We aim to make our website as accessible as possible. However if you use a screen reader and require debt advice you may find it easier to phone us instead. Our phone number is 0 8 0 0 1 3 8 1 1 1 1. Freephone (including all mobiles).
StepChange Debt Charity logo

Free advice on problem debt
based on what's best for you

0800 138 1111 Freephone (including all mobiles)

Residential mortgages

A residential mortgage is a loan secured against your property to facilitate its purchase. In return for lending you the money the provider will charge interest.

The amount you can borrow is based on what you can afford to repay and they typically last for 25 years.

You can choose which type of mortgage best suits your plans and circumstances. The most common types are fixed, tracker, discount and variable rate mortgages.


StepChange Financial Solutions - advice you can trust

Advice you can trust

"I have no hesitation about recommending you to my friends and family. In fact I already have. Your help has been greatly appreciated."

Fixed rate mortgages

Fixed rates refer to the initial term to which a specific interest rate will apply. The most common fixed rate terms are 2, 3 and 5 years.  

Usually the longer your fixed term, the higher your interest rate will be as you effectively buy the additional security and peace of mind of knowing your monthly repayment won't increase.    

At the end of the fixed rate period you'll then transfer to the provider’s standard variable rate and you're free to remortgage to another mortgage product or provider.

Fixed rate mortgages often carry the highest application fees and usually apply an early repayment penalty should you wish to repay the loan during the fixed term.

Tracker mortgages

Tracker mortgages usually track the Bank of England base rate by a specified amount (e.g. base rate +1%). Changes to the base rate will most likley affect your interest rate and therefore your monthly repayment may change also.

These products tend to offer a great deal of flexibility as they usually have minimal early repayment charges and can offer extremely competitive rates of interest.

Discount rate mortgages

Discount rates usually offer a specific discount off the mortgage provider’s standard variable rate. The discount most commonly applies for 2 or 3 years but could be for any term. These tend to offer extremely competitive rates of interest.

This type of mortgage usually benefits from low application fees and early repayment penalties only tend to apply during the discount period. The main risk is linked to any change in interest rates that could affect your monthly repayment.

Variable rate mortgages

Variable rates are usually referred to as a provider’s standard variable rate (SVR). Each provider can set their own SVR and any increases or decreases do not have to be linked to a change in the Bank of England base rate.

Most variable rates tend to sit between the banks tracker and fixed rates.The main advantage of this type of interest arrangement is that you have no restrictions on overpayments and there is usually no early repayment penalty.

The primary disadvantage is that your interest rate and therefore your repayment could increase at any time and therefore the cost of your mortgage could increase.

Your home may be repossessed if you do not keep up repayments on your mortgage.

Book an appointment

0808 168 67199am to 5pm Monday to Friday

Free from all landlines and mobiles 

What our clients say

Our advisor was an absolute star. We genuinely couldn’t have bought our house without his help. StepChange is a wonderful organisation that gives real help to those who need it."

Helping you become debt free...

“I wish to thank your staff for all the great help they gave me when I was in so much debt.
They were a pillar of support to me.” (Leslie, Essex)

Foundation for Credit Counselling Wade House, Merrion Centre, Leeds, LS2 8NG trading as StepChange Debt Charity and StepChange Debt Charity Scotland. A registered charity no.1016630 and SC046263. It is a limited company registered in England and Wales (company no:2757055). Authorised and regulated by the Financial Conduct Authority.

*This is the average rating of our service on Feefo by DMP and DRO clients three months into their solution.

© StepChange Debt Charity 2016