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How Different Mortgages Work - Part 2
Mortgages are just like any other loan from a bank or building society: you need to pay off the interest as well as the debt.
The difference with mortgages, is that there are a wider range of options you can choose:
- Variable Rates - also known as Standard Variable Rate (SVR), which is the going rate offered by individual lenders that goes up and down as interest rates rise and fall.
- Fixed Rates - the interest rate is fixed for a period of 2, 3, 5 or more years. No matter what happens to interest rates generally during the fixed periods, your monthly payments do not rise or fall.
- Capped Rates - these are fixed rates, but if the interest rate falls you pay the lower rate.
- Discounted Rates - you get a discount off the SVR for a fixed period of time.
If you have any more questions, why not look at our FAQs section or contact us for a no obligation chat.
[ 15-10-2009 ]
