What is a fixed rate mortgage and how does it compare to a discount rate mortgage?
A fixed mortgage allows you to fix your mortgage rate for a given period of time. You may pay a higher rate of interest for this security, but this may be worthwhile if you want to budget for your monthly payments. You may also want to lock into a fixed rate if you think rates will increase. A discount rate mortgage is discounted against the “Lender” Usually a financial institution such as a bank or mortgage company, usually referred to as the mortgagee, which provides a loan or mortgage, using the property as security.’,’#B8E33C’)” ;=”” onmouseout=”kill()”>lenders “Standard Variable Rate” This is a lenders own base rate. It is usually linked to either the bank of England base rate (BBR), or LIBOR (London Inter Bank Offered Rate), although not necessarily. The Standard Variable Rate, sometimes referred to as SVR can change at the lenders will.’,’#B8E33C’)” ;=”” onmouseout=”kill()”>Standard Variable Rate which in turn roughly tracks the “Bank of England Base Rate” This is the rate of in
