• Buy to Let Mortgage

A buy to let mortgage is a product supplied specifically where people wish to purchase a property and let it rather than live in it as they would if the purchasing the property for a family home.

• Cash Back Mortgage

Cash Back mortgages pay a lump sum up front, by the lender to the borrower which is added to the balance of the mortgage.

• Capped Rate Mortgage

The interest charged on a capped rate mortgage will go up and down as it would with a variable rate mortgage but will be guaranteed not to rise above a specific rate (capped rate) for a particular period of time.

• Current Account Mortgage

With a current account mortgage you keep all your finances as one account with the same account used for your mortgage as is for other financial transactions. Interest is only charged on the outstanding balance of the loan and therefore interest payments may be reduced.

• Discount Rate Mortgage

A discount rate mortgage is a variable rate mortgage that is discounted from the Bank of England’s base rate by a set percentage within a ser period. This type of mortgage usually carries early repayment charges.

• Fees Free Mortgage

A fees free mortgage is a mortgage where the lender does not charge an arrangement fee for setting up the loan.

• First Time Buyer Mortgage

A first time buyer mortgage is simple a mortgage for first time property buyer.

• Fixed Rate Mortgage

A fixed rate mortgage has a fixed interest rate within a set period of time. Fixed rate mortgages will often carry early repayment charges.

• Flexible Rate Mortgage

A flexible rate mortgage differs from a standard rate mortgage in that you are able to make overpayments, take payment holidays and draw down further advances without incurring redemption charges.

• Guaranteed Mortgage

A guaranteed mortgage is a mortgage which is guaranteed against default by a third party.

• Interest Only Mortgage

An interest only mortgage is a mortgage where only the interest on the original loan (capital) is charged while the amount borrowed remains the same. An interest only mortgage usually requires an investment vehicle to pay off the amount borrowed at the end of the term.

• Offset Mortgage

This is a Flexible mortgage, which allows a borrower to keep balances (such as mortgage debt, savings account and current account) in separate accounts, but, for the purposes of interest calculation, all balances are aggregated. Money in savings or current accounts is set against the mortgage balance and interest is only charged on the outstanding amount, meaning interest payments are reduced.

• Poor Credit Mortgage

A poor credit mortgage is a mortgage which may be available to people with poor credit histories.

• Prime Mortgage

A prime remortgage is a mortgage product available to people with good credit.

• Remortgage

A remortgage is technically where a person changes their mortgage to a totally different lender but may also be used to describe situations where the person takes further advances on their current mortgage, or changes from one mortgage product to another provided by their current lender. Most of the mortgage types on this page could result when a property is remortgaged.

• Self-Certification Mortgage

This is a mortgage where the borrower states their own income and signs confirmation of their ability to repay the loan without having to provide full evidence of the ability to do so with for example accounts, pay slips or bank statements. Rates for these types of mortgages are often higher.

• Standard Variable Rate Mortgage

A standard variable rate mortgage charges a rate of interest determined at the lender’s discretion. Most mortgages will become standard variable rate mortgages at the end of any special offer such as a capped, discounted or fixed rate deal.

• Tracker Mortgage

A base rate tracker mortgage or tracker mortgage is a mortgage with an interest rate that tracks at a certain level above the Bank of England base lending rate. For example you may find a mortgage product with an interest rate set at base rate plus of 0.25 per cent of the base rate for two years.

• Sub Prime Mortgage

A sub prime mortgage is a mortgage which may be available to people with poor credit histories.