Homes and Commercial Property For Sale
Interest rates
So you’ve got a repayment method. Now you need to take a look at the interest rate deal on offer.
Standard variable rate
A variable rate mortgage is where your repayments can go up or down with the lender's standard interest rate. This can change with the Bank of England base rate changes.
Standard variable rate with cashback
This is the same as the rate above where your repayments go up or down with the lender's standard interest rate and change with the Bank of England base rate, also with this deal you get a cash lump sum.
Discounted rate
To start with your payments are at a low interest rate and move up to the lenders stnadard vaiable rate. This is after a set period arranged with the lender.
Tracker
Mortgage tracker rates are govenend the Bank of England rate or some other 'base rate'. This means they'll always go up or down in line with changes to the base rate.
Fixed rate
For a set period arranged by the lender you will pay a fixed rate of interest. This interest option will allow you to keep a track on exactly what your paying per month. After this fixed period you will usually move to the lenders standard variable rate of interest.
WARNING: You can incure penalties if you pull out early.
Capped or cap and collar
A capped rate of interest means you will pay a variable interest rate set by the lender. This also comes with an interest rate ceiling which means your payments will not go above an aggreed amount for a set period. This deals can also include a collar too - this where your payments fall to the lowest rate you'll get.
WARNING: If interest rates fall below the collar, you'll lose out.
|
|
