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UK mortgage products — types of mortgage explained

Written by Simon Baker BSc (Hons)  |  Reviewed by The Complete Mortgage Shop, FCA regulated (FRN 728880)  |  Last updated July 2025

The UK mortgage market offers a wide range of products designed for different borrower needs — from first-time buyers to experienced property investors. The main product types are distinguished by how the interest rate is set and whether the mortgage is for a residential purchase, remortgage, or investment property.

Fixed rate mortgages

A fixed rate mortgage locks your interest rate for a set period, typically 2, 3, or 5 years. Your monthly payment stays the same regardless of changes to the Bank of England base rate or lender standard variable rates. Fixed rate deals are popular with borrowers who want payment certainty. At the end of the fixed period, you revert to the lender’s standard variable rate (SVR) unless you remortgage to a new deal.

Tracker mortgages

A tracker mortgage follows the Bank of England base rate, usually at a set margin above it (for example, base rate + 1%). Your payments go up or down when the base rate changes. Trackers can be cheaper than fixed rates when the base rate is low, but they carry the risk of rate increases.

Remortgages

A remortgage is when you switch your existing mortgage to a new deal — either with the same lender or a different one — without moving home. Remortgaging is common at the end of a fixed or tracker period to avoid reverting to the lender’s SVR, which is typically higher. It can also be used to release equity or consolidate other debts into the mortgage.

Buy-to-let mortgages

Buy-to-let (BTL) mortgages are for property purchased as a rental investment rather than a primary residence. Lenders assess the application differently from residential mortgages — rental income coverage is a key factor, typically requiring rent to cover 125–145% of the monthly mortgage payment. Maximum LTV is usually 75%.

Professional mortgages

Some lenders offer enhanced terms to professionals such as doctors, solicitors, accountants, and dentists — typically higher income multiples or more favourable underwriting criteria. These are available through specialist lenders and intermediaries. See the professional mortgages section in the sidebar for your profession.

Bad credit and adverse credit mortgages

If you have a history of missed payments, CCJs, or defaults, mainstream lenders may decline your application. Adverse credit mortgages are offered by specialist lenders at higher rates, reflecting the additional risk. An independent broker with access to specialist lenders can advise on your options.

Which mortgage is right for you?

The best mortgage product depends on your circumstances — your income, deposit size, employment status, credit history, and how long you plan to hold the property. An independent whole-of-market broker has access to hundreds of products from all mainstream and specialist lenders and can compare the full market on your behalf. Use the form below to get started.

Speak to a broker about the right mortgage product