Standard Variable Rate

• Rates will rise and fall in line with the market conditions.
• Some lenders can keep the changes to one a year.
• There may be penalties for early repayment.
• As the payments increase when mortgage rate rises, it may be difficult to accurately budget for your mortgage payments.

Cashback

• Pays some Cashback to you on or after completion date.
• Appeals particularly to first time buyers, money can be used for legal fees, soft furnishings etc.
• Check the mortgage offer for early repayment penalties, as you will normally be required to keep the mortgage on a standard variable rate with the lender for a specific period.
• Interest rates charged may be higher.

Fixed Rate

• Means the payments are fixed for a guaranteed period.
• Usually there is a choice of mortgage terms available.
• It may be possible to fix again when the period ends.
• Budgeting is more accurate when a mortgage payment is known.
• If interest rates rise above the fixed rate, you will benefit.
• If interest rates fall below the fixed rate, you will loose out.
• Usually your interest rate will revert to the lenders standard variable rate at the end of the fixed term.
• There may be penalties for early repayment.
• The lender usually charges an arrangement or booking fee.

Capped Rate

• The interest rate is variable with an upper limit for a guaranteed period.
• An early repayment fee will usually apply.
• The lender usually charges an arrangement fee.

Discount Variable Rate

• The mortgage rate will be guaranteed to be discounted from the lenders standard variable rate, which will rise and fall in line with the market conditions.
• After the discounted period the rate will revert to the standard variable rate.
• There will usually be a charge for early repayment.

Flexible Mortgages

• Allows you to make additional or lump sum payments in excess of your scheduled monthly amount, enabling you to pay off your mortgage early.
• If additional payments are made it will reduce your monthly interest rate charge.
• Gives you the potential to pay off your mortgage early.
• You can also take payment holidays, subject to certain restrictions.
• Can allow you to vary your mortgage payment.