Mortgage Products
Mortgage rates, like all interest rates, can go up and down, and any change may affect your monthly payments. That’s why, instead of charging interest at the standard variable rate, many lenders offer various options to help you stay in control. Some lenders even offer combinations of the options shown below. Contact one of our mortgage advisers if you would like further guidance/advice on this.
The Standard variable-rate mortgage
With this type of mortgage your payments go up and down in line with the lenders standard variable rate. Mortgage interest rates usually move in line with the base rate set by the Bank of England, although there is often a delay between the two.
The Base-rate tracker mortgage
This is similar to a standard variable rate mortgage but the rate is directly linked to the Bank of England base rate and immediately alters with changes in that rate.
The Fixed-rate mortgage
As the name implies, with this type of mortgage your rate is fixed for a stated period of time. This could help to make budgeting much easier, and could be helpful when you’re buying your first home or starting a family for example.
The Discounted-rate mortgage
Many lenders offer discounts from their standard variable rate for a set period. This could be a good way for borrowers to keep repayments lower than the standard variable rate in the early years of the mortgage
The Capped-rate mortgage
With a capped mortgage your mortgage rate can vary, but only up to an agreed limit, the ‘cap’. Once at this limit, if mortgage rates go higher, then your mortgage rate, your repayments stay the same. If rates go below the capped rate, so will your repayments.
The CAT standard mortgage
The Government has set certain standards aimed to make it easier for you to choose a mortgage. These standards determine the mortgage’s ‘Charges’, ‘Access’ and ‘Terms’ (CAT).
The Cashback mortgage
Here, the lender offers a cash lump sum to new borrowers. This is paid after completion. The lump sum can be quite large – perhaps several thousand pounds. The cashback can be used in any way you wish, to pay for some home improvements, buy a car or even have a holiday. It’s up to you.