Mortgages; What Are The Options Available?

What Is A Mortgage?

A mortgage is a loan secured against a property. It allows you to borrow money to buy or refinance a home, with the loan repaid over an agreed term.

Repayment Mortgages

With a repayment mortgage, your monthly payment is designed to cover both interest and part of the loan. If all payments are made as agreed, the mortgage should be repaid by the end of the term.

Interest-Only Mortgages

With an interest-only mortgage, your monthly payment usually covers the interest only. The original loan is not automatically repaid during the term, so you need a suitable repayment strategy. This could include selling a property, investments or another acceptable plan, subject to lender criteria.

Fixed-Rate Mortgages

A fixed-rate mortgage keeps your interest rate the same for an agreed period. This can provide payment certainty during the fixed period, although your payments may change when the deal ends and you move to another rate.

Tracker Mortgages

A tracker mortgage usually moves in line with a benchmark rate, such as the Bank of England base rate, plus a set margin. Payments can rise or fall, so it is important to consider whether that flexibility and risk fit your budget.

First-Time Buyer Mortgage Options

First-time buyers may have access to mortgage options designed for smaller deposits or new buyers, depending on lender criteria and affordability. A broker can help you understand what may be available and what documents are needed.

Our First Time Buyers guide explains the process in more detail.

Why Speak To A Mortgage Adviser?

Mortgage options can feel similar at first glance, but the details matter. An adviser can help you compare product types, fees, affordability, lender criteria and the longer-term fit. Advice does not guarantee approval or a particular outcome, but it can help you make an informed decision.

You may also want to review your mortgage when moving home or when your current deal is ending. Our Remortgage page explains more.