Mortgage Types Explained

How will fluctuations in interest rates impact on my mortgage? We explain the different types of mortgages in this blog and how you will be affected by the interest rate changes.

The Bank of England sets the base rate for interest rates in the UK, which is a benchmark for other lenders who use this as a guideline to set their own credit and mortgage rates. Consequently, changes in the base rate can have an impact on how much you pay each month on your mortgage.

Mortgage payments tend to be affected more by small fluctuations, rather than large ones; however, if there is a significant change that has a prolonged effect then it could result in substantial savings or costs over time. When interest rates rise, borrowers will find themselves paying more; conversely, when they are reduced, the amount needed to cover the repayment will be lessened.

It is important to remember that while many people are aware of the base rate, lenders may not necessarily pass on any changes immediately. Therefore it is important to be mindful of what your lender has done with their own interest rates and how this could potentially affect your household budget.

With the recent rise in interest rates, many people with a mortgage are likely to have been affected in some way, unless they are still on a discounted or fixed rate deal. The magnitude of the impact on your finances will depend on various factors, including the type of mortgage you have.

Standard Variable Rate (SVR) Mortgages

If you have an SVR mortgage, your lender sets the interest rate, which usually follows the Bank of England’s base rate movements. While rates may not rise as much as tracker rate mortgages, lenders will likely pass on the interest rate increase on to their customers.

When your initial mortgage deal comes to an end, your lender may automatically transfer your mortgage to their SVR. This means that your payments could increase as soon as your next payment.

Your lender should send you a letter explaining the new rate and what you can expect to pay. If you haven’t received any communication from them, it is advisable to contact them immediately.

Fixed Rate Mortgages

With this type of mortgage loan, the borrower pays a set amount each month for an agreed period of time. The interest rate remains fixed throughout the fixed-term duration of the loan and so there is no fluctuation in monthly payments or risk that you will have to pay more if interest rates rise.

This makes it easier to budget and can make your mortgage payments more manageable over a longer period of time. Fixed rate mortgages have become increasingly popular as borrowers seek to protect themselves from rising interest rates and volatile markets.

They provide a comfortable level of security, knowing that payments remain consistent by usually fixing the rate on your mortgage for between two and five years at a time. Although you may be able to get a fixed rate mortgage for between seven and ten years, too. If you need to switch lenders or refinance your loan during this period, however, then there may be additional fees involved.

Discounted Rate Mortgages

Discounted rate mortgages usually come with an initial period when the interest rate is discounted from the SVR. This initial period may last for one, two or three years or even longer, depending on the lender’s terms and conditions. After this period ends, the interest rate will revert back to the SVR unless you have taken out an extended fixed-rate deal.

During this initial period, borrowers can also benefit from any changes to either the Bank of England Base Rate or SVR, whichever is lower at any given time during your mortgage term. It is important to note that although discounted rates can help you save money over the course of your loan in some cases, they may not always be more cost-effective than other types of mortgages such as fixed-rate deals.

Overall, discounted rate mortgages can be a useful option for borrowers looking to save money on their monthly mortgage payments. However, it is important to research all the available options before committing to any deal and ensure you are getting the best deal for your particular circumstances. 

Tracker Rate Mortgages

Tracker rate mortgages change in line with the Bank of England’s base rate plus a few percent. Tracker rates usually last for one to five years before reverting to a SVR. This means that if the Bank of England increases its base rate, then your interest payments will also increase, so you would be paying more for your mortgage each month.

But if there is a reduction in the base interest rate, then you would pay less for your mortgage each month. However, you do not have the security of a fixed rate mortgage and should interest rates increase significantly during your loan period then this could be costly for borrowers.

It is important to consider all aspects when choosing a tracker rate mortgage. Talk to a professional mortgage adviser before committing to one so they can discuss all the options available and help you find the right solution for your needs.

Which type of mortgage is suitable for me?

One of the most important things to consider when buying a property is the type of mortgage you take out. If you’d like advice on which mortgage may be suitable for you, we’ll review your financial situation and provide suggestions and recommendations, based on the information you provide. To discuss your requirements, contact the team at Yes Mortgage Services Limited  telephone 0800 612 5596  email [email protected]. Remember we have access to a comprehensive panel of lenders and do not charge you a broker fee for our services. 

“Your property may be repossessed if you do not keep up repayments on your mortgage.  Yes Mortgage Services Limited do not charge a broker fee.”

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At Yes Mortgage Services, we offer a comprehensive range of products from across the market.

Irrespective of whether you are looking to buy a new home, re-mortgage an existing property, or looking to protect your family from the unpredictability that life throws at it or protect your income if you are unable to work due to accident or ill health.

