Fixed Rate Mortgages: These allow you to fix your mortgage rate for a set period of time – no matter what UK interest rates generally do. This gives you the security of knowing your monthly mortgage repayments will not change during the fixed rate period. Of course, this is particularly good for you if rates rise, as your mortgage repayments will remain the same. There are usually early redemption charges if you re-mortgage before the end of the fixed-rate period. Click here for our
Fixed Rate Mortgage Best Buys.
Discounted Rate Mortgages: Here you are charged a mortgage rate that is lower than your mortgage lender’s Standard Variable Rate (SVR) for a set period of time. If UK interest rates fall then your mortgage repayments should fall too. Of course if UK interest rates rise then so will your mortgage repayments, though you will still benefit from the discount while it lasts. An early redemption charge is normally payable if you re-mortgage before the end of the discounted period. Click here for our
Discounted Rate Mortgage Best Buys.
Capped Rate Mortgages: These mortgages place an upper limit on the interest you pay - regardless of how high UK interest rates rise. If those rates fall considerably and your mortgage lender reduces their SVR below the cap, then the mortgage rate you pay will also fall. There is normally a redemption charge if you re-mortgage before the end of the capped period. Click here for our
Capped Rate Mortgage Best Buys.
Tracker Mortgages: Suitable if you wish to link your monthly repayments directly with UK interest rates – rather than with a mortgage lender’s Standard Variable Rate (SVR). The mortgage rate you actually pay will normally be the UK interest rate plus or minus a certain percentage. The advantage is that you should get a better mortgage rate than the mortgage lender’s SVR, at least for a limited term. The downside is that your monthly repayments will change as UK interest rates change and are therefore unpredictable. Click here for our
Tracker Mortgage Best Buys.
