The range of UK mortgage products has increased dramatically over the past few years. Although this increase in has added complexity, it has also introduced the availability of some very attractive mortgage products for you the customer.

Fixed Rates

With a fixed rate mortgage the rate and therefore the amount you pay each month will not change for a set period of time. After this time you will revert to the lender's standard variable rate. An advantage of a fixed rate mortgage is that you know what you will be paying over the period of the fixed rate, so you will not be caught by unexpected interest rate rises.

Standard Variable Rates

This is the lender's standard product and is usually around 1.5% to 2% above the Bank of England's Base Rate. The rate usually moves in line with the Bank of England's base rate although it may change at other times as the lender has the ability to set the rate.

Discounted Rates

This rate gives a discount on the lender's standard variable rate for a set period. As interest rates rise and fall your payments will change accordingly but they will still be in line with the discount from the standard variable rate. After the discount period you will usually revert to the lender's standard variable rate.

Base Rate Trackers

This is also known simply as a ‘Tracker'. The rate tracks or follows the Bank of England base rate by a set percentage i.e. 0.25% above or even below. When the base rate changes the amount you pay changes too. The rate is usually very competitive but does not protect you from increasing rates.

Capped Rates

A capped rate mortgage guarantees that your monthly payment will never go above a set figure within a certain time period. During this time period your payments will move up and down usually in line with the lender's SVR but will never go above the set figure. After the cap period is over the rate normally reverts to the Lenders Standard Variable Rate.