Rate Options

We are able to access a range of products, all offering different interest rate options.

Samples of these are as follows:

Tracker mortgages, which track the Bank of England's Base Rate.

Variable Rate

Discounted Rate

Fixed Rate

Capped Rate

Variable Rate. This rate is set in line with market conditions. Repayments may therefore fluctuate. Any fall in the rate results in lower repayments, but an increase means a higher outlay.

We offer a number of products which are linked to a Variable Rate including:

• Tracker mortgages which always track Bank Base Rate
• 100% Mortgages
• Flexible Mortgages, which may be, on a discounted or fixed basis, offering overpayments, underpayments, payment holidays, drawdowns and cheque book facilities

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Discounted Rate mortgages The lender reduces the interest rate applicable to your loan by a specific percentage for an agreed period. Monthly repayments will therefore be less during this time. During the timing of the agreed discount, the rate of the interest applicable to your loan will fluctuate in line with changes to the Variable interest rate. At the end of the agreed discount period, the mortgage will continue with a Variable interest rate which may be for a period of time pre determined at the outset or else a redemption penalty may be charged.

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Fixed Rate mortgages This is where the interest rate is fixed for an agreed period. The rate can be fixed for 1 to 10 years or more. At the end of the agreed period, the lender may offer a further fixed rate. Some lenders apply Early Repayment Charges, which ’tie you in‘ for a further period at the lender’s standard variable rate.

Fixed rate mortgages offer peace of mind, since you are protected against rising interest rates and have the comfort of knowing exactly what your repayments will be during the fixed rate period. However, if interest rates fall, you still continue to pay interest at the fixed rate.

Most fixed rate mortgages are 'portable', which means that if you want to move house during the fixed rate period, you can transfer the fixed rate portion of your loan to the new property at the same interest rate for the remainder of the fixed rate term and avoid paying the Early Repayment Charge

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Capped Rate mortgages These are arranged on the basis that, for an agreed period, your interest rate will not rise above a pre-set level. However, your repayments will fall in line with any reductions in interest rates. Capped Rate loans offer the best of both worlds as the outlay cannot rise above a known amount, 'the cap', (however high the general interest rate) and yet will reduce in line with variable rate reductions. At the end of the agreed capped rate period another capped or fixed option may be offered, or you will be allowed to continue at the lender's standard variable rate.

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