What are the different types of mortgage rates?
FIXED – Your payments stay fixed for a pre-determined period – typically two to three years – no matter what happens to the Bank of England’s base rate. Select a Fixed rate mortgage if you need the reassurance of knowing exactly what your outgoings will be in the first few years. DISCOUNTED – This is where you get a discount off the lender’s standard variable rate for a specified amount of time. There is a huge range of discounts but bear in mind that the discount you get is a discount off the variable rate, so if variable rates increase your mortgage payments will go up too. TRACKER – A Tracker mortgage links your payment rate directly to the Bank of England Base Rate by being a set percentage, or part of, above the Bank of England Base Rate. Typically this is for a set number of years. Select a Tracker if you want to benefit from any immediate changes in Bank of England base rates. FLEXI – Gives you the option to pay off your mortgage early with no penalty. Consider selecting a Flexi
