Buying a home is one of the biggest financial commitments a person will ever make. From making sure it's the perfect home for everyone in the family, it's good value for money and you have the right mortgage that works for you. Picking the right mortgage for you can be a struggle, especially with property prices fluctuating and mortgage rates increasing.
To help you out, we've broken down the six types of mortgages you can get and picked out their pros and cons with help from experts at Barratt Homes. Sharing why it's important to make sure you have the right mortgage, Adrian MacDiarmid, Head of Mortgages at Barratt Developments, said: “Choosing the right type of mortgage is important, as it can help save you a lot of money. "While a fixed-rate mortgage is the most popular option overall, there are a lot of new products available now tailored to specific buyers.
What are the different types of mortgages? Fixed-rate mortgage A fixed-rate mortgage means your repayments will be the same for a set period, typically two to five or sometimes even ten years. This gives you the certainty of knowing what your repayments will be regardless of market interest rates. Pros of a fixed-rate mortgage Peace of mind that your monthly payments will stay the same Ideal for those on a tight budget looking for stability Cons of a fixed-rate mortgage If interest rates drop, you won’t benefit from lower repayments Choosing to switch from certain long-term fixed-rate mortgages early can lead to s.