There are number of options available when talking about current home mortgage rates. You can opt for pension-linked mortgages. It works in a similar way to an endowment mortgage. You will make two monthly payments. One will consist of interest on the loan and the other a separate monthly insurance premium that will repay your loan at the end of the term. In addition, it provides a pension for your retirement.

If you have an interest-only mortgage then you will only be paying interest on your loan. This type of loan is designed for those approaching or over retirement age who cannot take out a long-term mortgage. The amount borrowed is repaid on the sale of the property or on the death of the borrower. Most lenders will allow another interest-only loan if you move, and may offer loan facilities to your relatives if you should die and they wish to keep the property.

There are also low-start mortgages, which are designed to help borrowers over the early years of the term. The lender agrees to charge below the commercial interest rate for up to the first five years, and then charges the standard interest rate at the end of this period. The lender will normally require the interest, which has been unpaid in this initial period, to be paid off over the remainder of the term. These loans can be useful if you are sure that your income is going to increase sufficiently by the time the full interest rate is charged to meet the increased monthly payments.

On the other hand, there are fixed interest rate mortgages. This type of loan is for those who feel able to gamble on changes in interest rates. In these loans the interest rate is fixed at the start of the loan, either for a number of years or the whole term.