There are three main types of mortgages available to you. The first is the standard variable, second is the tracker and third is fixed rate. Many lenders now also offer an ofset mortgage as well.

Standard Variable
This is very much the basic mortgage which is based on the current base rate. They are often the most flexible and have no tie in period. Not many people choose this mortgage as it usually has the highest interest rate. They can be useful when you dont want to commit to a fixed term mortgage.

Tracker
The tracker mortgage offers an interest rate fixed at a certain percentage above or below the current base rate. Again these usually have no tie in period but are fixed for a certain amount of time before changing to the same rate as the standard variable.

Fixed Rate
A fixed rate mortgage is exactly as it sounds in that you are given a fixed rate for a certain period of time. With this type of mortgage you are usually tied in for the length of the fixed rate period. This means you have to pay a penalty if you want to pay the mortgage off. These are more popular when interest rates are fluctuating and you don’t want to be hit by higher payments if the base rate increases.