Mortgage services with Embrace Financial Services

The Help to Buy: Equity Loan scheme closed to new applications on 31st October 2022.

An interest-only mortgage allows you to pay just the interest charged on the loan each month. You don’t have to repay the amount you’ve borrowed (sometimes known as the capital) until the end of the term. 

This is a flexible mortgage linked to your savings or current account. With this type of mortgage, you are only charged interest on the net amount you owe the lender, after offsetting any savings or current account balances against the amount of your mortgage.

A discounted rate gives you a set 'discount' off the lender's standard variable rate (SVR) for a specified period. For instance, if the discount was 1%, you will be charged 1% below the SVR for the period of the discount. 

With this type of mortgage your payments will go up or down when the lender's mortgage rate changes. Most standard variable rates tend to move in line with the Bank of England base rate.

This is a variable rate where the interest rate is a set amount above, below or equal to the Bank of England or some other base rate and so always "tracks" changes in that rate.

Fixed rate mortgages are fixed for a specified number of years, so you know what your interest payments will be over that period. Following this period, the rate will usually revert to the lender's standard variable rate.