Here we list the main type of mortgage available to help you buy your own home. A good starting point for a wide selection of mortgage rates can be found on BBC2 TV Teletext on pages 252,253 and 254. These cover standard variable rate mortgages, fixed rate and capped mortgages and first time buyer mortgage from both the main bank and building sicieties.

Repayment Mortgage
This is the old faithful of mortgages, which despite all the gimmicks and fashions has kept its place as one of the most popular forms of borrowing for a house.
With a repayment mortgage, you agree to pay back a sum of money plus interest over a fixed number of years, with all the debt cleared at the end of the life of the mortgage. Unlike endowments or any stock market-related mortgage, you can be sure that at the end of the agreed repayment period all the debt will be paid.
Repayments come with a number of different features, such as fixed rates and capped rates, but the same basic principle applies. You're agreeing to pay back a loan plus interest, with the debt divided up into monthly payments stretching out over the next 20 or 25 years.
For the first years of a repayment mortgage almost all payments go into interest, which is a bit depressing when you read your statement and discover after a year of paying thousands of pounds you only owe a hundred quid less than when you started. The capital sum is mostly cleared in the later stages of a repayment mortgage.
If you haven't got a mortgage that sets a limit on interest rate rises, such as a fixed or capped rate, then the amount you pay back each month can change over the life of a mortgage, depending on the ups and downs of interest rates. Once the fixed or capped period ends, then you'll be cast out on the open sea of variable rates. And if rates are rising ,then your monthly repayment will also go up. Looking on the brighter side, if interest rates go down, you'll be paying less than you might have expected. Just because a repayment is the Steady Eddy of mortgages, it doesn't mean that your monthly mortgage payment won't be liable to change.

Standard Variable Rate Mortgage
This is a loan secured by a mortgage over your home where you repay the interest and capital repayments over the agreed term (typically up to 25 years). The interest and the repayments change with market interest rates over the term of the loan.

Discount Mortgages
The interest rate you pay is discounted off the Basic Variable mortgage Rate. These lower monthly mortgage repayments in the early years of your mortgage means you have more money to spend on other things. A discount mortgage can be included in a first time mortgage package (see below).

Fixed Rate Mortgages
The fixed rate mortgage allows you to know for a period of time exactly how much you're going to be paying each month. With a variable rate mortgage, monthly repayments usually rise and fall with interest rates, but a fixed rate mortgage provides a guaranteed interest rate for the duration of the arrangement. Normally this will be for a period of one to five years after which the repayment will revert to the variable rate. Budgeting is easier with a fixed rate mortgage because your monthly repayments stay the same during the entire fixed rate period. The down side of fixed rate mortgages is that there are often tie-ins or penalties to keep you after the fixed rate finishes and you do not benefit if interest rates drop by geeting lower repayments. Most fixed rate mortgages revert to variable rate after the fixed rate term (typically 1 to 5 years) has finished.

Flexible Mortgages
Flexible mortgage can change to meet your needs. If you have surplus income, you can increase your mortgage repayments or make lump sum payments to save you interest. This will also reduce your mortgage term. If you are feeling stretched, or just need a break, you can borrow money back, take payment holidays or reduce payments against your overpayment credit.

First Time Buyer's Mortgage
This is a mortgage package put together to help first time buyers who often have only a small deposit and need as low as possible initial repayments. Packages are available where up 95 - 100% of the purchase price can be borrowed often with reduced interest rates for a few years. Normally these mortgages change to normal terms after a few years.

Endowment Mortgages
In the 1980's , about three-quarters of new mortgages were endowment mortgages. These have now fallen out of favour because of the falls in the stock market where part of the repayments went to an investment fund invested in the stock market endowment - an investment that at the end of the life of the mortgage should have grown enough to pay off the debt. With an endowment mortgage you only pay off the interest each month, and then make a second payment into the investment fund. If the endowment has grown larger than the sum you borrowed, there could be a bonus at the end of the mortgage. But if the endowment does not grow to meet the amount you've borrowed, you will end up owing money after 25 years of payments.

Foreign Currency Mortgage
Most UK mortgages are in £'s. Some banks can arrange mortgages in foreign currencies. The great danger is that exchange rates can change against you ang thr outstanding amount and your repayments could increease substantially. These mortgages, should however, be considered if you are purchasing a property overseas.

Capped Mortgages
This type of mortgage sets an upper limit on interest rates for an agreed number of years. This means that if the variable rate climbs up the graph paper, borrowers with capped mortgages can be protected, knowing they wont have to pay more. The benefit over fixed rate mortgages is that if interest rates go down, your capped mortgage will still take advantage of this and you will have lower repayments. These benefits are normally only for the opening years of a mortgage.

Second Mortgages
A second mortgage is sometimes taken by your existing lender or a new lender when an addition loan is taken out. Second mortgages are often taken out for home improvements such as double glazing purchase, new kitchens, new car purchase or even to help repay other debts. Interest rates can be substantally higher than the standard variable rate mortgage. This loan, like your first mortgage is secured against your home. Like all mortgages, if you fail to make your payments, you could lose your home. Always take professional advice before completing any mortgage or second mortgage.