Types of Mortgages

With a fixed-rate mortgage, your interest rate stays the same for a set period — typically 2, 3, or 5 years. This provides predictable monthly payments, making it easier to budget.

✔ Predictable payments

✘ No benefit if rates fall

These offer a discount on your lender’s SVR for a set period (usually 2–5 years). They can offer savings early on but are variable, so rates may change.

✔ Lower starting payments

✘ Payments may increase unexpectedly

Once your introductory deal ends, your lender may move you onto their SVR. This rate can change at any time and is often higher than other options.

✔ No early exit fees

✘ Usually more expensive

These offer a discount on your lender’s SVR for a set period (usually 2–5 years). They can offer savings early on but are variable, so rates may change.

✔ Lower starting payments

✘ Payments may increase unexpectedly

An offset mortgage links your mortgage with a savings account. Instead of earning interest on your savings, the balance is offset against your mortgage, reducing interest owed.

✔ Can save significant interest

✘ Most effective with high savings balance

With an interest-only mortgage, you only pay interest each month. You’ll need a repayment plan to pay back the original loan at the end of the term.

✔ Lower monthly payments

✘ Requires solid repayment strategy

A capped mortgage has a variable interest rate, but with a cap on how high it can go. You benefit from lower payments if rates drop, with protection if they rise.

✔ Combines flexibility with security

✘ Rates typically start higher than trackers

These allow overpayments, underpayments, or even payment holidays. Ideal for those with irregular income or looking to pay off their mortgage faster.

✔ Control over repayments

✘ Often carry higher rates

This scheme allows you to buy a portion of a home (usually between 25% and 75%) and pay rent on the rest. It’s often used by first-time buyers or those with lower deposits.

✔ Lower upfront costs

✘ You don’t fully own the property