About our Mortgages
Compare our mortgage types and decide which one is best for you.
Available for over 18s
do not keep up repayments on your mortgage
Icon expand Fixed rate
A fixed rate mortgage is a way of guaranteeing that you pay the same amount each month for an agreed period of time, usually two or five years. Once the agreed period ends, your interest rate will likely go back to the Standard Variable Rate, set by the lender.
A fixed rate mortgage provides you with a level of certainty that a variable rate cannot guarantee. You’ll know exactly how much you’ll be paying out each month, meaning you can budget effectively and you won’t be hit with any unexpected costs.
If during the agreed period, interest rates go up or your lender’s standard variable rate rises, a fixed rate mortgage means you’re protected and your payments won’t be affected. This however, can also work as a disadvantage. If interest rates or the standard variable rate falls during your agreed period, you won’t see the benefit and you will continue to pay the higher rate.
Icon expand Tracker rate
A tracker rate mortgage is a form of variable rate mortgage. It follows an interest rate that is usually set in line with the Bank of England base rate for a certain period of time, usually two, three or five years.
Unlike a fixed mortgage deal, if the rate drops, so will your mortgage payments. You can take advantage of these lower rates by overpaying on your mortgage (bearing in mind early repayment charges) and shortening the amount of time it takes to pay off your mortgage, cutting the amount of interest you pay in the long run.
However, if rates rise, your payments will also rise, and unlike a fixed rate mortgage you won’t be protected from the rising costs if this occurs.
If you decide to leave the deal and repay your mortgage off early during the agreed period, you may be subject to an Early Repayment Charge. You should also be mindful of the fact that once the agreed period comes to an end, you will automatically be placed onto the Standard Variable Rate which may be a big jump in cost, though you will have the option to arrange a new mortgage deal in order to avoid this.
Icon expand Offset
Though the rates can often be higher compared to a standard mortgage, an offset mortgage allows you to link both your current and savings account balances to your mortgage. In doing so, you will reduce the amount of interest that you pay on your mortgage, as you’ll only be charged interest on the difference between those accounts and your mortgage balance.
Compared to a standard mortgage, you’ll be able to repay your balance in full at any time without the need to pay an early repayment charge. Also, compared to a standard savings account (with the exception of a cash ISA), as you’re not technically earning interest, you’re just reducing the amount of interest you have to pay, you won’t have to pay any additional tax on your savings income. This means, however, that your savings will no longer earn interest and will no longer grow in value.
You’ll still have the same access to your accounts, allowing you to deposit and withdraw funds, though your mortgage payments may increase if your savings are reduced.
Icon expand Buy to let
If you’re looking to invest and buy a property to rent out then you will need to take out a Buy to Let mortgage.
Though similar to a standard mortgage in many ways, there are several differences that you should be aware of. Interest rates and fees tend to be higher for this type of mortgage and the minimum deposit required is also usually higher.
Whilst you can cover the cost of your mortgage and even make a profit by taking on tenants, you need to be prepared for times when you cannot find tenants or you incur costs dealing with repairs and maintenance.
Please see the General Information document below for full information about Royal Bank of Scotland mortgages, from the types of mortgage we offer to the levels of service we provide. It's all here in one place.