Mortgages Explained
How they work, the main types of deals, and how a mortgage broker can help you from start to finish.
What is a mortgage, and how does it work?
A mortgage is a loan used to buy property or land. The lender charges interest on the amount you borrow, and you repay over an agreed term—typically 25 to 35 years. The loan is secured on the property until it's fully repaid.
You repay in one of two ways: repayment (each payment chips away at the capital and interest—you own the home outright at the end) or interest-only (monthly payments cover only the interest; you need a separate plan to repay the capital).
Types of mortgage deals
Once you've chosen repayment or interest-only, you'll pick a rate type.
- Fixed-rate
- Interest stays the same for a set period—usually 2 to 10 years. Predictable repayments.
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- Tracker
- Follows the Bank of England base rate plus a set margin. Moves when the base rate changes.
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- Discount
- A discount on the lender's standard variable rate (SVR) for an initial period.
- Variable rate (SVR)
- The lender's default rate after your deal ends. Can change at any time.
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- Interest-only
- Monthly payments cover only the interest. You need a plan to repay the capital at term end.
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- Offset
- Your savings balance is offset against the mortgage, reducing the interest you pay.
Browse mortgage types
Pick a category to explore the types we cover.
Select a category to explore
Don't see your situation? Speak to an adviser — we cover 27 types in total.
Ready to get started?
A mortgage broker can look at your income, outgoings and goals, then recommend the right deal and lender for your circumstances.