Property

What Types of Mortgages Are There?

kai-money-what-types-of-mortgages-are-there

There are two main types of Mortgages, these are:

Repayment Mortgages – Where you pay back a bit of the loan and a bit of interest every month

Interest-Only Mortgages – Where you pay back the interest each month and only pay back the original loan at the end of the mortgage term.

Now, there are a few different types of mortgage deals that you need to know about:

Fixed-Rate Mortgages – These are really simple, you just pay the same interest rate until the end of the Mortgage.

Tracker Mortgages – The interest rate you pay follows (tracks) the Bank of England base rate. So the interest you usually pay is Base Rate (Bank of England) + your mortgage rate.

Discount Mortgages – You only pay the standard variable rate of the lender, with a little discount

Offset Mortgages – This uses money that you have in a savings account to reduce the amount of the loan a.k.a mortgage that you pay interest on.

What Are The Best Mortgage Deals?

Halifax 2 Year Fixed
Maximum LTV
60%
Initial Rate
1% fixed for 2 years
Subsequent Rate (SVR)
4% variable
Overall Cost
4% APRC
Lloyds Bank 2 Year Fixed Remortgage
Maximum LTV
60%
Initial Rate
1% fixed for 2 years
Subsequent Rate (SVR)
4% variable
Overall Cost
4% APRC
Monmouthshire 2 Year Fixed Mortgage
Maximum LTV
95%
Initial Rate
2.2% fixed for 2 years
Subsequent Rate (SVR)
5.2% variable
Overall Cost
4.8% APRC
Barclays 2 Year Fixed
Maximum LTV
60%
Initial Rate
1.9%
Subsequent Rate (SVR)
4.2% variable
Overall Cost
4% APRC
Halifax 2 Year Fixed
Maximum LTV
60%
Initial Rate
1% fixed for 2 years
Subsequent Rate (SVR)
4% variable
Overall Cost
4% APRC
Nationwide Tracker Mortgage
Maximum LTV
75%
Initial Rate
1.4% Tracker for 2 years
Subsequent Rate (SVR)
4.2% variable
Overall Cost
3.7% APRC
Natwest
Maximum LTV
75%
Initial Rate
1.3% Tracker for 2 years
Subsequent Rate (SVR)
4.2% variable
Overall Cost
3.9% APRC
Leeds Building Society Discounted Variable Mortgage
Maximum LTV
75%
Initial Rate
1.4% Discounted Variable for 2 years
Subsequent Rate (SVR)
4.4% variable
Overall Cost
4.8% APRC
Monmouthshire 2 Year Discount Mortgage
Maximum LTV
8%
Initial Rate
2% fixed for 2 years
Subsequent Rate (SVR)
5.2% variable
Overall Cost
4.8% APRC
Coventry Building Society 2 Year Fixed Offset
Maximum LTV
50%
Initial Rate
1% fixed for 2 years
Subsequent Rate (SVR)
5% variable
Overall Cost
4% APRC
Yorkshire Building Society 2 Year Fixed Stepped Offset
Maximum LTV
65%
Initial Rate
2% fixed for 2 years
Subsequent Rate (SVR)
5% variable
Overall Cost
4% APRC

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