Types of Mortgage Rates Available

When it comes to finding a mortgage, the possibilities are endless. However, being overwhelmed by choice doesn’t mean you should take whatever is offered to you first. Contact me for information about different types of mortgage loans and I’ll be happy to explain them and help you find one that suits your needs and preferences.

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

Fixed Rate Mortgage

Generally, this has been seen as the more popular choice of rate for borrowers as it guarantees the monthly payment on the loan for a certain time. The standard options in the market are 2, 3 and 5 year fixed but some lenders do offer longer choices. In most cases, you will be tied to the lender for the duration of the fixed rate so it is important to consider how long you will want to keep the mortgage for so that you do not fix for longer than that timeframe.

Tracker Mortgage

This type of mortgage rate is variable but any changes are ordinarily tied to the Bank of England base rate. Quite often a tracker rate mortgage will not have any early repayment charges meaning the mortgage can be fully or partially redeemed without penalty which is good for those that think they will be able to pay the mortgage off faster or are not sure how long they will be keeping the mortgage for.

With this being a variable rate mortgage, payments can go up as well as down so it is vital to consider if you will be able to afford the mortgage if rates rise. This is an important consideration when taking this type of mortgage rate. We can provide an indication of what the payments will be should rates rise so please feel free to ask if required. The mortgage illustration and offer documents can also be helpful for this information.

Discount Mortgage

This is a type of variable rate mortgage where the lender offers you a discount on its standard variable rate for a fixed period of time, typically a couple of years. There are less lenders offering this type of rate these days as they do not prove as popular as tracker rates but we can discuss these rates with you if they are of interest.

Similar to tracker rates, it is important to consider the affordability with the fact that rates can rise as well as fall. A mortgage is a long term commitment so it is vital to think about the possibility of higher payments when taking out this type of mortgage.

Offset Mortgage

An offset mortgage can be a useful option for those that have savings that they wish to keep access to but use to reduce the interest charged on the mortgage. The lender will open an account to run alongside the mortgage and any money invested is then used to either lower the monthly payments on the loan or reduce the term of mortgage.

You won’t be using your savings to pay off your mortgage, and it won’t reduce your loan amount.

Spirit Mortgages Limited, trading as Spirit, is an Appointed Representative of HL Partnership Limited, which is authorised and regulated by the Financial Conduct Authority. Spirit Mortgages Limited is registered in England, number 13301540. The registered office address is 83 Victoria Street, London, SW1H 0HW.

There will be a fee for our residential mortgage service of £499 (£299 for remortgages) which is payable on application. For buy-to-let and let-to-buy our fees are £599 for purchases and £399 for remortgages. We will retain the commission from the lender.

The guidance and/or advice contained within this website is subject to the UK regulatory regime and is therefore primarily targeted at consumers based in the UK.

Types of Mortgage Rates Available

Fixed Rate Mortgage

Tracker Mortgage

Discount Mortgage

Offset Mortgage

There will be a fee for our residential mortgage service of £499 (£299 for remortgages) which is payable on application. For buy-to-let and let-to-buy our fees are £599 for purchases and £399 for remortgages. We will retain the commission from the lender.

The guidance and/or advice contained within this website is subject to the UK regulatory regime and is therefore primarily targeted at consumers based in the UK.

The Financial Conduct Authority does not regulate some forms of Buy to Lets.

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

Data Protection

Cookies

Complaints

Types of Mortgage Rates Available

Fixed Rate Mortgage

Tracker Mortgage

Discount Mortgage

Offset Mortgage

​

There will be a fee for our residential mortgage service of £499 (£299 for remortgages) which is payable on application. For buy-to-let and let-to-buy our fees are £599 for purchases and £399 for remortgages. We will retain the commission from the lender.

​

The guidance and/or advice contained within this website is subject to the UK regulatory regime and is therefore primarily targeted at consumers based in the UK.

​

The Financial Conduct Authority does not regulate some forms of Buy to Lets.

​

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

​

Data Protection

Cookies

Complaints