Mortgage Types in Hove – Fixed, Tracker or Discounted in 2025
Choosing the right type of mortgage can sometimes feel harder than choosing the property itself. With fixed, tracker and discounted deals all available in Hove, it helps to understand how each one actually behaves once you move in.
Fixed rate mortgages – stability first
A fixed rate does what it says on the tin. Your interest rate is set for a period, usually 2, 3 or 5 years, sometimes longer.
Pros:
- Monthly payments stay the same for the fixed period
- Easier to budget, especially for first-time buyers
- Peace of mind if you are nervous about rate rises
Cons:
- Early repayment charges if you want to repay or move during the fixed term
- You might miss out if rates fall sharply during your fix
Fixed rates are popular with buyers across Hove, Aldrington and Southwick who prefer certainty, particularly families managing tight monthly budgets.
Tracker mortgages – following the base rate
Tracker mortgages move in line with a reference rate, usually the Bank of England base rate, plus a set margin.
Pros:
- You benefit if the base rate falls
- Some trackers have no or low early repayment charges
- Can suit people planning to overpay or clear the mortgage faster
Cons:
- Payments can go up if the base rate rises
- Harder to predict long term costs
Trackers sometimes appeal to buyers in Hove who have more wiggle room in their budget and are comfortable riding out some movement in rates.
Discounted variable mortgages – a deal off the lender’s rate
A discounted mortgage gives you a set discount off the lender’s standard variable rate (SVR) for a period.
Pros:
- Often start cheaper than some fixed deals
- You get a discount even if the SVR changes
Cons:
- The underlying SVR can move at the lender’s discretion
- Payments are not fixed, so they can still rise
Discounts can occasionally work for buyers who want a short term stepping stone before fixing, or for those who expect to move again relatively soon.
Which type suits you in Hove?
Ask yourself:
- Do I sleep better knowing my payment is set, or am I comfortable with some movement?
- How long am I likely to stay in this property?
- Will I want to make regular overpayments?
- How tight is my monthly budget after bills, travel and living costs in Hove?
Once you have honest answers to those questions, it is easier to choose a type and then compare specific products within that category.