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 variable rate repayment mortgage is the most common type of loan.

The interest rate goes up and down during the lifetime of your mortgage, broadly in line with the interest rates in the economy as a whole. 

It's important to note, that these interest rates are set by the individual Banks and Building Societies and not The Bank of England.

This means that when The Bank of England (BOE) move interest rates up, the amount you have to pay also goes up. When interest rates falls, your payments should come down. When interest rate change, some lenders immediately adjust the amount they charge borrowers. Others wait until the end of their financial year before making the change.