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Bank rate change: On 2 November 2017, the Bank of England announced that the Bank Base Rate would increase with immediate effect from 0.25% to 0.50%. Find out more

A guide toour mortgagetypes

This quick guide explains the types of mortgage we offer, the differences between them, and which type could be right for you.

Fixed rate mortgages

Mortgages that let you rest easy, knowing that your interest rate will remain fixed for a specified length of time.

With a Fixed rate mortgage, you have the chance to secure your interest rate for a set period of time so you don't have to worry about fluctuations in the Bank of England base rate.

A Fixed rate mortgage could be right for you if:

  • you're on a fixed budget
  • you like to plan your finances in advance
  • you want your interest rate to remain fixed for a set time

You have the right to repay the loan either partially or in full during the term of the loan.

If you want to come out of a Fixed rate mortgage before the end of the special rate period, early repayment charges will apply.  Please see the individual Fixed rate product pages for details.

Ready to find a mortgage?

If you are happy that Fixed rate mortgages might be the best option for you, why not choose from our current range of Fixed rate mortgages.

Offset mortgages

With an Offset mortgage you can use your savings to offset against the balance of your mortgage and reduce the interest you pay.

An Offset mortgage could be right for you if:

  • you have savings
  • You want the option to fix your interest rate for a set time or track the Bank of England base rate
  • you'd like to be mortgage-free sooner, or:
  • you'd like to bring down your monthly payments

You have the right to repay the loan either partially or in full during the term of the loan.

If you want to come out of an Offset mortgage before the end of the special rate period, early repayment charges will apply.  Please see the individual Offset product pages for details.

Your Offset Mortgage and Offset Savings accounts remain separate, so you still have access to your savings, but your savings reduce the interest charged on your mortgage. There are three options to choose from when looking into an offset mortgage:

  1. reduced monthly mortgage payments now
  2. reduced monthly mortgage payments in the future
  3. reduced term of your mortgage.

You decide which option you’d like when you first take out your Offset mortgage and you can change this at any time during the life of your mortgage simply by contacting us. You can read more about the specific options by reading our guide to your Offset options.

As well as your own savings, you can also link savings of family and friends to your mortgage by using our Offset Plus feature.

Looking to find out more?

Take a look at our comprehensive guide to Offset mortgages to find out more about the different options open to you.

Ready to find a mortgage?

If you are happy that Offset mortgages might be the best option for you, why not choose from our current range of Offset mortgages.

Tracker mortgages

Mortgages that follow the Bank of England Base Rate, so your monthly payments may go up but you could save money while the Base Rate remains low.

Our tracker products usually have a minimum rate of interest applied to them (referred to as a 'collar'). This means that when the Bank of England Base Rate falls, the interest rate you pay also falls by the same amount but it cannot go any lower than the minimum rate of interest payable; ie. the collar.

A Tracker mortgage could be right for you if:

  • you want a variable rate of interest
  • you think interest rates will stay low for the foreseeable future
  • you accept the risk that your monthly payments may increase

A maximum rate of interest if applied to a Tracker product is called a “cap”. This means that if the Bank of England Base Rate increases, the interest rate you pay will not go above this maximum/cap.

You have the right to repay the loan either partially or in full during the term of the loan.

For details of the early repayment charges payable before the end of the special rate period, please refer to the individual product details.

Ready to find a mortgage?

If you are happy that Tracker mortgages might be the best option for you, why not choose from our current range of Tracker mortgages.

Need more help?

Mortgage calculators

These tools can help you understand how much you could be paying each month and how much we may be prepared to lend you to make it easier for you to select the right mortgage.

Key Facts Illustration (KFI)

Our online tool will provide you with a comprehensive summary of any product available to you, including the amount of the monthly payments and any fees which you must pay.

 

Request an appointment

Our qualified Mortgage Advisors can help you every step of the way.