A Quick Guide To Mortgage Types

If you're looking to buy a house - whether you're a first-time buyer or simply looking to re-mortgage it can be quite a confusing time. This is why we've put together this quick guide to help clear up some of the confusion that surrounds the types of mortgages available.

So - what do you need to know?

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In theory a mortgage is quite straight-forward - it's essentially a very big bank loan (which sadly has to be paid back at the end of the agreed term) that helps you to purchase property.

However, as with any loan there are things you need to be aware of to ensure you're getting the best possible deal (and you understand what you're getting yourself into), including choosing the right one for you and your financial situation.

Mortgage Types

There are a quite a broad-range of mortgages available to you and it can get quite confusing, however, two of the most commonly occurring types tend to be "fixed-rate" and "tracker" mortgages.

Fixed-Rate Mortgages

Tracker Mortgages

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Discount Rate Mortgages

Standard Variable Rate Mortgages

 

There are other schemes out there; however, we strongly recommend discussing your requirements and options with a mortgage broker to find the best solution to suit you.