Mortgage Products

Types of mortgage products on offer from our various lendersinclude:

• Discount
• Fixed Rate
• Tracker
• Flexible
• Deferred Start
• Cashback

And more available from our MortgageExperts.

Discount mortgages

The rate of interest you pay is set at an amount below the lender's standard variable rate (SVR), and the rate you pay moves up or down in line with any changes to the SVR. This type of loan is cheaper than Standard Variable Rate at the start of your mortgage and allows you to take advantage of any interest rate cuts. But if interest rates rise, your monthly payments go up.

Most people find that buying a home - and especially their first - can leave them a bit financially stretched. Anything that keeps repayment costs down in the first year can be a big help, especially you have the extra expense of re-decorating and furnishing.

The discount you enjoy in the first few years of your mortgage can mean a big saving, however the discount usually means you are tied into your mortgage during the discount term. So, if you change your plans and need to repay your mortgage during the discount term, you will have to pay an Early Repayment Charge. However if you simply need to move house, you can usually take your mortgage with you.

Fixed Rate mortgages

The rate of interest on your mortgage is fixed for a set period of time regardless of whether the Base Rate or the lender's Standard Variable Rate changes.

Typically mortgages have rates that change over time - with the effect that repayments can go up as well as down. This can make budgeting difficult, but a fixed rate mortgage can help. Fixed rate mortgages are suitable for those who prefer to know exactly what their monthly outgoings will be and are averse to the risk of rates increasing. An Early Repayment Charge may apply if the mortgage is repaid during the fixed period.

Remember, if interest rates fall, you may miss out on a reduction in your monthly payments.

Tracker mortgages

Your mortgage interest rate is linked to the base rate for a set period. So if the base rate goes up so will the rate of interest you will have to pay on your mortgage, but if the base rate falls so will your monthly repayments.

Flexible mortgages

This type of mortgage is designed to accommodate your changing financial needs. It may allow you to overpay, underpay or even take payment holidays. You may also be able to make penalty free lump sum repayments.

Deferred Start

Deferred start mortgages are mortgages where you can postpone repayments for one, two or three months at the start of the mortgage. Often mortgage providers will provide flexibility to first time buyers or those who need some financial comfort at the start or during the life of the mortgage to ease your personal financial burden. There are also a host of other mortgage options which have been developed by lenders in response to the needs of first time buyers.

Cashback mortgages

You receive a lump sum or percentage of your loan in cash when you complete your mortgage.

It is always important to remember that interest rates do rise as well as fall. All lenders have strict repayment policies.

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.