There are three different types of mortgages rates to choose from. A Fixed Rate – As a first time buyer this is the most secure interest rate, irrelevant of whether the Bank of England base rate is going up or down as your interest rate will remain the same. It’s fixed for a period of time.
A Tracker Rate – This follows the Bank of England base rate so there will be times where a tracker rate can be beneficial but times such as now, where the base rate is increasing, you will find your monthly payments increasing each time this happens. This is a rate for those who are willing to take more of a risk and have disposable income to mitigate against the risk of payments increasing
A Variable Rate – This rate is normally set by the mortgage lender so doesn’t necessarily track the Bank of England base rate. Again it is always at risk of changing which puts your payments at risk.