A fixed-rate mortgage means the interest rate stays the same during a set period of time, usually between 2 and 5 years – although some lenders offer fixed rates of 10 years or more. This stability can be great if you like the certainty and peace of mind of knowing that your mortgage payments will stay the same.

A tracker mortgage charges an interest rate that is usually a few percentage points higher than the Bank of England’s base rate. The mortgage will then “track” the base rate, which means that your monthly payments could rise and fall in line with any changes.

A discounted variable rate mortgage is similar to a tracker mortgage, but rather than being linked to the Bank of England’s base rate, it is set at a fixed percentage below the lender’s standard variable rate (the SVR). The mortgage will then follow the lender’s SVR, and your payments could rise and fall, depending on how their SVR changes.

A standard variable rate mortgage follows the lender’s SVR, without any discount. You’ll automatically go onto this type of mortgage at the end of any introductory fixed, tracker or discounted deal.