Step 6: Get knowledgeable on types of mortgages

 

Did you know that there are at least 5 different types of mortgage products?

Exploring mortgage types and finding the one that suits you best, can save you money!

 

Mortgage types and what they mean

 

Do you know that there are many types of mortgages on offer?

The most common on offer to residential mortgages would be either Fixed Rate or Variable Rate.

 

What are these?

Fixed Rate does what it says and fixes the interest rate on the mortgage, most commonly for 2 to 5 years. Allowing you to have the security knowing the same payments will be coming out each month.

Variable Rate would mean that the interest is likely to fluctuate depending on the Bank of England Base Rate. Resulting in differing, unsecure, payment amounts each month.

Others available are:

- Tracker

- Green

- Flexible

- Offset

- Discount

- Plus more

 

What mortgage am I on and should I continue as I am?

 

You'll know this information from following the previous steps. Think about your situation and which of the types would suit your circumstances and affordability. Do you want to secure monthly payments or do you want to hold out for potential dips in rates and reap the benefits?

 

Speak to a broker to talk about these in more detail and to discuss which would best suit your needs and circumstances