Mortgage types at a glance
| Choice | Main options | What you’re deciding |
|---|---|---|
| Repayment method | Repayment or interest only | How the mortgage balance will be repaid |
| Interest rate | Fixed, tracker or another variable rate | Whether your rate stays the same or changes |
| Deal length | Shorter or longer initial deal | How long you want the rate and restrictions to last |
| Mortgage features | Overpayments, portability, offsetting or incentives | How much flexibility you need |
| Purpose | Buying, moving, remortgaging or buy to let | Which lender criteria and products apply |
The combination for you depends on your circumstances. A mortgage broker brings these decisions together rather than looking at each feature in isolation.
Repayment mortgage or interest only mortgage?
This is the first decision that you’ll need to make when selecting a mortgage.
Repayment mortgage
With a repayment mortgage, your monthly payment covers interest and repays part of the amount borrowed.
Provided you make every required payment, the mortgage balance is repaid by the end of the term.
A repayment mortgage is the standard route for most residential buyers because it gives you a clear plan for repaying the debt.
Interest only mortgage
With an interest only mortgage, your monthly payment covers the interest charged on the loan. The original capital balance remains outstanding.
You need an acceptable repayment plan to repay the capital at the end of the mortgage term.
Lenders apply specific criteria to interest only applications, including the repayment strategy, income, equity and loan to value.
An interest only mortgage is not automatically the cheaper option. The monthly payment is lower because you are not repaying the capital, but the debt remains.
A mortgage broker can explain whether interest only is available for your circumstances and whether the repayment strategy meets lender requirements.
A MORTGAGE IS A LOAN SECURED AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE OR ANY OTHER DEBT SECURED ON IT.
There may be a fee for mortgage advice. The actual amount you pay will depend upon your circumstances. The fee is up to 1% but a typical fee is 0.3% of the amount borrowed.
Fixed rate or variable rate?
Once you understand how the capital will be repaid, you need to choose how the interest rate works.
Fixed rate mortgage
With a fixed rate mortgage, the interest rate stays the same for an agreed period.
This gives you predictable monthly payments and protection from wider rate increases during the fixed period.
Fixed deals often include early repayment charges, so the deal length needs to fit your future plans.
A fixed rate suits you when payment certainty is a priority and your budget benefits from knowing the exact monthly cost.
Tracker mortgage
A tracker mortgage is a variable rate mortgage that follows an external rate, often the Bank of England base rate, plus a lender margin.
Your payment rises when the tracked rate rises and falls when it falls.
Tracker mortgages suit you when you accept changing payments and have enough room in your budget to manage an increase.
Some tracker deals offer greater flexibility, but the terms, fees and early repayment charges still need checking.
Discounted variable rate
A discounted mortgage gives you a reduction from the lender’s Standard Variable Rate for an agreed period.
The rate changes when the lender changes its Standard Variable Rate.
The size of the discount does not tell you whether the deal is competitive. You need to compare the actual payable rate, fees and lender terms.
Standard Variable Rate
The Standard Variable Rate is set by the lender and can change.
You often move onto this rate when an introductory mortgage deal ends unless you arrange a new product.
It usually offers flexibility, but it does not automatically provide the lowest overall cost.
What is an offset mortgage?
An offset mortgage links your mortgage to an eligible savings account.
Instead of earning interest on the linked savings, the savings balance reduces the amount of mortgage borrowing on which interest is charged.
For example, if your mortgage balance is £200,000 and you hold £20,000 in the linked savings account, interest is calculated on £180,000.
An offset mortgage works well when you hold significant savings and want to retain access to them.
It is not automatically the best option for every saver. We compare the mortgage rate, fees, tax position, savings balance and alternative products before recommending it.
How long should you fix your mortgage for?
A shorter fixed period gives you another opportunity to review your mortgage sooner. A longer fixed period gives you payment certainty for longer.
The term for you depends on your plans.
Tell your broker if you expect to:
- Move home
- Change jobs
- Reduce your working hours
- Start a family
- Receive a lump sum
- Make large overpayments
- Sell the property
- Change the purpose of the property
A long fixed rate can look reassuring but become restrictive when your plans change. A shorter deal gives you an earlier review point but exposes you to the mortgage market sooner.
At Your Mortgage Expert, we compare different deal lengths and show you the monthly payment, fees and early repayment charges attached to each option.
Does your situation affect the mortgage type available?
Lenders assess your circumstances and will look at both you and the property.
Your options depend on factors including:
- Your income and employment
- Your deposit or property equity
- Your credit history
- Your existing commitments
- The property type
- Whether you are buying or remortgaging
- Whether the property will be your home or rented out
- How long you want the mortgage to run
Different criteria apply to first time buyers, home movers, landlords, self employed applicants, company directors and customers with complex income.
This is where a mortgage broker adds value. We check lender criteria before applying and focus on mortgages that fit your circumstances.
Why use a mortgage broker to choose your mortgage?
A bank only discusses its own mortgage range. A comparison table shows rates but does not establish whether you meet the lender’s criteria or whether the product fits your plans.
A mortgage broker like Your Mortgage Expert, will:
- Review your income, deposit, commitments and future plans
- Establish how much you can realistically borrow
- Compare suitable mortgages from a choice of lenders
- Explain repayment and interest only options
- Compare fixed, tracker and other variable rates
- Calculate monthly payments under different scenarios
- Compare fees, incentives and total cost
- Check early repayment charges and overpayment limits
- Review lender criteria before submitting an application
- Explain why the recommended mortgage fits your position
- Prepare and manage the application
- Liaise with the lender through to completion
This saves you from applying for the wrong product, paying unnecessary fees or choosing a mortgage that restricts your future plans.
Choose a mortgage with confidence
The mortgage for you is the one that fits your circumstances, not simply the one with the most attractive headline rate.
Tell us about your income, deposit or equity, property and future plans. We’ll compare suitable options, explain the costs and restrictions and recommend a mortgage that supports what you want to achieve.
We help first time buyers, home movers and remortgage customers throughout the UK by phone and video call, with face to face appointments also available near Salisbury.
Last reviewed: June 2026
This article provides general information and does not constitute personalised mortgage advice. Mortgage availability, criteria, rates and fees depend on your circumstances and the products available when you apply.