Product Library: Overview

Choosing which type of mortgage, never mind which company, can be difficult. In this section you will find a quick guide to the different features of a range of different mortgages, as well as an understanding of other important issues regarding mortgages.

A mortgage is essentially a loan secured on your home. All loans attract interest, and it is the Bank of England who set the UK’s overall interest rate, known as the Bank of England base rate, the BofE base rate. However, this is not always the rate you will pay.

Most mortgages lenders link their mortgage products in some way to the Bank of England Base rate. They usually have their own Standard Variable Rate (SVR) which either tracks the ups and downs of the BofE base rate exactly, or follows it approximately. The important issue is that unless you have a fixed rate mortgage, the amount of your monthly mortgage payment is likely to change when the BofE base rate changes.

Additional Features

There are an increasing number of adverts for mortgages which offer flexibility. While these can be suitable, it is important to understand that these features are often standard on many mortgages.

For example, it is common to be able to overpay your mortgage by upto 10% in any one year. It is usually possible to take a payment holiday, especially if you have overpaid your mortgage. Most modern mortgages are also portable, should you move home, and most mortgage companies also entertain the idea of extending either the amount borrowed, or the length of time it was borrowed for.

Please note your home may be repossessed if you do not keep up repayments on your mortgage.

If you would like any further information, or have any questions, please use the 'contact us' feature, or call on 0800 169 2827.