Mortgage types
Exploring Mortgages – A guide to the different types of Mortgages available
At Financial Advice Centre, we know that securing a mortgage and buying a property can be an emotional, pressurised, and time-consuming process.
Whether you are a first-time-buyer purchasing your first home, looking to move home, refinance, self-build or buy to let, we can help.
Our 5* rated Mortgage Team reviews the whole of the market to help you select the right mortgage package for your needs. Our independent mortgage advisers are more than just ‘mortgage brokers’ they are highly skilled advisers and guide you through the process as well as being on hand to answer your questions and ensure all the fine print and deadlines are taken care of so you don’t have to.
We aim to take the pressure off you and manage the process so there are no unnecessary delays.
Let’s explore the diverse range of mortgages that can help you achieve your homeownership dreams.
Fixed-Rate Mortgage:
Secure your financial stability with a Fixed-Rate Mortgage. With this type of mortgage, your interest rate remains fixed for a specific period, typically between 2 to 5 years or even longer. This means your monthly repayments will stay consistent during the fixed term, shielding you from fluctuations in the interest rate market.
Tracker Mortgage:
For those seeking flexibility and transparency, a Tracker Mortgage could be the perfect fit. This mortgage type follows the Bank of England’s base rate or the lender’s standard variable rate, with a fixed margin on top. As the interest rate changes, so will your monthly payments, providing the opportunity to benefit from falling rates while being aware of potential increases.
Discount Mortgage:
Looking for an affordable option? A Discount Mortgage might be your answer. This mortgage offers a discounted rate on the lender’s standard variable rate for a limited period, typically between 1 to 3 years. Enjoy lower monthly repayments during the discount period, but be prepared for potential increases when the discount ends.
Offset Mortgage:
Maximize your savings and reduce interest payments with an Offset Mortgage. By linking your savings account to your mortgage, you’ll only pay interest on the difference between your outstanding mortgage balance and your savings balance. This can help you pay off your mortgage faster and potentially save thousands in interest over time.
Standard Variable Rate (SVR) Mortgage:
The SVR Mortgage is the default rate offered by lenders after your introductory deal, such as a fixed or discounted rate, ends. While it provides flexibility, the SVR can be subject to fluctuations based on the lender’s discretion, so it’s essential to review and consider other options.
Buy-to-Let Mortgage:
Are you considering investing in property to let out? The Buy-to-Let Mortgage is designed for landlords, allowing you to borrow funds specifically for rental properties. Interest rates and eligibility criteria may vary, so consult with a specialist to explore your options.
First-Time Buyer Mortgage:
Getting on the property ladder for the first time? First-Time Buyer Mortgages are tailored to assist individuals taking their initial steps into homeownership. Some lenders offer exclusive deals and benefits to help make the process smoother for new buyers.
Self-Employed Mortgage:
For self-employed individuals, securing a mortgage can be challenging. A Self-Employed Mortgage considers your unique financial circumstances, allowing you to provide the necessary documentation to demonstrate your income and affordability.
Interest-Only Mortgage:
An Interest-Only Mortgage enables you to pay only the interest on the loan for a set period, which can lead to lower monthly payments. However, it’s essential to have a repayment plan in place as you’ll need to pay off the capital at the end of the mortgage term.
Navigating the mortgage landscape can be complex, but with our expert advisors, you can find the perfect mortgage type that aligns with your financial goals and circumstances. Whether you’re a first-time buyer, seasoned homeowner, or property investor, we’re here to help you make the right choice and turn your homeownership dreams into a reality. Contact us today to discuss your options and secure your future!
Your home and property may be repossessed if you do not keep up repayments on your mortgage.
The Financial Conduct Authority does not regulate some aspects of buy-to-let mortgages.