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The different types of mortgages

There are several types of mortgages available, depending on your needs and financial situation. Here are some of the most common types:

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Fixed-rate mortgage:

A fixed-rate mortgage is a type of mortgage where the interest rate is fixed for a set period, usually two, three, or five years. This means that the monthly repayments remain the same for the duration of the fixed period, making budgeting easier.

Tracker mortgage:

A tracker mortgage is a type of mortgage where the interest rate tracks the Bank of England base rate or another interest rate, usually for a set period. This means that the monthly repayments can go up or down depending on changes to the interest rate.

Discounted rate mortgage:

A discounted rate mortgage is a type of mortgage where the interest rate is set at a discount to the lender's standard variable rate (SVR) for a set period. This means that the monthly repayments are lower than the SVR, but can go up or down if the SVR changes.

Variable rate mortgage:

A variable rate mortgage is a type of mortgage where the interest rate can go up or down at any time, depending on changes to the lender's SVR or the wider market. This means that the monthly repayments can go up or down.

It's important to note that the availability and terms of these mortgages can vary depending on the lender and your financial situation. You should compare different mortgage deals and seek our professional advice before making a decision.

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