Types of Interest Rates:

There are many different types of rates available, to suit many different situations / lifestyle requirements. These are some of the most popular rates explained. Click on the type for more of an explanation:

Fixed     |     Capped     |     Variable (Standard)     |     Discount     |     Tracker

A tracker mortgage tracks the BOE's base rate. When the base rate goes up so does the rate you pay and vice versa.

The tracker rate (set by the lender) is usually up to 1.5% greater.

Trackers are usually available for a fixed term. As with all fixed period mortgage interest rate schemes many lenders will charge an early repayment charge if you wish to leave the mortgage scheme early.

Some lenders may also charge an overhanging early repayment charge. This is where an early repayment charge still applies after the base rate tracker fixed period is over, and you are on the lenders SVR. Another point about the base rate tracker is that it could be difficult to budget for as the BOE's base rate fluctuates.