Choose your repayment type - repayment, interest- only, or a combination of both. Our offset variable mortgage rate 6. Online banking demo our tracker rate mortgages. Once a popular method of repaying an interest- only mortgage, but now out of favour. Our discounted rate mortgages give you a discount off our offset variable mortgage rate for a set period.

Our offset variable mortgage rate 6. Which type of interest rate is suitable for you? If you are applying for a mortgage over £1, 000, 000 what does it mean?

After five years, you might only have paid off a measly 2% of your mortgage. Equity: the total value of your property less the amount of the mortgage. Your home may be repossessed if you do not keep up repayments on your mortgage. Loan sharks.

The total interest you're paid on your savings and current account balances, showing the total it would amount to if it was paid and compounded annually. Our offset variable mortgage rate 6. Portable - you can carry forward the special rate to a mortgage on a new property for the remainder of the special rate period. Our offset variable mortgage rate 6. For example, if your house is worth £110, 000 and you have a mortgage of £60, 000, you have £50, 000 equity.

A type of mortgage where your regular mortgage payment is split between paying interest and repaying the money you borrowed. Our offset variable mortgage rate 6. Interest calculated on the basis of daily balances. You can choose a combination mortgage. For someone with an interest- only mortgage, however, this still means monthly outgoings could jump the full 26%. Property value £ mortgage amount. Capital: the amount you have borrowed on your mortgage and on which interest is charged.

But with low rates, there’s a much lower compounding effect, so much heavier repayment contributions need to be made. Lenders will check with a credit reference agency to see if someone applying for a mortgage has any known credit problems. For your own personal requirements please speak to a qualified mortgage advisor. Their property may then be worth less than their mortgage, leaving them with what could be a very substantial shortfall.