Why are there often three different rates on mortgage adverts?
There’s the actual rate you pay. This might be a fixed rate or a variable rate, such as a tracker. Then there’ll be the rate you switch to after the fixed rate or tracker ends – check the details of the follow-on rates as this will depend on the mortgage lender. For mortgages available through us this will be the Homeowner Variable Rate or the Buy-to-Let Variable Rate. You may also be able to switch to another deal at that time if you want to. And then there’s the ‘APR’. This stands for Annual Percentage Rate and is intended to show the true overall cost of a loan. It includes the actual rate you pay plus any other costs such as any fees and charges the lender makes to set up the mortgage.
