Fixed Rate Mortgage. This type of mortgage is perhaps what most mortgagors or borrowers are most familiar with. If you avail of a fixed rate mortgage, you will bear an interest rate that remains unchanged no matter what the economic situation is or even if a mortgage provider alters its current rates. This will be advantageous to you if the interest rates have soared up high in the financial market.
Standard Variable Rate. The standard variable rate or SVR mortgage is often the type of mortgage that banks or mortgage providers would initially offer. There’s nothing complicated about this mortgage. In case the rates fluctuate or if the mortgage providers or banks decide to increase or decrease their rates, the amount of mortgage that you’ll be paying will definitely change.
Fast-Track Mortgage. This mortgage is ideal for you if you’re in dire need to obtain a mortgage. However, for you to be granted of this loan, you need to have a good credit record. The submission of several requirements is usually ruled out in the process.
Discounted Rate Mortgage. With this mortgage type, mortgage providers grant discounts to its borrowers based on the standard variable rate. For instance, you may obtain .5% or 1% based on the SVR that you and your mortgage provider have agreed upon. You can save money if the interest rates decline, but you will have to pay higher mortgage repayments if once it rises.
Buy to Let Mortgage. This mortgage is often availed by people who acquire properties for the purpose of renting it out. This is one of the best ways to engage in a realty business, but you also need to know that it has more requirements than any other mortgages because it involves more risks.
Capped Rate Mortgage. Also using the SVR as a basis, this type of mortgage follows a standard base rate and any changes implemented by the mortgage provider, but only to a certain extent, which means that there is a ceiling or a limit to the rates being charged. This mortgage will prevent you from paying superfluous interest rates that are usually dictated by the current economic and financial situation.
Cashback Mortgage. This mortgage may sound very appealing as your mortgage provider will give back a certain amount of money once you’ll be able to fully pay your mortgage. However, do not expect that much because the interest rate that will be applied is high, which means that your cashback will be lower that you expect it to be.