Mortgages

An offset mortgage is where the lender will offset any savings you have in place with them against your mortgage debt. You then only pay interest on the difference in the balance of your savings and your mortgage. This can potential save thousands of pounds and have your mortgage repaid quicker. Generally savings are not…

A Lifetime Tracker works the same as a regular tracker, however this is for the full term of the mortgage rather than an initial period. As this is a tracker product and tracking a rate specified by the lender, your mortgage payments may increase and decrease depending on the movement of the interest rate.

Tracker mortgages track a rate specified by the lender, typically the Bank of England base rate, at a set margin above or below it. This means your payment will change if there is any changes to the base rate

A fixed rate mortgage has a fixed interest rate for a set period of time, this is generally either 2,3,5,7 or 10 years. A fixed rate mortgage guarantees you know how much your monthly payments will be for the period you are fixed for.

On an interest only mortgage your monthly payments will only include the interest amount due and no capital will be repaid. This will mean you will have lower monthly payments. However you will need to have a way of repaying the capital at the end of the mortgage term.

On a repayment mortgage your monthly mortgage payment will include the interest for the month as well as a payment towards the initial capital borrowed. Typically as the amount owed decreases, the % of your monthly payment going towards interest will decrease whilst more will be used towards repaying the capital every month.