Put simply a mortgage is a loan secured on a property, this may be a flat, house etc. There are, in essence, 4 main types of mortgage, it should be stated that failure to keep up with these payments could put the home at risk of repossession.
Tracker mortgage
With a tracker mortgage, your interest rate is based on the Bank of England base rate, for instance, you may pay a base rate + 3%. There may be a lower introductory rate.
Lifetime tracker mortgage
There are a small number of ‘lifetime’ trackers where the charged rate will track the Bank of England base rate for the entire mortgage term.
Discount mortgages
With a discount mortgage, the lender allows a discount off their standard variable rate (SVR), this may be stepped so that your initial payments are more affordable.
Buy to let mortgage
As the title suggest this is when a mortgage is taken out on a property that the buyer intends to rent out, the rate for such a mortgage is slightly higher.
Our advice in regards to taking out a mortgage is to be realistic about your earnings and to consider the various types available, there are many specialist sites and publications available on the subject and professional advice should be sought.
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