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The most common type of mortgage you are likely to be aware of, a fixed rate mortgage has a fixed interest rate that will stay the same for a set amount of time. The main advantage of this is that you are protected from volatility in the market and from rises in interest rates. Fixed terms typically come in two, three or five years, though some are available up to ten years.

A fixed mortgage is great for giving you peace of mind, your repayments will stay stable for years no matter the fluctuations in the interest rate. Budgeting for each payment remains consistent and easy to deal with though if rates fall, you won’t be able to take advantage and there may be early repayment charges if you need to end your mortgage before the term is up.

These mortgages feature a variable interest rate, but are not variable mortgages. Don’t worry, we’ll explain! A tracker mortgage uses the Bank of England’s base interest rate and then through the changes in this, your repayments change depending on this rate. The Bank of England’s rate is the rate that high street banks use when borrowing money and is decided on the first Thursday of each month.

The basic difference between tracker and variable rate mortgages is that the variable is set on the lender’s own interest rates, whereas tracker mortgages are tied to an external rate that your lender follows. The upside of this is that, in general, a tracker mortgage can work out as cheaper than the others. Obviously, any volatility in the market and the economy is going to be reflected in the interest rate and so there is an element of uncertainty involved. Tracker mortgages are usually available for two, three, five or ten years.

A variable rate mortgage is usually an option you’ll be presented with after the term on your fixed rate mortgage ends. Although a risky option, these mortgages are a double-edged sword, prey to the whims of your lenders interest rates. The major upside is that if the interest rates decrease so too will your mortgage payments, on the flipside, if the interest increases then your payments will go up.

Obviously, unpredictability is the main problem. Unlike a tracker mortgage, a variable mortgage doesn’t have to strictly follow the interest rate set by the Bank of England. If you choose, you can go straight on to a variable mortgage rather than a fixed rate one, though we wouldn’t recommend this as a first option. The flexibility of a variable rate mortgage does give you the ability to switch to another deal or provider with no restrictions whatsoever. Budgeting with a variable mortgage can also prove to be a challenge but it isn’t an option you should disregard outright, with careful planning, the freedom of a variable mortgage is advantageous.

The payments on this type of mortgage only cover the interest charges, and don’t touch the amount of the original loan. What’s great about an interest only mortgage is that your monthly payments will be much lower than on a repayment mortgage. What isn’t great about this type of mortgage is that at the end of your term, you won’t have paid off anymore of the original amount you borrowed. With an interest only mortgage, any lender worth their salt won’t even want to put you in the position to take this type of mortgage if you are unable to cover the whole sum, so it isn’t the most common type of mortgage that’ll be offered.

Even though this is a rare type of mortgage, it is mostly found in buy-to-let properties. This option is valuable for buy-to-let landlords as you have lower monthly repayments and can put aside the profits from rented accommodation and pay the full capital when the term of the mortgage ends. Because of the nature of an interest only deal it is viewed as particularly high-risk by lenders, and there is also the danger that any disruption to your cash flow may leave you unable to pay the entire amount at the end of the term.

If you have a large amount of savings, this option may be the best for you. The value of your savings is deducted from the complete amount of your mortgage. Because of this, your monthly repayments are lower, and the higher the amount of your savings, the less interest you’ll pay. What tends to happen with this type of mortgage is that you won’t gain any interest on your savings. Your savings are placed in an offset savings account with your provider, then that value is used to “offset” against your mortgage.

Offset mortgages are available as an option when you choose any of the other mortgage types. You can get great savings every month, and it’s also a fantastic way of helping a family member get on the property ladder.

Put simply, using a mortgage advisor vastly improves your chances of finding an affordable mortgage. A mortgage advisor is experienced in searching the entire market, not just the offers of one lender, so you are far more likely to get a more suitable mortgage for your personal needs. The Mortgage Broker has access to over 12,000 mortgage products; as a result, finding the best deal for you becomes a certainty.

If you are self-employed, a contractor, or have complex financial issues, you’ll find it harder to get a mortgage from well-known high street lenders. We know that finding a mortgage broker for self-employed people is a pain. Our mortgage advisors work with specialist lenders that offer deals not available on the high street and will deal with every case with a depth of knowledge and understanding you won’t find by going straight to the lender.

Using a mortgage advisor removes the stress from the process of researching and applying for a mortgage. We make sure we’re with you every step of the way, not just through the application process but after submission to help support you with all the legal requirements, ensuring completion occurs without a hitch.

Being a completely independent mortgage broker, our mortgage advisors have no bias toward one particular lender over another. We pride ourselves on listening to your needs first, and finding mortgage deals unique to your personal circumstances and specific financial needs.

Duty bound to be regulated, mortgage advisors give you advice that you can trust. They work tirelessly to provide advice that is compliant that you can be sure is from a qualified professional.

The mortgage regulator wants to ensure that you, the customer, is treated fairly when using a mortgage advisor. To that end, consumer duty has been introduced across the financial services industry. What this means to you is that you know you’ll receive the correct service and support from your mortgage advisor, no matter your personal, professional and financial circumstances.

Not only will our mortgage advisors find the best deal for you, if you decide, they can also support you with insurance and protection advice. This is vital to securing your financial future and safeguarding your home. Getting home insurance is a requirement of mortgage lenders and this can easily be arranged through your mortgage advisor.