Yes Mortgage Services are committed to offering you the highest possible standards of service. We can undertake the whole process from answering the initial questions through to handling multiple product applications. Ensuring that everyone gets treated with the same urgency and maintaining your best interests are our main goals irrespective of the value of the mortgage.

We recognise that both we and our customers have everything to gain if we look after your best interests and treat you fairly in all aspect of our dealings with you.

Yes Mortgage Services

Contact Us

YES Mortgage Services Limited
The Old Barn
Brooklands Farm
Mannington
Wimborne
BH21 7JU

Hours
Monday – Friday 0900 – 1700

Contacts
0800 612 5596
[email protected]

We don’t charge a broker fee

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Your property may be repossessed if you do not keep up repayments on your mortgage. Yes Mortgage Services Limited do not charge a broker fee.⁣
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More and more investors are buying properties within a Limited Company to keep things tax efficient. ⁣

But when it comes to refinancing or purchasing your new investment property, the process of getting a mortgage can feel challenging.⁣

Not anymore!⁣

Our Specialist Mortgage Advisors know which Mortgage Lenders are used to working with Limited Company Buy to Let portfolios. They`ll find you the most suitable deal and save you time and money by managing your mortgage application from start to finish. ⁣

Visit our website to learn more (🔗 in bio)⁣

...⁣

Your property may be repossessed if you do not keep up repayments on your mortgage. Yes Mortgage Services Limited do not charge a broker fee.⁣

Before pursuing Limited Company Buy To Let we recommend you seek advice from a tax expert⁣

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We believe in providing quality financial advice to everyone, regardless of their financial status. ⁣
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That's why we don't charge a broker fee 🤩⁣
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We'll look after you for the lifetime of your mortgage/home ownership, ensuring you never pay more than you should on your loan. Whether you're remortgaging, moving home, or making any subsequent property purchase, we've got you covered.⁣
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Visit our website (🔗 in bio) to learn more.⁣
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Your property may be repossessed if you do not keep up repayments on your mortgage. Yes Mortgage Services Limited do not charge a broker fee.⁣
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We believe in providing quality financial advice to everyone, regardless of their financial status. ⁣

That`s why we don`t charge a broker fee 🤩⁣

We`ll look after you for the lifetime of your mortgage/home ownership, ensuring you never pay more than you should on your loan. Whether you`re remortgaging, moving home, or making any subsequent property purchase, we`ve got you covered.⁣

Visit our website (🔗 in bio) to learn more.⁣

...⁣


Your property may be repossessed if you do not keep up repayments on your mortgage. Yes Mortgage Services Limited do not charge a broker fee.⁣

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#mortgagetips #mortgageexpert #devonproperty #bournemouthbusiness #southcoastuk #mortgagebroker #mortgageuk #ringwood #hampshireuk #mortgageadviser
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Being self-employed has its perks, but when it comes to getting a mortgage, things can get a little tricky. But you don't have to navigate this process alone.⁣
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We have access to a wide range of lenders and a deep understanding of what each one looks for when it comes to self-employed mortgages. Meaning we can find the most appropriate lender for your circumstances and needs!⁣
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And the best bit? We don't charge a broker fee 🤩⁣
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If you'd like to chat with one of our advisors about self-employed mortgages give us a call on 0800 612 5596 or send us a DM⁣
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Your property may be repossessed if you do not keep up repayments on your mortgage.  Yes Mortgage Services Limited do not charge a broker fee.⁣
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#selfemployedmortgage #selfemployedmortgages #selfemployed #dorsetbusiness #bournemouthbusiness

Being self-employed has its perks, but when it comes to getting a mortgage, things can get a little tricky. But you don`t have to navigate this process alone.⁣

We have access to a wide range of lenders and a deep understanding of what each one looks for when it comes to self-employed mortgages. Meaning we can find the most appropriate lender for your circumstances and needs!⁣

And the best bit? We don`t charge a broker fee 🤩⁣

If you`d like to chat with one of our advisors about self-employed mortgages give us a call on 0800 612 5596 or send us a DM⁣
...⁣

Your property may be repossessed if you do not keep up repayments on your mortgage. Yes Mortgage Services Limited do not charge a broker fee.⁣

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#selfemployedmortgage #selfemployedmortgages #selfemployed #dorsetbusiness #bournemouthbusiness
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A JSPB mortgage enables you to accept the financial support of your family while retaining a sense of independence through sole ownership of your property.⁣
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If you'd like to chat with one of our advisors about Joint Borrower Sole Proprietor Mortgages or buying your first home, give us a call on 0800 612 5596 or send us a DM⁣
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Your property may be repossessed if you do not keep up repayments on your mortgage. Yes Mortgage Services Limited do not charge a broker fee.⁣
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#firsttimebuyeruk #firstimehomebuyers #propertyladder #firsttimehomeowners #firsttimebuyertips #JSPBmortgage

