Pelican Mortgages | Mortgage Types

Fixed Mortgage

This is a fixed mortgage payment over a specified period of time, usually between 2-15 yrs.
Can be the ideal solution if you are unsure which direction the interest rates will change
This type of mortgage also helps you to plan ahead and budget accordingly to your lifestyle
We have access to the whole of market and can source great range of deals including special offers
However there is likely to be an early repayment charges which may prevent you to switch to another competing product

Standard Variable Rate (SVR)

All the lenders in the whole of market has a standard variable rate which moves with the direction of interest rates set by the monetary policy committee. (Typically 2% above the base rate)
Suitable for short term borrowing
Not suitable for those who want to plan ahead or budget planning

Capped Rate Mortgage

Capped rate mortgage is a variable rate mortgage which has a fixed upper rate limit (the cap)
This type of mortgage prevents interest rates rising above a certain interest level
Unlike Fixed rate mortgages, you will benefit if interest rates decreases
Can be suitable who want to plan their budget with some form of certainty but also benefit when interest rate goes down
However there are likely to be penalties if you want to repay the mortgage early during the term of capped rate mortgage or switch to another product or lender

Tracker Mortgages

With tracker mortgage, you benefit from any drop in the base rate immediately unlike standard variable rate mortgages
Tracker mortgages can be fixed, discounted, stepped or flexible.
The difference between tracker base and base rate is usually smaller compared to lender standard variable rat.
However mortgage repayments can increase if the base rate increases and makes it difficult to plan a financial budget
We can search the entire market for the best deals on tracker products suited to your needs

Discount Mortgages

This type of product is ideal if you want to save some money in the first few years of your mortgage, as the interest rates are discounted from the lender standard variable rate.
Discount mortgages can vary from one year to many years. (Typically 2, 5 and 10 years).
Not suitable for those who are on a tight budget who wants certainty in their future payments
Discount mortgages tend to have a redemption penalty (Early repayment charges) during the discounted term

LIBOR Mortgages

This is set by the Bank of England and represents the rate at which banks borrow from each other.
Very similar to standard variable rate, although the LIBOR mortgages are reviewed usually quarterly.
Lenders who specialise mortgages for individuals with previous credit problems usually have their interest rates charged linked to the LIBOR rates

Flexible Mortgage