01908 597655Once you begin looking for a mortgage, you’ll come to realise that there are many different types of mortgages out there on the market. It can quickly become confusing. However, there are essentially two main types of mortgages: fixed-rate and variable-rate mortgages.
In this guide, we are going to explain how each of these mortgage types work. We will also cover other common types of mortgage and some specialist mortgages that you may come across.
When you move house, you may have the option of taking your current mortgage deal with you to your new property, known as mortgage porting. If you choose not to take up this option, or it isn’t available to you, then you will need to repay your existing mortgage deal from the sale proceeds of your house and take out a new mortgage to help you buy your next property. You can do this with either your existing lender or with a new one.
It’s important to note that mortgage porting only applies where you currently have some sort of special mortgage deal. This could be a fixed interest, tracker or discounted rate facility with your existing lender. It does not apply where you have a standard variable rate facility.