Product |
Good For |
But Remember |
| Fixed Rate – Your rate is fixed for a set period of times say 2,3 or 5 years |
Knowing what you will pay for a specific length of time |
If you remortgage during your fixed rate period, you could pay a penalty |
| Tracker – Your rate tracks the Bank of England Base Rate by a certain amount |
Getting a lower rate during your mortgage if the Bank of England rate falls |
If the Bank of England rate increases your rate may go up too |
| Discounted Rate – This tracks the lenders SVR, however you receive a discounts off their rate |
Having a lower rate than the lenders SVR and may go down further with Bank of England interest rate cuts |
Your rate will go up if the lenders SVR increases and if you remortgage during your discounted period, you may pay a penalty |
| Offset - Your mortgage is linked and offset by another account |
Making savings if you have a significant savings account |
You wont receive interest on your savings and the rate will be SVR |
| Variable - You pay the lenders interest rate for the whole of your mortgage |
Achieving savings if the bank reduces its SVR - Also these mortgages don't usually have penalties to leave or tie ins |
If the SVR goes up, so will your monthly payment |
| Flexible - Allows overpayments and payment holidays usually with a benefit of a discounted lending rate |
Allows flexibility of payment |
There could be early repayment charges |
