Types of Building Society Mortgage
In this type of interest rate deal, your building society may require that you pay an interest rate that runs parallel with the Bank of England base rate. This interest rate may decreases or increases according to bank of England base rate, making them somewhat unpredictable. However it should be remembered that these rates are often easier to predict than any adjustments made by lenders.
Standard Variable Rate
In this type of interest rate deal, your building society or mortgage lender will usually set an agreed rate that may be subject to change as time goes on. In some cases, lenders may offer these policies at a discounted rate for a set period, although customers should be wary of increases after this period has ended.
Using this type of interest rate deal, the Building Society’s mortgage rates will be set at a guaranteed fixed rate for a set period of time. When the term ends, you will be required to pay the lender’s standard variable rate, which may be set higher than the fixed rate you were initially paying. If this is the case, it may be worth shopping around for a better interest rate deal at the end of the period.