Understanding different types of mortgages

When choosing a mortgage, there is more than just the interest rate and fees you’ll need to focus on. Read our guide to find out more about the various mortgage types.

Finding the best mortgage for you can be difficult, but we can give you a quote that's tailored to you and your lifestyle. We offer many different types of mortgages. So, whether you are a first time buyer or you're higher up the property ladder, we can provide a flexible range of mortgages designed just for you.

Variable rate mortgage

If we change our Standard Variable Rate then the rate you pay will alter accordingly. If the rate rises then your payment will increase, if the rate decreases you will benefit from a reduction in your monthly payment.

Discount rate mortgage

Some of our mortgages come with an initial discounted period. You can make the most of the lower rate and spend your extra money on your new home. These can often be useful to first time buyers who may have less to spend on moving in.

Base rate tracker mortgage

Your mortgage rate will reflect the Bank of England Base Rate. If the rate increases then your payment will increase, if the Base Rate falls you will benefit from a reduction in your monthly payment.

Fixed rate mortgage

We can give you a fixed rate mortgage quote that allows you to pay a set amount each month for a specific period. The advantage is that you know exactly how much you will have to pay each month so you can budget more easily.

Offset mortgage

This allows you to offset your savings against the value of your mortgage balance. This offsetting could save you thousands of pounds and reduce the term of your mortgage.


A remortgage is an excellent way to raise money from your home for a whole range of purposes. You could use it for a holiday, a car or home improvements. If your home has increased in value and the mortgage is significantly less than the value of your home, a remortgage might be a good way to release some extra cash with low repayments.

Repayment mortgage

This involves paying back the interest on the amount borrowed from us as well as paying off the capital borrowed. At the end of the mortgage term you will know that you have repaid all the interest and the capital, so you will own your home outright.

Interest only mortgage

By selecting an interest only mortgage, you will only pay interest on a monthly basis and not reduce the capital balance of the loan. This means that you’ll need a plan in place (e.g. endowment policy, ISA, sale of property) to repay the balance at the end of your term.

You are responsible for ensuring that you will be able to pay off the capital borrowed at the end of the mortgage term and it is important that you regularly check your mortgage repayment plan to make sure it’s on track to repay the loan amount when your mortgage comes to an end.

Joint Mortgage Sole Proprietor (JMSP) mortgage

Joint Mortgage Sole Proprietor (JMSP) mortgages use the income of a family member in order to increase your borrowing capacity. By combining your income with that of a family member means you can borrow more.

JMSP allows one family member to be added to the mortgage in order to support a single occupying borrower, meaning there can be two borrowers named on the mortgage. The ownership of the property however would be solely in the name of the occupying borrower.

Self-build mortgage

A self-build mortgage allows you to borrow money in a number of pre-agreed stages as your property is built, so you get the best mortgage rate for your project by borrowing in stages. The simple process requires you to provide details of your proposed project, together with the costs involved.

Self Employed Mortgages

More people are becoming self-employed every year, and at Newcastle Building Society we don’t think being self-employed should stop you from getting a mortgage. That’s why we created a specific range of products tailored to those in self-employment. We also accept applications from customers with only 1 years’ accounts so you could get on the property ladder sooner.


All properties must have a minimum purchase price and / or valuation (whichever is lower) of £40,000. Full written quotations available on request.

Mortgages are only available in respect of real properties (residential properties) located in England, Wales and Scotland and Northern Ireland. All mortgages subject to status and valuation and are not available to persons under 18 years of age.

For all of our useful guides and tools to help you on your journey to buying your first home, visit our First Time Buyers page. To compare the different types of mortgage deals that are currently available, get in touch with one of our mortgage advisers to begin your mortgage application process.

Your mortgage will be secured on your home. Your home may be repossessed if you do not keep up repayments on your mortgage.

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