A JSPB mortgage enables you to accept the financial support of your family while retaining a sense of independence through sole ownership of your property.⁣

If you`d like to chat with one of our advisors about Joint Borrower Sole Proprietor Mortgages or buying your first home, give us a call on 0800 612 5596 or send us a DM⁣

...⁣


Your property may be repossessed if you do not keep up repayments on your mortgage. Yes Mortgage Services Limited do not charge a broker fee.⁣

...⁣

#firsttimebuyeruk #firstimehomebuyers #propertyladder #firsttimehomeowners #firsttimebuyertips #JSPBmortgage
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Life throws curveballs, don't let a leaky roof be one! Building insurance provides peace of mind knowing your home's structure is covered. Talk to Kelly, our insurance advisor, to find the right coverage for your mortgage.⁣
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Connor joined our team back in July 2017!  He's lived all around the Southwest, from Cornwall to Bristol, and now he's found his sweet spot in Wellington, Somerset—right between the two!⁣
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When he's not crunching numbers, you'll find him whipping up some delicious dishes, hosting get-togethers with friends and family or enjoying the delights at his local cider farm🍺🌿⁣
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All of our mortgage advisors (Connor included) are ready to help you whether you're looking to remortgage, buy your first home, or upgrade to a new one. The best bit is we don't charge a broker fee! Get in touch on 0800 612 5596 or send us a DM⁣
⁣
⁣
...⁣
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Your property may be repossessed if you do not keep up repayments on your mortgage. Yes Mortgage Services Limited do not charge a broker fee.⁣
⁣
...⁣
⁣
#ukmortgage #mortgagesuk #wellingtonsomerset  #mortgageexperts #westcountry

Connor joined our team back in July 2017! He`s lived all around the Southwest, from Cornwall to Bristol, and now he`s found his sweet spot in Wellington, Somerset—right between the two!⁣

When he`s not crunching numbers, you`ll find him whipping up some delicious dishes, hosting get-togethers with friends and family or enjoying the delights at his local cider farm🍺🌿⁣

All of our mortgage advisors (Connor included) are ready to help you whether you`re looking to remortgage, buy your first home, or upgrade to a new one. The best bit is we don`t charge a broker fee! Get in touch on 0800 612 5596 or send us a DM⁣


...⁣

Your property may be repossessed if you do not keep up repayments on your mortgage. Yes Mortgage Services Limited do not charge a broker fee.⁣

...⁣

#ukmortgage #mortgagesuk #wellingtonsomerset #mortgageexperts #westcountry
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We're flying the flag for Somerset! ⁣
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We`re flying the flag for Somerset! ⁣

With a team spread across the Southwest, we`re proudly celebrating #SomersetDay and sending a special shoutout to our amazing mortgage advisor, Connor, who`s lucky enough to live there.⁣

Let`s have a bit of fun - how many of these places can you name? Share your score in the comments 👇⁣


...⁣

#somersetlife #loveforsomerset #visitsomerset #somerset #somersetday
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So you've found your dream home and now it's time to apply for a mortgage. Here's what a lender will usually want to know:⁣
⁣
👉 Your income, including any pensions, investments or financial support you receive (e.g. child benefit)⁣
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👉 Your other financial commitments like household bills, overdraft payments and whether you have any children.⁣
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👉 Any potential lifestyle changes that might affect your ability to make repayments in the future, such as having a baby, taking redundancy, or returning to education.⁣
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👉 To prove your incomings and outgoings, you'll need to provide payslips, tax forms, and details of any financial arrangements you have (e.g. car payments, paying off your student loan, pension contributions). You'll also need to show household bills, council tax bills, insurance paperwork, and any invoices for childcare.⁣
⁣
Don't worry if this sounds overwhelming - our team of experts is here to guide you through the process. Give us a call at 0800 612 5596 or visit our website (🔗 in bio) to learn more.⁣
⁣
⁣
...⁣
⁣
Your property may be repossessed if you do not keep up repayments on your mortgage.  Yes Mortgage Services Limited do not charge a broker fee.⁣
⁣
...⁣
⁣
#firsttimebuyeruk #firstimehomebuyers #propertyladder #firsttimehomeowners #firsttimebuyertips

So you`ve found your dream home and now it`s time to apply for a mortgage. Here`s what a lender will usually want to know:⁣

👉 Your income, including any pensions, investments or financial support you receive (e.g. child benefit)⁣

👉 Your other financial commitments like household bills, overdraft payments and whether you have any children.⁣

👉 Any potential lifestyle changes that might affect your ability to make repayments in the future, such as having a baby, taking redundancy, or returning to education.⁣

👉 To prove your incomings and outgoings, you`ll need to provide payslips, tax forms, and details of any financial arrangements you have (e.g. car payments, paying off your student loan, pension contributions). You`ll also need to show household bills, council tax bills, insurance paperwork, and any invoices for childcare.⁣

Don`t worry if this sounds overwhelming - our team of experts is here to guide you through the process. Give us a call at 0800 612 5596 or visit our website (🔗 in bio) to learn more.⁣


...⁣

Your property may be repossessed if you do not keep up repayments on your mortgage. Yes Mortgage Services Limited do not charge a broker fee.⁣

...⁣

#firsttimebuyeruk #firstimehomebuyers #propertyladder #firsttimehomeowners #firsttimebuyertips
...

