Credas Financial’s services will take you through each rate step by step, for you to better understand which one to choose from.

The different kinds of mortgage rates available are:

Standard Variable Mortgage Rate 

It is the average rate the lender charges without discounts or special deals. It is subject to change depending on the market conditions. It requires no early repayment charges or fees. However, it often charges at a higher rate than a fixed one.

Fixed Rate Mortgages

It is a mortgage rate where the interest rate is fixed for a specific period. Once the period is over, it may revert to the standard variable mortgage.

Capped Rate Mortgages

A capped mortgage rate is the same as a standard variable rate. However, it charges a maximum interest rate.

Tracker Rate Mortgage

In a tracker rate mortgage, the interest rate moves up and down depending on the base rate set by the Bank of England.

Discounted Rate Mortgage

The mortgage interest rate is deducted through a discounted mortgage rate for a specific time. When the lender’s Standard Variable Rate falls, so do your monthly payments, and it can provide lower monthly mortgage payments at the start of the mortgage. However, an arrangement fee may be implemented.