Mortgage Rates & Types

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Introduction to Mortgage Types - click here for a quote

Mortgages can be categorised into a small number of basic types with slight variations added by the lenders to make theirs stand out as different. They are:

The variations can include:

Stepping the mortgage rate so that it starts lower and then increases a year or two later
Providing various levels of cash-back with the mortgage loan
Building-in flexibility to allow overpayments if the borrower can afford it
Mixing the schemes, i.e. fixed rate mortgage for one year and capped rate mortgage for the next two

These are only examples. Each of the four types contains a graph which attempts to show the basic differences in diagrammatic form. They have been exaggerated somewhat to try and clearly identify their individual traits.

Your home may be repossessed if you do not keep up repayments on your mortgage

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Telephone: 01452 741459

E-mail: Mortgage Arrangers