Here's a summary of the types of mortgage available through Fuel
Fixed rate
| Summary |
Good because... |
But... |
| your mortgage rate is fixed for a period of time, normally 2, 3 or 5 years |
no matter what happens to the Bank of England's base rate your monthly repayments won't change in that period |
remember there may be early repayment charges |
Tracker
| Summary |
Good because... |
But... |
| your mortgage rate is linked by a set amount to the Bank of England's base rate |
you'll benefit from a reduction on the SVR and any falls in the base rate |
your payments will go up if the base rate rises and there may be early repayment charges |
Discount rate
| Summary |
Good because... |
But... |
| the lender's SVR will be discounted by a certain amount for a set period of time |
your payments will be lower than the SVR and will fall with any mortgage rate cuts |
your payments will go up if the SVR rises and there may be early repayment charges |
Offset and Current Account
| Summary |
Good because... |
But... |
| your mortgage account is linked to your other bank accounts |
if you have current or savings accounts with healthy balances, you could reduce the amount of interest you pay, easy to withdraw cash also |
you won't receive any interest on your accounts in credit and payments will follow the SVR |
Variable rate
| Summary |
Good because... |
But... |
| you pay your lender's standard variable rate for the term of your mortgage |
you'll benefit from any SVR cuts and there are rarely any set-up fees or penalties for early repayment |
your payments will go up if the SVR rises |
Flexible rate
| Summary |
Good because... |
But... |
| varies from product to products but features may include overpayments, payment holidays, withdrawals often combined with the benefits of discount, fixed and tracker mortgages |
flexibility like offset/current account but with more structured repayments |
depending on your choices, you could pay more and there may be early repayment charges |
