Variable Rate

The monthly payment fluctuates in line with the lenders mortgage rate. This can cause budgeting problems in times of increasing interest rates. Some lenders offer an annual review so that the amount you pay only changes once a year with the difference adjusting you outstanding mortgage balance.

Tracker Rate

Lenders may also offer a version of a variable rate mortgage where your monthly payment fluctuates in line with the Bank of England Base Rate, often referred to as a 'Base Rate Tracker'.

Fixed Rate

The monthly payment is fixed over an agreed period of time and will remain the same regardless of whether rates rise or fall.

At the end of the fixed rate term the interest rate usually reverts to the lenders standard variable rate or you may be offered the choice of another product, on the terms available at that time.

CashBack

Some lenders offer a cash payment on completion of the loan, either based on a percentage of the total loan or a flat amount. In some cases, if the loan is redeemed early, a proportion of the cash back may have to be repaid to the lender.

Discounted

The lender offers a true initial discount, on their normal standard variable rate for a given period.

At the end of the discounted period, the rate reverts to the lenders standard variable rate. No interest is deferred so the outstanding mortgage will not increase.

Capped Rate

The interest rate is guaranteed not to go above a certain level throughout the capped rate period, which can be from 1 to 10 years, but you will benefit from any reduction in interest rates.

Flexible Rate

These schemes allow you to overpay or underpay. Any underpaid interest will be added to the outstanding mortgage. Any overpayment will reduce your outstanding mortgage immediately. Some products have the facility to draw down additional funds to a pre-agreed facility limit.

Collared Rate

The interest rate will not fall below a certain level for the collared rate period.

Please contact us or call 0800 037 8432 to discuss any questions you may have.