In mortgage, the term “rate” refers to the interest rate that you will pay on your mortgage loan. The interest rate is a percentage of the amount of money you borrow that you will pay to the lender each year. For example, if you borrow £200,000 and your interest rate is 5%, you will pay £10,000 in interest each year.
The interest rate on a mortgage loan is determined by a number of factors, including your credit score, the amount of money you borrow, and the length of the loan term. Lenders typically offer lower interest rates to borrowers with good credit scores and who borrow smaller amounts of money. They also offer lower interest rates on longer loan terms.