Repayment Mortgage

This is the most popular type of mortgage and the simplest to understand. You borrow money to buy your home, then you pay it back to the lender, together with interest. So, each month you’re paying back a bit of the money you borrowed and a bit of interest.

At first, you’ll be paying mostly interest each month, so the balance of the money you owe won’t go down by very much. But as time goes by, you’ll start to see the balance going down too. When you get to the end of the mortgage, assuming you don’t miss any monthly payments, you’ll have paid back everything you owe your lender and you’ll own your home outright.

Tracker Mortgage

With a tracker mortgage, your interest rate follows (or tracks) another interest rate, usually the Bank of England’s base rate. This is the rate of interest that the Bank of England charges High Street banks to borrow money. If the Bank of England changes its rate, your interest rate will change too. If the base rate goes up, you’ll pay more, so you’ll need to be sure that you can still afford your mortgage if it gets more expensive. If the base rate goes down, you’ll pay less.


All lenders have a standard rate of interest that they charge people who borrow money from them. Because it can change from time to time, it’s called the Standard Variable Rate, or SVR. So, as with other types of variable rate, your interest rate could go up or down. Once again, if you have this type of mortgage, you need to be sure that you can still afford to make your monthly payments if the rate goes up.

Unlike a lot of other mortgage types, if you’ve got this type of mortgage there isn’t usually a charge if you want to change your mortgage deal. So, you can usually move to another deal and potentially another lender at any time. If you can afford it, you can usually also overpay your mortgage and so pay it off quicker.

However, you might find that there are other mortgage types available which meet your needs better.

Why not talk to us and let us help you find the mortgage that suits you best?