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Just because your current mortgage lender worked for you in the past doesn't mean it's still the best fit for your current needs...⁣
⁣
By exploring what other lenders have on offer, you might discover better deals that are more suited to your current needs!⁣
⁣
Whether you're looking to save money, release equity, or consolidate debt, we're here to guide you through the remortgage process. ⁣
⁣
Give us a call on 0800 612 5596 - our advice to you is FREE!⁣
⁣
...⁣
⁣
⁣
Your property may be repossessed if you do not keep up repayments on your mortgage. Yes Mortgage Services Limited do not charge a broker fee.⁣
⁣
...⁣
⁣
#remortgageuk #houseowner #homeownerlife #homeownertips  #howtosavemoney #houseaddictive

Just because your current mortgage lender worked for you in the past doesn`t mean it`s still the best fit for your current needs...⁣

By exploring what other lenders have on offer, you might discover better deals that are more suited to your current needs!⁣

Whether you`re looking to save money, release equity, or consolidate debt, we`re here to guide you through the remortgage process. ⁣

Give us a call on 0800 612 5596 - our advice to you is FREE!⁣

...⁣


Your property may be repossessed if you do not keep up repayments on your mortgage. Yes Mortgage Services Limited do not charge a broker fee.⁣

...⁣

#remortgageuk #houseowner #homeownerlife #homeownertips #howtosavemoney #houseaddictive
...

2 0
If you're a member of the Armed Forces and need mortgage advice - we're here to support you.⁣
⁣
We're a team of (ex-military) Mortgage Advisors, who understand the pressures you face and speak your language - from the terminology to the banter of service life. ⁣
⁣
We can even read military pay statements! ⁣
⁣
Visit our website to learn more (🔗 in bio)  or give us a call on 0800 612 5596.⁣
⁣
⁣
...⁣
⁣
⁣
Your property may be repossessed if you do not keep up repayments on your mortgage. Yes Mortgage Services Limited do not charge a broker fee.⁣
⁣
...⁣
⁣
#armedforces #militaryfamily #ukarmedforces #ukmilitary #ukveterans #forcesfamilies #ukveteranowned #mortgagebroker

If you`re a member of the Armed Forces and need mortgage advice - we`re here to support you.⁣

We`re a team of (ex-military) Mortgage Advisors, who understand the pressures you face and speak your language - from the terminology to the banter of service life. ⁣

We can even read military pay statements! ⁣

Visit our website to learn more (🔗 in bio) or give us a call on 0800 612 5596.⁣


...⁣


Your property may be repossessed if you do not keep up repayments on your mortgage. Yes Mortgage Services Limited do not charge a broker fee.⁣

...⁣

#armedforces #militaryfamily #ukarmedforces #ukmilitary #ukveterans #forcesfamilies #ukveteranowned #mortgagebroker
...

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Worried about the unexpected?⁣
⁣
Income protection insurance can provide you with a monthly income to replace any lost income if an accident or sickness keeps you from working.⁣
⁣
But do you really need it? ⁣
⁣
The truth is, no one likes to think about the what-ifs, but it's always better to be cautious and ensure you're well-covered. You can breathe a little easier, knowing that your financial well-being is safeguarded.⁣
⁣
If you'd like help in finding the right policy for you, our insurance advisor Kelly is on hand. Send us a message, or call us on 0800 612 5596.⁣
⁣
⁣
...⁣
⁣
#incomeprotection #financialplanning #moneylessons #mortgagebrokers #mortgageprotection

Worried about the unexpected?⁣

Income protection insurance can provide you with a monthly income to replace any lost income if an accident or sickness keeps you from working.⁣

But do you really need it? ⁣

The truth is, no one likes to think about the what-ifs, but it`s always better to be cautious and ensure you`re well-covered. You can breathe a little easier, knowing that your financial well-being is safeguarded.⁣

If you`d like help in finding the right policy for you, our insurance advisor Kelly is on hand. Send us a message, or call us on 0800 612 5596.⁣


...⁣

#incomeprotection #financialplanning #moneylessons #mortgagebrokers #mortgageprotection
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