This is another term for the standard mortgage. With an annuity mortgage, monthly payments are used to pay off the loan amount AND the interest charged on the loan.


Interest only mortgages are where monthly repayments are used to pay just the interest charged on a mortgage and not the actual loan amount itself.  They are available from a limited number of lenders.


A fixed interest rate does not change during a specified term, e.g., 1-year, 3-years or 5- years. One important aspect of fixed rate mortgages that first time buyers need to consider is the “break” cost of the loan that will be applied if there is an early redemption (repayment) of the loan. Typically, the “break” cost can be as much as 3-6 months interest. A loan may be redeemed early as a result of the sale of the property or a mortgage refinance.


This is where the rate of interest will fluctuate based on a set of criteria, for example, the European Central Bank (ECB) base lending rate. However, unlike its cousin, the tracker mortgage, adjustments of the rate interest charged on variable rate mortgages is at the discretion of the lending institution that provided the mortgage.


These are discounted interest rate options for a short- term period (such as 6-months or 12-months)

Warning: If you do not keep up your repayments you may lose your home

Warning: You may have to pay charges if you pay off a fixed-rate loan early.

Warning: The cost of your monthly repayments may increase.

Warning: The entire amount that you have borrowed will still be outstanding at the end of the interest-only period.