The Mortgage Point

• Cash Back
• Capped
• Base Rate Tracker

• Fixed
• Discounted

Cash Back

A Cash Back loan means that although the interest rate may be fixed or variable, the lender will pay on completion either a fixed amount or a percentage of the loan. These amounts can be used to offset any expenses or with certain lenders as a deposit.

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Fixed

If you choose a Fixed Rate loan, the interest rate applicable to your loan will not change for a set period of time (the 'fixed rate period') which will be specified in the relevent scheme details sheets and in your mortgage offer. This gives you the security of knowing exactly what your monthly payments are going to be during this period of time. When the fixed rate period comes to an end, the interest rate will automatically become variable again.

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Capped

Choosing a Capped Rate loan is that the interest rate applicable to your loan is guaranteed not to rise above a specified level ('the cap') during a specified period. This gives you the comfort of knowing that during the capped rate period the interest rate cannot go up above the cap and may even go down. Again, like the fixed rate, when the period during which the interest rate is capped comes to an end, the interest rate will automatically become variable and your monthly payments may increase if the variable rate is higher than the cap.

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Discounted

Where you have chosen a Discounted Rate then the interest applicable to your loan will be a set amount below the lender's standard variable rate for a specified period. As with the variable rate, the interest will vary from time to time. At the end of the discounted rate period, the interest rate will automatically revert to the variable rate. This means that your monthly payments will increase.

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Base Rate Tracker

This type of mortgage is directly linked to the Bank Of England base rate and immediately alters with changes in that rate as opposed to being linked to the lender's individual standard variable rate.

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