THE LOUGHBOROUGH BUILDING SOCIETY - Where people make the difference

Mortgage Types

If you are looking to re-mortgage in the coming months or are buying a property then make sure you talk to The Loughborough to see if we can give you the best mortgage deal to suit your needs. The Society has consistently featured in Best Buy tables over recent years and this coupled with our excellent service levels means we are the Society that really can make a difference to your mortgage!

To help you decide which mortgage type is right for you we have devised below a summary of what each mortgage type is and its advantages and disadvantages.

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE

Discount
This mortgage type features a discount off either our Standard Variable Rate (SVR) or the Bank of England base rate for a designated period of time. You will pay a lower rate for a period of time but you should take into consideration that your payments will increase/decrease as interest rates change.

Tracker
Very similar to a discount mortgage as your rate is discounted off the Bank of England's base rate. The difference between the two is that a Tracker changes with all rate changes rather than a discount which might change. A Tracker does what it says: it tracks the rates that you know your rate will never usually be more than the Bank of England's base rate during the product period but you should take into consideration that your payments will increase/decrease as interest rates change.

Flexible
As the title suggests this mortgage type provides flexibility within your mortgage, usually on your payments. This typically means that you can take payment holidays or make overpayments during the term of your mortgage. The rate payable is usually a lifetime discount off of the providers Standard Variable Rate or the Bank of England's base rate. There is flexibility of payment terms. You will also need to ensure that any underpayments are made up during the term of the mortgage or you may need to pay your mortgage longer than you had planned.

Fixed
Your rate is fixed for a period of time, usually 2-5 years. This product type is very popular with people who need to guarantee their payment amount for budgetary purposes. It's also usually very popular during periods of economic uncertainty and numerous rate changes.

Standard Variable Rate
You are paying the providers Standard Variable Rate which varies from lender to lender and is almost certainly higher than the rates you can achieve through one of the products shown above. If you are on this type of product with another provider then please call 01509 631 950 as we will almost certainly be able to save you money on your monthly payments.

Cash Back
As the name suggests you get cashback when the mortgage completes. This type of product can be ideal for first time buyers or people who are re-mortgaging and need some cash for home improvements.

Buy To Let
With shows such as 'Property Ladder' becoming ever more popular, more and more people are turning to property developments as a way of making an extra income through renting out a house or benefiting from the growth in house prices over a period of time without the burden of mortgage payments.

A Buy To Let mortgage is a product where providers lend money on a property that will be rented out to tenants. Rates are usually higher than what you would expect on your home.

Commercial
This is a mortgage for business premises and The Loughborough has been nominated for awards in this market on a consistent basis.