What are the different types of mortgages?
The best mortgage for you will depend on your circumstances, plans, and whether you want to live in or rent out the property.
A fixed-rate mortgage will mean your monthly payments should stay the same until an agreed date, no matter what happens to interest rates in the market.
Tracker mortgages follow the Bank of England’s Base Rate and rise or fall along with it. The interest rate charged is the Bank of England’s Base Rate plus an agreed margin. There are ‘lifetime’ trackers for the life of the mortgage and term trackers, which may be for 2 or 3 years.
The SVR is the rate of interest that’s usually charged once a fixed rate or term tracker period ends. You can often move to another fixed mortgage or tracker product instead of moving onto a SVR.
