The types of mortgages available in the mortgage market today are diverse. Choosing between the different mortgages on offer can be confusing. How do you know which mortgage is best for you? Should you get a standard mortgage, current account or offset mortgage? At Money Workout our professional advisers are able to answer any questions you may have about the different types of mortgage available to you. Below we have listed the four most common types of mortgage available on the market today.
This is the most common mortgage type and is more frequently known by the way interest is applied to the mortgage such as Fixed Rate, Discount Rate, Tracker etc - click here for an explanation of mortgage rates.
This type of mortgage links your current and savings accounts together so that the amount owed on your mortgage is reduced by any savings you may have, when the lender works out the interest owing. As you save more in your current/savings account you pay less interest.
Similar to an offset mortgage it takes the balance of your current account off the mortgage, however rather than being separate accounts they are combined into one. The loan therefore acts as one large overdraft facility. The mortgage lender will require a minimum to be in your account each month to repay your mortgage over the agreed term.
This is a loan specifically aimed at landlords, wanting to buy a property to rent out to tenants. The amount that the buy to let landlord receives in rent may be over and above the mortgage payments and will help to offset the management and maintenance costs of the property. Please note the Financial Services Authority Do not regulate most Buy to Let mortgages.