Different Types of Mortgages in UK
A guide to 15 different types of mortgages on offer in the UK. From SVR mortgages to more unconventional mortgages such as Current account and self certification mortgages
Different Types of Mortgages in UK
1. Standard Variable Mortgage
The most common type of mortgage. Mortgage payments depend on the lenders SVR. This is usually influenced by the Bank of England Base Rate.
2. Fixed Rate Mortgage
A mortgage with a period of 2-4 years where the interest rate on mortgage payments is fixed. There may be a slight premium for security, but it avoids interest payments becoming un affordable.
3. Capped Mortgage
This is like a fixed rate mortgage. It states a maximum interest rate but it can fall under some circumstances.
4. Self Certification Mortgage
A mortgage where there is not any need to prove your income through published accounts. Often taken by self employed.
5. Repayment Mortgage
A mortgage where you pay both, interest on the loan and capital repayments. Most mortgages are repayment mortgages. It means at the end of your mortgage term you will have paid off your mortgage debt.
- See also Remortgage Quotes
- See Unconventional Mortgages at Mortgage Guide UK
