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What Deals Are Available

Interest-Rate Deals

Whichever mortgage you choose, you’ll then need to look at the interest-rate deals on offer.

Mortgage lenders offer different interest rates and also different deals.

Here are some of the most common types available:

You have two important decisions when choosing an interest-rate deal:

  • Whether to choose a fixed or variable rate mortgage.
  • Whether to choose a short-term or longer-term deal.

Each one has advantages.  The best for you depends on your practical needs and circumstances.

Type of interest rate How it works
Fixed Your payments are the same every month for a certain period, say, two, five or ten years or longer. At the end of the deal period, the lender usually charges you its standard variable rate (unless the rate is fixed for the whole term).
Tracker (changes in line with a specified rate) With this variable-rate loan, the interest is a set amount above or below the Bank of England or, some other, base rate, and so always tracks changes in that rate. At the end of the deal period, the lender usually charges you its standard variable rate.
Discounted Your payments are variable, but they are set at less than the lender’s standard variable rate for a period of time. At the end of this period, the lender usually charges you its standard variable rate.
Capped Your payments are variable and often linked to a base rate, but fixed not to go above a set level (the ‘cap’ or ‘ceiling’) during the deal period. At the end of the period, the lender usually charges you its standard variable rate.
Collared This may be used un combination with either, or both capped rate or a tracker. Your payments are variable but will not fall below a set level (the ‘collar’ or ‘floor’).
Standard Variable Rate Your payments go up or down at the lenders discretion. Their decision may be influenced by changes in the Bank of England interest rate.

 

Contacts

Simply Mortgages
62 High Street
Bangor
Gwynedd
LL57 1NR

Tel: 01248 371088

Email:
gwyn@simplymortgages-uk.com
sally@simplymortgages-uk.com

Legal disclaimer

Simply Mortgages is authorised and regulated by the Financial Conduct Authority.
Your home may be repossessed if you do not keep up repayments on your mortgage. Some Buy To Lets are not regulated by the Financial Conduct Authority.