Compare Mortgage Rates
The interest rates on different mortgages will of course vary a great deal depending on the provider, and it is therefore important to consider the various offers that are available. Some of the more popular types of interest rate deal are: fixed rate mortgages, offset mortgages, variable rate mortgages and tracker mortgages.
Fixed Rate Mortgages
By choosing a fixed rate mortgage agreement, customers will be expected to pay a fixed sum of interest on their mortgage for the duration of the period. Although fixed rate mortgages are often slightly more expensive interest rates, they are relatively easy to budget for, as payments are guaranteed to remain the same.
Offset agreements allow customers to commit the interest on their savings towards their mortgage in order to reduce the cost of their interest repayments. The starting interest rates on these types of mortgages may be slightly more expensive compared to many other types of agreement, and therefore they may be suited to customers who have a suitable amount of money saved up.
Standard Variable Rate Mortgages
Once these mortgages have started, they will have their rates adjusted according to the policy of the lender and they are often introduced once a particular deal has reached its end. As they can be very unpredictable, customers are advised to compare interest rates on mortgages in order to get a better deal.
A tracker mortgage has its interest rate set by the provider, but it will then be adjusted in accordance with the Bank of England’s base interest rates, which cannot be influenced by the provider. Customers may therefore benefit directly from any cuts that are introduced, but may also have their rates increased depending on outside economic factors.