person's circumstances are different, so is each solution. But don't worry – we've got them all!

Finding the right mortgage

  • Variable
    Variable

    Interest rates set by lenders rise and fall throughout the term of the mortgage. Your mortgage payments will fluctuate.

    Discounted
    Discounted

    Some lenders offer a discount on their standard variable rates as an incentive for their new borrowers. The discounts are usually for a short period after which time the standard variable rate is applied. With a discount mortgage, your monthly payments can rise or fall.

  • Base Rate Tracker
    Base Rate Tracker

    The Bank of England sets its base rate each month independently of mortgage lenders. The interest charged on a tracker mortgage is linked directly to, and will rise and fall in line with, the Bank of England base rate.

    Fixed
    Fixed

    For a limited period, the interest rate applied to these mortgages is fixed regardless of the variable rates. This gives stability of payment and is clearly a benefit during times of rising interest rates, but could be a disadvantage if interest rates were to fall.

  • Capped
    Capped

    Capped mortgages set a maximum limit on the interest rate charged. Payments and rates may rise or fall, but will not exceed this maximum limit. The maximum limit will usually last for a limited period only.

Appropriate payment plan

  • Repayment
    Variable

    You repay both the interest and the original capital sum gradually over the term of the mortgage. Provided all payments are made in full and on time, the full loan is guaranteed to be repaid at the end of the term.

    Interest-Only
    Discounted

    You do not make any capital repayments. Your monthly payments are correspondingly lower but the original capital sum remains outstanding at the end of the term. There are risks associated with this type of mortgage.

  • Part& Part
    Base Rate Tracker

    Some people may choose to combine interest only and repayment where they expect to be able to make a lump sum payment in the future.


YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE