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Fixed If you prefer a Fixed Rate mortgage, the interest rate applicable to your loan will not alter for a specific period of time. The fixed period will be specified in the relevant section of your mortgage offer. A Fixed Rate mortgage gives you the security and peace of mind of knowing what your monthly payments are going to be for this period. When the fixed rate period ends, the interest rate will automatically revert to a variable rate. |  |
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Discounted If you choose a Discounted Rate mortgage then the interest payable on your loan will be a set amount below the lender's standard variable rate for a specified period. As with a variable rate loan, the interest payable will vary from time to time. At the end of the discounted rate period, the interest payable will automatically revert to the variable rate. this means that your monthly payments will increase. Base Rate Tracker This type of mortgage is directly linked to the Bank of England base rate and immediately alters with any change in the Bank of England's base rate as opposed to being linked to the lender's individual standard variable rate. Capped If your preferred option is a Capped Rate loan then the interest rate applicable to your loan is guarenteed not to rise above a certain level during a specified period of time. During the 'capped' period you have the security of knowing that the interest rate cannot exceed the 'cap' and may even go down. After the spcified period of the 'cap' the interest rate will revert to variable and monthly payments may increase if the variable rate is higher than the 'capped' rate. Cash Back A Cash Back mortgage means that although the interest rate may be fixed or variable, the lender will pay on completion either a fixed amount or a percentage of the loan. These amounts can be used to offset any legal or valuation expenses or, with certain lenders, act as a deposit. Please Note
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