Making overpayments: If you’re able to pay more than your agreed monthly repayment, you’ll be able to clear your debt quicker – and save a substantial amount of interest in the process. Most mortgages allow you to make some overpayments, although they typically restrict the amount you can overpay to 10%. If you want to overpay more, look for deals with unlimited overpayments.
Taking payment holidays: With this feature, borrowers wishing to take a 'holiday' arrange to miss one or two payments, and their monthly payments are recalculated to spread the cost of those missed payments across the life of your loan. While this could be a useful feature in case of emergency, when you take a payment holiday, your repayments will go up.
Offset mortgages: With these mortgages, you keep your mortgage debt and savings with the same bank or building society. Your savings are then used to reduce – or 'offset' – the amount of mortgage interest you're charged.
This guide to mortgages was produced in collaboration with L&C Mortgages, the UK’s largest fee free mortgage broker and adviser.
Cash back mortgages: Some deals offer cash back incentives. Although the costs of moving can make extra cash sound tempting, these deals often have high fees and interest. Be sure you look at the total cost before choosing a deal.
Extended offer periods: If you're buying a home off-plan, shop around for a lender that provides extended mortgage offers for new-builds. Your new home might not be ready within the normal six-month offer period, so it’s good to have some extra time just in case.
To help you get the right rate for you, read how to find the best mortgage rate.