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There are a wide range of mortgages available in the market, each one offering different lengths of contract, interest rates and repayment figures. It is essential to choose a mortgage plan that you can afford without too much financial strain on your everyday life.

Some of the main types available are:

Variable mortgages: Each lender sets their own Standard Variable Rate so they can vary considerably. Generally this means that if the Bank of England puts the interest rate up or down, your SVR will almost certainly follow, though not necessarily simultaneously.

Discounted variable mortgage: This type of mortgage sets the rate you pay below the lender's SVR for a set period, for example two years or three years. If your discount is two per cent, when the SVR is seven per cent then your mortgage rate will be five per cent. If the SVR rises by one percent, your rate also rises by one percent. At the end of the discounted term, repayments go back to the SVR.

Tracker mortgage: This mortgage follows the interest base rate as set by the Bank of England.

Fixed rate mortgage:  A way of guaranteeing your payments for a set number of years.

What is important is to pick a mortgage package that allows you to stay in full control. We would recommend that you speak with one of our preferred expert advisors to discuss your financial needs and the type of mortgage that suits your situation.

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