Buy to let
Capital and interest
Capped rates
Cash-back
Discount rate
Fixed rate
Flexible
Interest only
Self-Certification
Standard Variable
Tracker
100% mortgage

Buy to let mortgages are for properties purchased for investment purposes. Lenders will usually take into account the predicted rental income of the property as well as the income and status of the borrower. It is a usual requirement that the expected rental income must exceed the monthly mortgage payments by a certain percentage.




Otherwise known as a repayment loan, the borrower pays an amount each month to cover the amount borrowed and the interest charged. This type of mortgage guarantees that the loan will be paid off in full at the end of the agreed term.




A type of mortgage which means that the mortgage interest rate will not exceed a specified value during a certain, specified period of time, but can fluctuate up and down below that level. Once the period of capped interest expires, the mortgage will normally revert to a standard variable rate.




A type of mortgage where the lender will offer a lump sum of cash at the start of your mortgage. Often this will take the form of a sum of money towards the cost of legal fees or survey charges. In return, you take the mortgage lender’s standard variable rate mortgage




A type of mortgage where the interest rate is lower than the current standard variable rate for a fixed period. This is usually shown as a fixed percentage reduction against the standard rate. Sometimes lenders can attach redemption penalties to dissuade people from remortgaging once the discounted period expires.

Discount mortgages are best suited to people who prioritise low initial payments and is therefore popular among first-time buyers who need some spare money to furnish their new home.




A type of mortgage where the repayments are based on a certain interest rate for a stated period and the amount payable will not change regardless of any changes (up or down) in the lenders standard variable rate Once the fixed time period expires, the mortgage repayments switch to the mortgage lenders standard variable rate.

This mortgage is ideal for those who are attracted by the certainty and reassurance of knowing exactly what their monthly outgoings will be.




A type of mortgage growing in popularity where the borrower can make overpayments in order to repay the mortgage ahead of schedule or take payment holidays as their circumstances dictate






A type of mortgage where you simply pay the lender the minimum amount to cover the interest on your loan and invest enough each month in an investment vehicle to build up a large enough fund to pay off the capital element of the mortgage when it comes due at the end of the agreed term.




A type of mortgage where you declare what you earn. These products are designed for people whose income is difficult to assess using the standard methods adopted by the high street lenders.

Self-Certification mortgages are usually only available to people who have 25% of the value of the property available as a deposit.





A standard variable mortgage is based on the lender’s basic mortgage rate, commonly known as the Standard Variable Mortgage Rate or SVR. Fixed-rate and discount loans usually switch to SVR when the special offer period expires.

The interest rate with this type of mortgage will rise and fall in response to changes in the Bank of England base rate.




A type of mortgage that links your interest rate to the Bank of England base rate. Typically the tracker mortgage rate will be set as a percentage above the base rate which is usually lower than the mortgage lenders standard variable rate. The main advantage of this product is that the difference between the tracker rate and the base rate is usually a lot smaller than the margin between the standard variable rate and the base rate so you will end up paying less overall.

In addition, if the bank rate falls, the interest payments on your mortgage will fall by the same margin – regardless of how low the base rate goes. However the base rate can rise as well as fall which means your payments could increase as well.




Type of mortgage where no deposit is required from the borrower towards the price of the property. Rarely available at present, a 100% mortgage used to be very popular among first-time buyers who wanted to get onto the property ladder but didn't have a deposit available.