• Standard Variable Rate Mortgage

  • Interest Rate: Changes with the market.

  • Features: Flexible repayments and extra payments allowed.

  • Pros: Potentially lower rates if market rates drop.

  • Cons: Rates can increase, making repayments higher.

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• Fixed Rate Mortgage

  • Interest Rate: Stays the same for a set period (e.g., 1-5 years).

  • Features: Predictable repayments.

  • Pros: Stable payments; no surprises if rates rise.

  • Cons: Higher rates if market rates fall; extra payments may be restricted.

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• Interest-Only Mortgage

  • Interest Rate: Can be fixed or variable.

  • Features: Pay only interest for a set time.

  • Pros: Lower initial repayments.

  • Cons: Loan balance doesn’t decrease; higher repayments later.

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• Principal and Interest Mortgage

  • Interest Rate: Can be fixed or variable.

  • Features: Pay both interest and principal each month.

  • Pros: Loan balance decreases over time; builds equity.

  • Cons: Higher repayments compared to interest-only loans.

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• Split Loan Mortgage

  • Interest Rate: Combination of fixed and variable rates.

  • Features: Part of the loan is fixed, part is variable.

  • Pros: Balance between stability and flexibility.

  • Cons: More complex; may have higher fees.

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• Home Loan with Offset Account

  • Interest Rate: Can be fixed or variable.

  • Features: Savings in an offset account reduce interest on the loan.

  • Pros: Save on interest costs if you keep a high balance in the account.

  • Cons: Might come with higher fees.

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• Low Doc Mortgage

  • Interest Rate: Often higher.

  • Features: Less documentation required, good for self-employed people.

  • Pros: Easier application process.

  • Cons: Higher interest rates and larger deposit needed.​​