MORTGAGES

To help you understand mortgages in more detail here is our handy guide to the types of deals available.​

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• Tracker rate - this is based on the Bank of England rate and is either set at a % below or above this for an initial period. Alternatively, a lifetime tracker which is based in the same way for the term of the mortgage.

• Discounted rate - this is based on the lenders standard variable rate which is set by them, and is a certain % above or below this for an initial period.

• Fixed rate - these can be taken out over 2-10 years at a fixed % for this period of time so you are able to budget and to give peace of mind that you need not worry about interest rate changes. However please note that you may not be able to benefit from a reduction in the rate during the initial period’ or something to this effect.

• Capped rate - these are variable rate mortgages that do not go above a maximum set limit.

• Offset or current account - these allow you to link a current account and/or savings account to your mortgage enabling you to offset any balances within these against your mortgage balance.  They are especially attractive to higher rate taxpayers and you can also have access to your savings if you need them. However, please note, it could potentially be cheaper to use your savings to overpay on your mortgage instead.

• Flexible - these allow you to pay off lump sums, increase your monthly payment and borrow back extra money.