However, if the base rate of interest should fall during the fixture period, the rate payable still remains at the fixed rate and payments do not reduce. At the end of the fixed interest rate period, the interest rate payable is normally the lender's standard variable rate. Some lenders will charge a penalty if the mortgage is redeemed within the fixture period. Our Independent Advisers can filter through the myriad of products available and advise the most suitable mortgage to meet your needs. Types of Mortgage - Variable rate Variable rate mortgages offer interest rates that vary in line with the base rate of interest.
Borrowers remain exposed to the ups and downs in the economy as reflected in interest rates.
Most mortgages granted on a variable rate of interest do not impose redemption charges. Our Independent Advisers can filter through the myriad of products available and advise the most suitable mortgage to meet your needs. Types of Mortgage - Discounted rate Discounts are available on the rate of interest charged, normally for a fixed period after which the rate of interest will revert to the variable rate. These mortgages are designed to provide an initial saving and often tie the borrower in to the lender's standard variable rate for a set period after the discount period. Penalties may be charged for redemption within the discount period.