Interest Only Mortgages allow the borrower to pay only the interest on the Mortgage leaving the balance loan amount unchanged for a period of anywhere between 1year and the duration of the loan. Within this time frame you can pay off chunks of capital to reduce the monthly interest payments. Mortgages lenders may require your confirmation that you have a plan in place to pay back the capital on its due date.These can vary from endowement policies to ISA saving vehicles.

The Capped Rate Mortgage is where the interest rate that the lender charges has an upper limit. This means that the Capped Rate Mortgage lender will only charge you to an agreed maximum Mortgage rate. The Capped Rate Mortgage is a perfect mix or in other words the best of both of Variable Mortgage Rate and Fixed Mortgage Rate, as it offers you similar rates as a Variable Rate Mortgage and some of the security of a Fixed Rate Mortgage.

Fixed Rate Mortgages are Mortgages which have a pre-determind Fixed Rate of interest; this does not vary with the Bank Of Englands movement. This allows you to plan and budget monthly payments. Fixed rate mortgages have become very popular as competition has developed numerous products.

A Variable Rate Mortgage is a Mortgage which will be affected by the change of the Bank of England's Base Rate. The rise and fall of interest's rates are generated when the bank of England sets the rates which is done monthly at the Bank Of England Monthly Monetry Meeting. Recent studies have shown that 1 in 5 people are currently on a Variable Rate Mortgage.

A Self-cert mortgage caters for the 3.2 million individuals (potential Self Cert Mortgage buyers) in the UK who are deemed to be either self employed or those that can't validate their income. A Self-cert Mortgage is a type of Mortgage where you personally confirm your income without the need for any independent verification, with your Mortgage application.