Our guide to the wide range of mortgages on offer to homeowners

Mortgages Explained – Our guide to the wide range of mortgages on offer to homeowners

We understand that everyone has different requirements and so make it our business to find the right mortgage product for you. Whether you’re a first-time buyer, re-mortgaging or considering shared ownership, our dedicated advisers are there every step of the way.

While the prospect of getting a mortgage can be exciting, navigating the market can be overwhelming, so it’s crucial to understand what type of mortgage will suit you. With a range of mortgages available, we’ve put together this blog post to explain some of the most common mortgage types on offer to homeowners in Northern Ireland.

Fixed rate Mortgages

Arguably the most common mortgage type across the UK is the fixed rate mortgage, which enables homeowners to pay the exact same amount each month that their plan is in place. Regardless of what happens with interest rates, with a fixed rate mortgage your payments will remain ‘fixed’ for the entire length of your plan.

Many homeowners favour fixed rate mortgages as they ensure payments won’t move up and down and you will know exactly what you pay each month, which helps with budgeting.

Variable Rate Mortgages

This mortgage type falls into three main categories, tracker, standard variable and discounted rate. A variable rate mortgage allows fluctuation on the level of interest that you pay per month. This mortgage type can and will usually move up and down, depending on changes to the UK economy. This means one month you may pay less and the next you may pay slightly more on your mortgage repayment, depending on the UK’s standard base rate of interest.

To find out more about the different types of variable rate mortgages mentioned above, contact one of our advisers.

Flexible Mortgages

A flexible mortgage offers homeowners more freedom to manage their mortgage in a way that might suit their financial situation best that month. The flexibility you get with this mortgage type will vary, but usually you would have the ability to change your monthly repayment amount, repay early, take back cash you have put in or postpone payments.

Although they have many advantages, flexible mortgages can also be difficult to manage as they make budgeting more difficult as the interest rate can and will vary throughout the month and can often result in extending the repayment period due to too many underpayments. This style of mortgage will require a well disciplined approach.

Offset Mortgages

Offset mortgages are generally considered by homeowners who have generous savings pots. An offset mortgage is a home loan where savings held in a linked bank account are subtracted from the amount of mortgage that you pay interest on, meaning you can either pay less each month or pay off your mortgage quicker.

It’s important to remember that an offset mortgage reduces the amount of your mortgage that you need to pay interest on, but not the loan itself – this will still need to be repaid in full.

For example, if you have £10,000 in a savings account that’s linked to an offset mortgage of £200,000, you would only pay interest on £190,000.

Government Backed Scheme

The Government design various schemes which help buyers secure their first home or mortgage such as Co-Ownership or Help-to-Buy. Most recently, the UK Government has launched the 95% Mortgage Scheme, which will allow first time buyers or current homeowners to secure a mortgage with just a 5% deposit.

Our advisers make sure to always have their ears to the ground and will be there to advise you on any Government schemes available to you when you most need them.

If you’re ready to start your mortgage journey, read through our mortgage advice guide and contact one of our advisers today.

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

Scroll to Top