Help choosing the right mortgage in 2013.

Need help working out which mortgage best suits your needs in 2013?

There are many forms of mortgage deal, and which one you should choose is down to your individual circumstances. Deal Direct can take you through all of the different mortgage types available in 2013 to find the one which is best suited to you.

Fixed rate mortgages.

With a fixed rate mortgage, repayments are fixed at the beginning of the mortgage term and remain the same for the duration of the deal. You are in effect taking out insurance against an interest rate rise.

Variable rate mortgages.

Variable mortgage rates change over time depending on UK economic conditions. There are three types of variable mortgage available, tracker, standard variable and discounted variable rates.

Standard variable rate mortgages are usually one or two per cent or so higher than the Bank of England base rate and, they shift in line with base rate movement.

A tracker is pegged to the BoE base rate. Trackers may have a 'collar', below which the rate will not fall. 'Lifetime trackers' follow the base rate for the duration of the mortgage.

A discounted mortgage usually offers a discount on the lender's tracker or standard variable rate, discount periods tend to be relatively short.

Capped mortgages.

Capped mortgages are a hybrid product where rates move in line with the Bank of England base rate, but a guaranteed maximum 'cap' is agreed above which repayments will not rise, regardless of what happens to the Bank of England rate.

Cashback mortgages.

With a cashback mortgage, the lender will give cashback. The cash received can then be used to pay mortgage fees or help a first-time buyer to set up in their first home. Generally cashback mortgages charge higher rates than standard loans and have penalties for early repayment.

Current account mortgages.

Current account mortgages combine both a mortgage and current account into one balance. The standard monthly repayments are designed to clear the mortgage whatever term, any extra money in the account will act as an overpayment meaning the mortgage will be paid off more quickly.

Offset mortgages.

With an offset, the mortgage, current account and savings are held in separate pots. Savings are then used to pay off more of the capital which will help clear the mortgage early.

Whatever type of mortgage deal you are looking in 2013,

contact Deal Direct.