Types of Mortgages

Variable

Variable

Interest rates set by lenders rise and fall throughout the term of the mortgage. Your mortgage payments will fluctuate.

 
Discounted

Discounted

Some lenders offer a discount on their standard variable rates as an incentive for their new borrowers. The discounts are usually for a short period after which time the standard variable rate is applied. With a discount mortgage your monthly payments can rise or fall.

 
Base Rate Tracker

Base Rate Tracker

The Bank of England sets its base rate each month independently of mortgage lenders. The interest charged on a tracker mortgage is linked directly to, and will rise and fall in line with, the Bank of England base rate. This type of mortgage may also be offered with a limited period discount or other incentive.

 
Fixed

Fixed

For a limited period, the interest rate applied to these mortgages is fixed regardless of the variable rates. This gives stability of payment and is clearly a benefit during times of rising interest rates, but could be a disadvantage if interest rates were to fall.

 
Capped

Capped

Capped mortgages set to a maximum limit on the interest rate charged. Payments and rates may rise or fall, but will not exceed this maximum limit. The maximum limit will usually last for a limited period only.

 

Cashback

On completion of the purchase a sum of money is paid to the purchaser if a cashback is applicable.

 

Offset

In bringing together your Current & Savings accounts we can use the money you have in credit to off-set against your mortgage debt. By making the same money work harder this can produce amazing savings.

Douglas Allen and Mortgage Matters Direct are trading names of Arun Estate Agencies Ltd. Mortgage Matters direct is an appointed representative of Home In One Financial Services Ltd which is authorised and regulated by the Financial Services Authority (FSA). Home In One Financial Services Ltd are permitted to advise on and arrange mortgages and non-investment life and general insurance products. You can check this on the FSAs register by visiting the FSAs website www.fsa.gov.uk/register or by contacting the FSA on 0845 6061234. The FSA does not regulate Buy to Let Mortgages and different terms of business apply to these.

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

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