Types of Mortgages Provided
At Cotswold Independent Financial Services, we are independent mortgage advisers and as such we supply a variety of different mortgages. Here is an overview of some of the types of mortgages we find for our clients.
Lifetime Mortgages – this is when you borrow money secured against your home, provided it's your main residence and still own it. When circumstances change e.g. you move into long-term care or die the home is sold and the money from the sale is used to pay off the loan and the remaining money goes to your beneficiaries.
Fixed Rate Mortgages – the interest rate is set for a specific period of time (could be between one and 10 years). The benefit of this type of mortgage is that you can plan based on knowing that your mortgage rate is fixed and guaranteed.
Variable Rate Mortgages – the mortgage rate can and will move up and down roughly to follow the Bank of England's base rate movements. These mortgages can vary massively between lenders which is where our experience as independent mortgage advisers mean we can look at the most suitable lender in the market place.
Capped Rate Mortgages – this is a capped deal with an upper limit – so the rate has a guaranteed ceiling it can't exceed no matter what the tracked rate rises to. These tend to be popular when people are most concerned about interest rates soaring.
Tracker Mortgages - this is a type of variable rate mortgage which tracks movements of another rate, which is usually the base rate, which is the Bank of England's official borrowing rate, and moves in line with it.
Discount Mortgages is also known as a discounted variable rate, has an interest rate that is set a certain amount below the lender's standard variable rate (SVR). It goes up and down when the SVR moves. They tend to last for a relatively short period – typically two or three years although they can last longer.
Read more about our mortgage service.