The mortgage market can be confusing, especially for first-time buyers who have never bought a property before and haven’t ever considered getting a mortgage. Here are six main types of mortgages that you’ll find on the market today. Your mortgage adviser will help you by making a recommendation on the most appropriate product and expiry period, based on your needs, preferences and requirements. Fixed rate: A fixed rate mortgage means the interest rate given will stay the same over a fixed period. The length of the fixed rate is set by the lender. Your repayments stay the same each month, regardless of what happens to other mortgage rates. These mortgages are popular with first-time buyers and people looking to budget with confidence each month. They can also work well for those with a poor credit history. The downside is that if mortgage rates go down, you could end up paying a higher amount than you would on a variable rate mortgage. Conversely, if rates increase, you could have the advantage of paying less than you would on a variable rate deal. Be aware that some lenders will penalise you with an ERC (Early Repayment Charge) if you decide to exit the deal before the end of the agreed fixed term. Always assess the possible savings you might make from switching and look at the penalties that you could incur, to see if a cheaper deal still makes sense. Variable rate: Every lender has their own standard variable rate (SVR). This is their basic mortgage rate. This can go up and down, usually in line with the Bank of England’s rate changes. However, the lender is free to raise or lower this at any time, as its their lending rate. This means your monthly payments can go up or down, depending on the interest rate at any given time. Some months may see you pay more while you might end up paying less at other times. Discount rate: A discount mortgage gives you a reduction on the lender’s standard variable rate for a specific time, usually two to three years. Discount mortgages are attractive as they can allow you to make lower repayments. However, as the SVR can still fluctuate, they’re not ideal for people who want to stick to a strict long-term budget. Tracker mortgage: This is like a variable rate mortgage except that it tracks a pre-agreed interest rate instead of the lender’s SVR. Tracker mortgages are typically linked with the Bank of England’s interest rate, plus a few per cent on top. Offset mortgage: This mortgage is linked to your savings and current accounts. The value of your savings is offset against the value of your mortgage. This means you’ll only pay interest on the ‘net’ mortgage balance. For example, you might have a mortgage worth £200,000 and £50,000 in savings. An offset mortgage would see you paying interest on £150,000 rather than £200,000. If you don’t keep up with your mortgage payments, your lender has the right to repossess your home to sell it and get their money back.  Its therefore important to ensure you have the most affordable mortgage for your circumstances on the right product.