The mortgage market can seem bewildering at first; so many options, so many lenders offering a multitude of promotions. In most cases you will have a rough idea of what you would like to borrow, and this amount will depend on your income, credit history, the property in question and your personal circumstances. There are several key mortgage types you may have come across before, some of which can be combined with each other:

Fixed Rate

The mortgage amount and interest rate are fixed at an agreed rate for a set period of time. Such mortgages usually come with early redemption penalities, but may be appropriate based on the current economic climate.

Tracker

A Tracker Mortgage will be set at a percentage above the Bank of England base rate, and rise and fall as Bank of England interest rates are adjusted. Again it depends on the economic climate and your own needs as to whether this may be your best option.

Capped Rate Mortgages

The rate you pay changes with the market, but is capped so as not to exceed an upper ceiling. With a Capped Mortgage you can benefit if rates fall, but will not pay more than the capped rate if they rise.

Variable

Variable Mortgages simply follow the lender's standard lending rate for any given time.

First Time Buyer / Incentive Mortgages

Many lenders now offer higher borrowing figures, over borrows and cash back opportunities aimed at first time buyers. These can help get you on the property ladder, but may leave you in negative equity should the market drop.

It is vital that you discuss your mortgage requirements with a qualified, Independent Financial Advisor. I-Agent UK can put you in touch with a Mortgage Broker and find the right package for you and your needs. To discuss your mortgage requirements, Click Here.