Understand the main types of mortgages in the UK and how to choose the right one for your needs and budget.
Mortgages aren’t one-size-fits-all. Choosing the right mortgage can save you thousands over the lifetime of your loan. Here are the most common types:
1. Fixed-rate mortgage: Your interest rate stays the same for a set period (usually 2–5 years), providing certainty with monthly payments.
2. Tracker mortgage: Your rate follows the Bank of England base rate. If rates fall, your payments may drop—but they can also rise.
3. Discount mortgage: Offers a temporary discount on the lender’s standard variable rate. Good for short-term savings, but rates may fluctuate.
4. Offset mortgage: Links your mortgage to your savings account. You pay interest on the difference, which can lower your monthly payments.
Before you apply:
- Check your credit score
- Get a mortgage agreement in principle
- Speak to a broker to compare offers
Getting advice tailored to your financial situation can help you choose with confidence.