Compare Mortgages

Additional Information

• Information about Different Types of Mortgages:
  • Variable Rate Mortgage:
    • Tracker mortgage – this type of mortgage has an interest rate that’s tied to the Bank of England base rate. The mortgage changes with the base rate. Most trackers last two or five years, but you can get lifetime (also known as term) tracker mortgages.
    • Discount – another type of variable mortgage, discount mortgages are different from trackers in that they’re not tied to the Bank of England base rate – they’re a bit more unpredictable. Instead, they’re linked to the lender’s standard variable rate (SVR), usually for between two and 10 years. With a discount mortgage, your monthly repayment could fall as well as rise.
    • Standard variable rate (SVR) – this is the long-term rate of interest that mortgage lenders will charge once their fixed or introductory discounted or tracker period ends. This is often much higher than the rate you could get during the initial deal term of a mortgage. Although mortgage lenders roughly track the Bank of England base rate, they can decide to increase or decrease their SVR whenever they want.
  • Fixed Rate Mortgage: With a fixed-rate mortgage, the interest on your mortgage is fixed at a set interest rate for an agreed period of time, typically between two and 10 years. This type of mortgage could be good if you need to stick to a budget. Once the fixed rate deal is over, you’ll be automatically switched to your mortgage provider’s standard variable rate (SVR) unless you choose to find a new deal.
  • Interest Only Mortgage: As the name suggests, with an interest-only mortgage you only pay the interest on the loan. This could mean lower monthly repayments, but it also means that at the end of the mortgage term you’ll still have to pay back what you borrowed. You’ll need to have a plan in place to do this when you take out the mortgage – for example, you could pay off the outstanding balance with savings or by selling your property.