Mortgage Advice - Self-Build

Fixed rate mortgages will not change for a set amount of time. Should interest rates drop below the fixed rate during the fixed term, you will continue to pay the higher monthly payments. The advantage of this type of mortgage is that you will not be caught out by unexpected interest rate rises.

Discounted variable rate mortgages give you a discount on the lender's standard variable rate for a set amount of time. After the fixed period they will return to the standard variable rate. This type of mortgage enables you to reduce your monthly mortgage commitments for the first few years.

Tracker mortgages are also known as a base rate tracker. The rate tracks the Bank of England base rate and when the base rate changes, so does the amount that you pay.

Capped mortgages guarantee that your payments will never go above a set figure within a certain period of time, however, should interest rates fall you can take advantage of this. This type of mortgage guarantees that your payments will never go above a certain figure during a fixed time scale.

Self Certification is a good option if you are self-employed and will thus have difficulty in proving your income. This option will, however, limit the number of lenders and products available to you.

Variable mortgages are the lenders standard product where the rate usually moves in line with the Bank of England's base rate, it can however change at other times.

End of Discount or Fixed Period At the end of a discounted or fixed period, the interest rate will revert to the current variable rate. There are sometimes financial penalties for moving away from your lender within a certain time after the end of the fixed period.