Mortgage Types and Rates
Compare our mortgage types and decide which one is best for you.
NatWest mortgages are available for over 18s
Your home or property may be repossessed if you
do not keep up repayments on your mortgage
What types of mortgages do we offer?
Finding the best mortgage deal isn’t just about looking for the cheapest fees or finding the lowest rate of interest. Different types of mortgages offer different benefits and you’ll need to consider your own personal situation when deciding which mortgage is right for you.
The most popular mortgages are fixed rate and tracker, but there are also other types of mortgages that you’ll need to consider.
Read our guide below to help you understand the different types of mortgages available and allow you to explore the rates we offer:
Fixed rate
As the interest rate is fixed, a fixed rate mortgage guarantees you pay the same amount for a period of time, usually two or five years.
With a fixed rate mortgage you’ll know exactly how much your regular payment will be, so it’s perfect for helping to plan a monthly budget and keep your spending on track.
After this time, your interest rate will likely go back to the Standard Variable Rate (SVR). The SVR is the interest rate set by your lender which could rise or fall. If it falls, your regular payment may reduce, but if it rises, your regular payment may increase.
If you take out a fixed rate mortgage you will not get the benefits of any fall in interest rates.
Tracker rate
Unlike a fixed rate mortgage, your interest will rise and fall in line with another interest rate – typically the Bank of England’s base rate – for a certain period of time. This is usually two, three or five years.
If the rate drops, your monthly mortgage payments will also drop. You can take advantage of these lower rates by overpaying on your mortgage (although there may be early repayment charges). This can make it quicker to pay off your mortgage and reduce the amount of interest you pay.
However, if the rate goes up, so will your mortgage payments as you’re not protected by a fixed rate.
Standard variable rate
Standard variable rate, or SVR, is the mortgage type your fixed rate or tracker will automatically convert to when your initial term is over.
If your mortgage is on the standard variable rate and it changes, your mortgage payments will also change, either going up or down depending on the rate.
If you don’t want to move on to a SVR mortgage, you can shop around at the end of your fixed term for another fixed term deal.
Offset
An offset mortgage allows you to link your savings and current account to your mortgage so you only pay interest on the difference between your mortgage and the balance of your savings account.
Although the interest rates are often higher, you’ll be able to repay your balance in full at any time without any early repayment charges.
While this could mean that your savings are no longer growing, you'll still have full access to them, allowing you to deposit and withdraw funds.
Interest only mortgages
This is where you only pay the interest on your mortgage and nothing off the initial amount borrowed.
At the end of the mortgage term you’ll still owe the full amount of the mortgage, so it’s important that a suitable repayment plan is in place to repay the mortgage off in full at the end of the term.
The type of mortgage is not available to all customers and may have specific terms and conditions attached.
Buy to let
If you’re looking to invest and buy a property to rent out you need to get a Buy to Let mortgage.
Buy to let mortgages are similar to a standard mortgage, although interest rates and fees tend to be higher for this mortgage, as well as the minimum deposit.
Planning your mortgage
Mortgage calculators
Take a look at what you could borrow and compare mortgage deals with our handy mortgage calculators.
The mortgage application process
Glide through the mortgage application process with our step by step advice.
Mortgage guides
The home buying process can be tricky to understand. We’re here to support you with our range of helpful guides.
Please see the General Information document below for full information about NatWest mortgages, from the types of mortgage we offer to the levels of service we provide. It's all here in one place.