What types of Mortgage are available?

There are two basic forms. Fixed rates and Variable rates.

A fixed rate offers a known level of payment for the period of time that the rate is fixed. Changes in interest rates, either up or down during the fixed period will not affect your mortgage payments. It is important to decide how long to fix the rate for. Many lenders will offer 2,3 or 5 year rates. It is possible to fix the rate for longer with some lenders. During a fixed period there will be penalties for paying off the mortgage or transferring to another lender so there is no point in fixing for a 5 year period if you only intend to stay in the property for 3 years.

Variable rates come in various forms

Standard Variable Rate. (SVR)   
This is the basic rate that the lender charges whilst offering no incentives apart from the option to repay the mortgage at any time without  penalty. This would not be attractive to many first time buyers.

Discount Rates.
Below the SVR for a defined period by a specific percentage i.e. 1.5% below SVR for 2 years. As mortgage rates change with interest movements,  lenders will adjust their SVR and your rate and monthly payment will change accordingly.

Tracker
The rate will follow the movements of the Bank Base Rate and your payment will change, either up or down in the month following the rate change. The rate may track for a period of time or for the length of the mortgage. If it is for the length of the mortgage then you not go onto the lenders SVR at all which would offer a considerable saving.

There are other types of mortgage schemes and options available which will depend on your personal situation. This is why advice is necessary, to make sure that you get the best option for you as an individual.